New Management of EP BiH: Loss of KM 55.11 Million, Revenue Down by KM 108.96 Million

(Patria) - The acting general director and acting members of the Management of JP Elektroprivreda BiH, with the aim of objective public information, point out that on the day they took office, August 24, 2023, the company's financial operations resulted in a loss of KM 55.11 million, and the revenue generated in eight months was KM 108.96 million lower than planned, it was announced from Elektroprivreda BiH.

Upon taking over the company, the current Management faced a significantly reduced supply of coal from the EPBiH Concern mines to the thermal power plants in Tuzla and Kakanj, which in the period January-August amounted to only 57.1 percent of the planned and contracted quantities, and a drop in electricity production. Due to the revitalization that started with a four-month delay, Block 6 at the Tuzla Thermal Power Plant was shut down.

"The situation encountered with coal deliveries and the serious questioning of electricity production and the stability of the power system are the result of the absence of necessary measures and activities by the previous Government of FBiH and the managements of JP Elektroprivreda BiH to stop the continuous decline in coal supply from the Concern mines, which began in 2019.

The direct consequence is a decrease in electricity production by approximately 1,400 GWh in 2022 compared to 2018, a decrease in balance surpluses and revenue from market sales by approximately KM 280 million. The trend of a significant decline in coal supply and electricity production, balance surpluses intended for sale on the market, and revenue from this source continued in 2023," stated Elektroprivreda BiH.

It is added that in the information sent on January 30, 2023, the previous Government of FBiH was warned about the causes affecting the company's operations and leading to an inevitable negative financial result, i.e., a loss of KM 90.8 million. In the same information, the Government of FBiH, considering the factors crucial for performing basic activities, the state of coal depots, the dynamics of its delivery, the hydrological conditions and electricity consumption, the downtime of Block 6 at the Tuzla Thermal Power Plant, and the supply of heat energy for heating purposes, was informed that JP Elektroprivreda BiH is exposed to a significant risk of electricity shortage to meet the needs of its customers, and consequently, the need to purchase energy on the market. Reactions and activities to eliminate or mitigate the negative causes were absent.

"Given the fact that the previous Government of FBiH was seriously informed nine months ago about the assessment of power conditions and the financial position of the company for the period February-December 2023, the dissemination of information about a non-existent loss and the availability of a significant amount of funds in accounts further complicates the difficult situation in which JP Elektroprivreda BiH finds itself and hinders efforts and activities to find solutions that will avoid the financial collapse of the most significant economic entity in FBiH and jeopardize the stability of the power system and customer supply.

The current Management of JP Elektroprivreda BiH faces a difficult task, primarily to stop the further decline in coal and electricity production, for which the synergistic action of all actors involved in the functioning of the power system in FBiH is necessary," said the statement from the Communications Service of JP Elektroprivreda BiH.