Sarajevo's VIK cannot pay for electricity 305% more expensive: We are heading for collapse

SARAJEVO, (Patria) - KJKP "Vodovod i kanalizacija" d.o.o. Sarajevo received an offer for an electricity supply contract under a new price list, according to which the price of electricity is 305 percent higher compared to the contract from this year. They emphasize that this company will face serious problems if the authorities at the Federation of Bosnia and Herzegovina level do not react.

"Namely, the offer for electricity supply for the period 01.01.2022-31.12.2022 amounts to: 0.3501 (KM/kWh) for the higher tariff and 0.2341 (KM/kWh) for the lower tariff, which is 305% higher in percentage compared to the current contract from 2021. According to the current contract, the annual expenditure for electricity is approx. 8,000,000.00 KM, which would mean that these costs will increase by 16,500,000 KM in the next year 2022, making a total figure of approx. 24,500,000.00 KM. Signing this contract would jeopardize our business, given that with such electricity prices, we would not be able to meet our obligations," stated VIK.

They note that KJKP "Vodovod i kanalizacija" d.o.o. Sarajevo is intensively investing in capital investments, reconstruction of infrastructural facilities, pumping stations, and pipelines, which are financed by loan funds from the European Bank for Reconstruction and Development, and that they are in the loan repayment period.

"Any additional financial cost would call into question our ability to meet our obligations, however, by signing this contract, we would certainly bring our company to a state of collapse. On this occasion, we ask the competent institutions of the FBiH (Government and FMERI) to find a solution regarding the electricity prices for qualified customers, in order to obtain electricity prices that are realistic and acceptable for all parties," the appeal from VIK states.