Andelija wrote to the Government and Džindić: Limit electricity prices and ease the burden on the FBiH economy

SARAJEVO, (Patria) - The General Director of JP Elektroprivreda BiH, Admir Andelija, sent a letter on November 4 to the FBiH Government and the Minister of Energy, Mining and Industry, Nermin Džindić, in which he explains the changes in electricity prices on the market, and that Europe is going through an energy crisis.

“How the situation will unfold further depends on many global factors, which directly affect the price of electricity on the market, and ultimately the prices that JP Elektroprivreda BiH d.d. Sarajevo, as a market player, can offer to its customers. It is evident that the increase in electricity prices on the market directly affects the business operations of entrepreneurs in FBiH. We believe that the FBiH Government has appropriate mechanisms that could ease the business operations and functioning of entrepreneurs in FBiH, without putting EP BiH in a situation to act contrary to laws and market principles,” stated Andelija.

He also proposed to the FBiH Government to adopt an appropriate regulation that would enable uniform action towards market customers.

“One of the possibilities is to adopt a temporary Decision that would limit the increase in electricity prices depending on the customer's annual consumption. Given that, according to the current market situation, an increase in average prices for customers of more than 120% compared to the previous year has been observed, a reduction in the impact of market prices is proposed as follows:

- Customers with annual electricity consumption up to/and 1 GWh – increase of tariff rates from the current contract by 9.9%,

- Customers with annual electricity consumption from 1 GWh up to/and 10 GWh – increase of tariff rates from the current contract by 30%,

Customers with annual electricity consumption above 10 GWh – increase of tariff rates in accordance with the market situation.

Andelija explains that the increase in electricity prices on the market is due to problems with gas, but also a historical jump in prices in 2021, but that support measures can be provided to maintain the economy of the Federation of BiH.

In his letter, Andelija also sent a proposal for a decision on temporary measures for electricity price control for 2022.

Otherwise, the FBiH Government, at its 295th session held on December 16, 2021, adopted a Decision on approving coal prices for thermal power plants based on the proposal of EP BiH, namely 5.64 KM/GJ for coal from surface exploitation and 6.00 KM/GJ for coal from underground exploitation.