New electricity price starts July 1 with an increased VAT to 18 percent, Besimi assures that those who consume less electricity will have lower bills

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Measures are continually adapted to the crisis circumstances and the new methodology provides an opportunity to create a structure of consumption that motivates savings, said Macedonian Finance Minister Fatmir Besimi on the end of the reduced VAT rates for household electricity.

The minister also welcomes the fact of the introduction of the four block tariffs.

“This means that those who spend less, have a lower price and thus every tariff level. You already have the calculations and when it’s official, we’ll see what the effect of block tariffs is in terms of VAT. The government has given a recommendation and we should know that it is being acted on two bases – one is as the policy holder, and the other is as the owner of the ESM. The Government gave recommendations to the Board of Directors for a price lower than the cost price. Block tariffs target electricity support for households with lower incomes and achieve that those who spend less receive a lower price,” Besimi said at the signing of the investment grant agreement.

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