If Elektroprivreda BiH owes a billion KM, Energy Community rules are dangerously violated

SARAJevo, (Patria) - Director of the Energy Community Secretariat Janez Kopač will attend the thematic session of the House of Representatives of the Federation of BiH Parliament tomorrow, which will be dedicated to the fulfillment of the obligations of the Federation of BiH under the Treaty establishing the Energy Community.

In line with the agenda of the thematic session of the House of Representatives of the FBiH Parliament, which relates to the fulfillment of obligations from the Treaty establishing the Energy Community, the Platform for Progress poses the following questions to the competent Ministry and representatives of the Public Enterprise Elektroprivreda BiH, with the aim of demystifying the past policy in the energy sector and adequately informing the citizens of Bosnia and Herzegovina.

Through the Treaty establishing the Energy Community, BiH committed to applying market principles in the energy sector. These include equal rights and obligations for all market participants.

Elektroprivreda BiH, as one of the most significant companies in this sector, currently operates with hundreds of millions of convertible marks in outstanding obligations to tax administrations, other state funds, suppliers, etc. Other economic entities do not enjoy such treatment from the state.

"Until when is it planned to promote such a system where some are enabled to do business without fulfilling their legally defined obligations, while others are not allowed to do so? It is clear that such principles are contrary to the rules and principles promoted by normal market operations and which BiH has undertaken as an obligation through the Treaty establishing the Energy Community," the Platform for Progress asks.

They also ask whether the information available in the media is true, that the Elektroprivreda BiH Concern owes more than a billion KM for taxes, contributions, suppliers, etc.? Were these debts taken into account during the economic evaluation of Block 7 of the Tuzla Thermal Power Plant? By Decision no. 54/18 (Official Gazette of BiH), the competent institution determined state aid for Block 7. This institution identifies JP EP BiH as the 100% owner of seven (7) mines in FBiH in the Decision, but does not show the debts of these economic entities.

"Can the citizens of BiH know the exact financial obligations of the Elektroprivreda BiH Concern, and does this concealment of information about the catastrophic financial situation constitute a violation of the provisions of the Treaty establishing the Energy Community, and does it also have an impact on the initiation, and perhaps the outcome, of the legal dispute with the Energy Community?" they further state.

The state of BiH guarantees the loan for Block 7 with its entire fiscal capacity. In this procedure, we have a legal dispute with the Energy Community.

"Can you explain to the citizens of BiH what the plan is for resolving these open issues? Who and how will repay the approx. 450 million KM (according to the statement of the director of the Kreka mine) of current debts of this mine. How many more hundreds of millions are needed to bring this mine into a normal state? With these debts, necessary investments, and the loan for Block 7, what is the profitability of this project (for the repayment of which loan the citizens of BiH are responsible)? What is expected from the legal dispute with the Energy Community, and what is the plan in case of an unfavorable outcome? Who is responsible for the current financial collapse in the mines, and why is a plan not presented to the citizens for resolving this situation and removing all dilemmas that make the future of the entire sector uncertain?" it is stated, among other things.