EU Energy Aid Package: BiH Authorities Responsible for Distribution to Beneficiaries, Entities Chose Categories

(Patria) - The energy aid package, through which EU funds secured direct assistance of 50 million euros for vulnerable households, has not yet been fully implemented.

Although aid has been distributed in RS, in the FBiH entity, funds are being transferred to municipalities and cities that will pay beneficiaries who have met the public call criteria. Last week, the Federal Ministry of Labour and Social Policy specified the amounts to be paid: 364 KM for pensioners and 579 KM for other categories. A total of 154,779 households met the criteria.

The EU Delegation told Patria that 20 million euros are allocated for improving energy efficiency in residential buildings and for micro, small, and medium-sized enterprises.

"The implementation of the Energy Support Package is proceeding in accordance with the Action Plan adopted by the Council of Ministers of BiH on December 22, 2022. The Action Plan includes measures for the implementation of the Energy Support Package, as well as key reforms needed to accelerate the energy transition. The timeframe for the implementation of the Energy Support Package is April 2023 – April 2024, and domestic authorities are responsible for ensuring that support reaches those it is intended for in a timely manner. Competent institutions in the Federation of Bosnia and Herzegovina, Republika Srpska, and Brčko District are working on distributing funds through competent entity ministries and entity environmental protection funds and administrative units in Brčko District. The management of funds is entirely the responsibility of the authorities in BiH, given that the package was provided as direct budget support, meaning funds were transferred to institutions responsible for further distribution to beneficiaries," they stated.

Regarding support for vulnerable households, this is the first time that domestic authorities in BiH have received support from the European Union for distribution to the public in this manner, which requires careful planning, especially when determining which households meet the criteria for receiving aid.

"The distribution criteria varied across entities due to different legal provisions and definitions of the most vulnerable categories for receiving aid, which is why the entities chose and proposed categories for aid allocation. Since the responsibility lies with the authorities in BiH to ensure that funds reach the intended beneficiaries who are entitled to them, precise figures and amounts should be provided by the competent authorities in BiH. The way BiH manages funds from the Energy Support Package will be an important indicator for any future direct support to BiH institutions," the EU Delegation stated.