Novalić: If Everyone Adheres to the Agreement, Electricity Prices Will Not Increase

Prime Minister of the Federation of Bosnia and Herzegovina Fadil Novalić held a meeting yesterday in Sarajevo with representatives of seven coal mine workers' unions in the FBiH and the General Director of Elektroprivreda BiH, Elvedin Grabovica. The meeting resulted in an Agreement defining rapid measures for further consolidation of the mines.

One of the points of the Agreement also defines the allocation of funds in the amount of 0.01 KM per kilowatt-hour, starting from November 1, 2015. Bearing in mind that there are significant reserves in the operations of the power utility and mines, the Government of the Federation of Bosnia and Herzegovina believes that at this moment there is no need to increase the price of electricity.

Savings are possible through a revision of the operations of the power utilities, which currently enjoy benefits and privileges in their collective agreement that are not in line with the standards of public companies in BiH. Specifically, savings are possible in the segments of reducing high salary coefficients, daily allowances amounting to 10 percent of the average salary in the FBiH, various bonuses and salary supplements, as well as health services, not only for employees but also for their family members.

- It is important to emphasize that the funds planned for the functioning of the Fund for Development and Modernization of Coal Mines will be secured through savings, restructuring, and optimization of operations, and if they prove insufficient, we will also consider the possibility of increasing the price of electricity. However, if each of the signatory parties to this agreement adheres to what was agreed upon and implements the measures defined therein, I am convinced that there will be no increase in the price of electricity. I am very encouraged by the positions of the SSRRFBiH and their view of the problem, and I see this as the beginning of a systemic resolution of this issue – emphasized the federal prime minister.