EPBiH sinks into a loss of 110 million KM despite electricity price hikes, electricity purchases rise by 87.5 percent

While citizens of the Federation of BiH have faced two electricity price hikes in the last two years, Elektroprivreda BiH recorded increasingly poor business results. In less than 14 months, household electricity bills were increased twice – first by 10.04 percent in August 2024, and then by an additional approximately six percent from September 2025. Cumulatively, this represents a price increase of about 16.6 percent. Despite this, the annual report of this public enterprise for 2025 reveals a bleak picture: a decline in production and a rise in electricity imports, a complete collapse in coal production, continuous losses, and a significant increase in the number of employees despite the financial turmoil, writes Istraga.

According to the official report, Elektroprivreda BiH ended 2025 with a loss of 52.4 million KM, after recording a loss of nearly 58 million KM the previous year. This means that in just two years, the company accumulated over 110 million KM in losses, effectively wiping out years of accumulated profit that had long served as the financial backbone of this public enterprise.

In the report, the EPBiH management presents as a business success the fact that the loss is about 8.8 million KM less than the revised plan. At the same time, it is concealed that the original business plan for 2025 projected positive operations, and it was only after a dramatic deterioration of the situation at the end of the year that a rebalancing was carried out, legitimizing the expected deficit.

One of the key events during 2025 was the new increase in electricity prices for households and the introduction of block tariffs from September. This was the second price increase in a short period. The result? Revenue from electricity sales rose from 1.163 billion KM to 1.395 billion KM, an increase of more than 230 million KM compared to 2024. Total revenue thus reached a record 1.506 billion KM. However, even record revenues were not enough to halt the financial decline. Total expenses and costs jumped to 1.558 billion KM, resulting in a new multi-million loss. Therefore, although citizens paid more for electricity, the management of Elektroprivreda BiH failed to turn higher revenues into stable operations.

Production falls, imports explode

The biggest problem lies in electricity production. Total production of EPBiH in 2025 amounted to 4,808 GWh, which is more than 500 GWh less than the previous year, when 5,318 GWh were produced. The management admits that production was as much as 1,452 GWh less than originally planned, while realization was also weaker than the revised plan. Particularly concerning is the data that due to a lack of coal, about 1,000 GWh of production from thermal power plants was lost, forcing the company to purchase energy on the market at significantly higher prices.

The consequences are dramatic – electricity purchases increased by 87.5 percent compared to 2024, and electricity procurement costs rose from 122.7 million KM in 2024 to 286.8 million KM in 2025, representing an increase of about 164 million KM or nearly 134 percent. A total of 2,633 GWh of electricity was purchased, the highest level of procurement in recent years. Thus, Elektroprivreda BiH has gone from being a company that was a net exporter of electricity for years to a system increasingly dependent on purchasing energy on the market.

The report cites problems with coal mines as the main reason for the catastrophic results. Mines within the Concern delivered about one million tons less coal than the contracted quantities during 2025. Total coal procurement amounted to 4.16 million tons, nearly one million tons less than the contracted 5.1 million tons.

Due to the coal shortage, thermal power plants, as stated, could not achieve planned production, and EPBiH was forced to compensate for the shortfall by purchasing energy on the market. Practically, the entire energy chain linking mines and thermal power plants has proven unsustainable.

An interesting paradox is found in consumption data. The management states that household consumption in 2025 increased by 5.5 percent, despite the increase in electricity prices. It is noted that electricity for households is still "relatively cheap" and that increased consumption further worsens the company's financial position because part of that energy must be purchased at market prices. This means that the price hikes did not solve the fundamental problem – the gap between production capacity and growing consumption.

New hires while losses grow

In a year when a new multi-million loss was recorded, while production fell and losses grew, Elektroprivreda BiH hired more than 150 new workers – the number of employees increased from 3,748 to 3,905 during the announced "business rationalization." The seriousness of the situation is also indicated by the fact that the EPBiH management officially requested additional financial support from the Government of the Federation of BiH in November 2025, warning of a growing risk of illiquidity and threats to the stability of the electricity system.

The issue of covering losses is particularly concerning. After two consecutive years of deficits, the accumulated profit that had long served as a protective financial cushion is practically exhausted. Losses will have to be covered from the reserve fund, raising serious questions about the company's future financial stability.

If the warnings of the Audit Committee are confirmed, that after covering losses the reserve fund could fall below the legally prescribed level of 25 percent of share capital, Elektroprivreda BiH will face not only business but also serious corporate and legal problems. Namely, the EPBiH Audit Committee pointed out that this coverage of losses would violate the law because the reserve fund would fall to 14 percent of share capital, while the legal minimum is 25 percent.

The report for 2025 clearly shows that EPBiH is going through a deep systemic crisis. This is confirmed in the report's conclusions themselves, despite the statement that EPBiH "managed to realize the tasks defined by legal frameworks" last year and that electricity supply "took place continuously, without reductions."

"In the absence of primary energy sources, and consequently insufficient quantities of self-produced electricity, this endeavor had its high price, and there were no surpluses for sale through trading activities, nor profit in operations" – the report states.

In short, citizens got higher bills, Elektroprivreda got higher revenues, but the result remained the same – a large loss, growing dependence on imports, and increasing uncertainty about the future of the largest electricity company in the Federation of BiH.