Elektroprivreda BiH requests an urgent 10 percent electricity price increase for households

(Patria) - After the Energy Regulatory Commission of FBiH (FERK) rejected the proposal for a special three-tariff pricing model that did not foresee a price increase for the majority of customers (around 60%), Elektroprivreda BiH submitted a proposal to the regulator for a linear increase in electricity prices for the household and other consumption categories.

The proposed percentage of linear increase, determined after reviewing the rejected pricing model, is 10% for households and 8.1% for other consumption at 0.4 kV, including energy and network fees.

To preserve the integrity of the energy system, given the urgency of the situation, Elektroprivreda BiH considers it necessary to act immediately to ensure the operational stability of the system, and thus the continuous supply of electricity to all customers.

General Director of Elektroprivreda BiH, Dr. Sci. Sanel Buljubašić, emphasizes that despite FERK's rejection of the three-tariff model, Elektroprivreda BiH will find the best solutions and ways to subsidize vulnerable categories of the population in talks with the Government of FBiH.

"The three-tariff pricing model was a good and sustainable proposal for the electricity supply system, but also a good model for our citizens. Even with the increase, our customers will pay the lowest electricity prices in the region.“

We remind that FERK, regarding the three-tariff model, is of the opinion that the proposed blue tariff (consumption from 268 to 1,000 kWh) is more than 50% higher compared to the green tariff (consumption up to 268 kWh), which is related only to energy, without including network fees. However, Elektroprivreda BiH's analysis showed that the actual difference is far smaller when network fees are included.

In addition to the error in calculating the average price difference that would result from the proposed increase with three tariffs, FERK failed to independently propose an increase, i.e., price harmonization, which regulations oblige it to do.

The rejection of the proposed three-tariff pricing model, designed to stimulate more efficient electricity use and reduce consumption, has necessitated a new procedure to ensure the stability and functionality of the system.

The proposal for a linear price increase was developed with careful consideration of current economic and market conditions, and is aimed at achieving a balance between the need to ensure system sustainability and the operational readiness of electricity generation facilities.

Elektroprivreda BiH is the largest electric utility company in Bosnia and Herzegovina, whose mission is to produce and distribute electricity, and reliably supply more than 800,000 customers, constantly improving its competitiveness in the electricity market, using domestic resources and meeting mandatory environmental requirements, according to Elektroprivreda BiH.