Businesses warn the Government: Limit electricity price increases, citizens will suffer the consequences

SARAJEVO, (Patria) - Companies from the Federation of Bosnia and Herzegovina will not sign the received contracts with power utilities in the FBiH, under which electricity prices for businesses have been increased several times, up to 350 percent for some companies.

This decision was made by the Employers' Association of FBiH, which called on its members, as well as all other companies in FBiH, not to sign new contracts with power utilities for electricity supply at several times increased prices.

From the UPFBiH, they once again call on the Government of the Federation of BiH to urgently take all necessary measures and, through the management boards of public power utility companies in FBiH, adopt appropriate decisions to limit the increase
in electricity prices for companies that are not supplied within the universal service. In this regard, the increase in electricity prices for an individual electricity customer in 2022 must not exceed 20
percent, compared to the contractual price for electricity supply that this customer had on 01.09.2021.

If the Government of the Federation of Bosnia and Herzegovina allows an increase in electricity prices of 150 to 350 percent for companies in FBiH, there will be mass shutdowns of plants, loss of jobs, and reduction of salaries for employees. There will also be a decrease in exports, and fewer investments in new plants, technologies, and new jobs.

The increase in electricity prices for businesses in FBiH leads to an increase in the prices of food, goods, and services paid by citizens, who will actually be the only ones affected. Thus, the cost of living per household on an annual basis could
increase by more than 500 KM. This will result in increased inflation, but also be a one-way ticket for the departure of young, qualified personnel from BiH.

The Government of FBiH is the only one that can prevent this. We call on the Government of FBiH to urgently react and limit the increase in electricity prices for companies to a maximum of 20 percent, state from the Employers' Association of FBiH.