More expensive electricity for the economy in FBiH is shutting down jobs and reducing workers' salaries

SARAJEVO, (Patria) - A new contract proposal with Elektroprivreda Bosne i Hercegovine has jeopardized jobs and survival.

Zenica's Arcelor Mittal is the largest consumer of electricity in Bosnia and Herzegovina. It allocates millions of marks monthly for this purpose. It employs more than two thousand three hundred people. A new contract proposal with Elektroprivreda Bosne i Hercegovine has jeopardized jobs and survival.

"The price of electricity they are asking for 2022 is 125 times higher than the current one. This would result in additional costs of 70 million marks. Annually, we consume 520 thousand megawatts of electricity, and with an impact of 70 million, there is no point in continuing production. We cannot survive."

Arcelor Mittal is also one of the companies where a warning strike has been announced due to the planned electricity price increase. They say they will not allow the Federal government and electric power companies to gamble with the economy and jobs. Layoffs are, they claim, inevitable with electricity bills increasing by up to 200 percent.

"I even know some companies that have signed a 240 percent increase in electricity, which truly puts many companies in trouble. Job reductions are certain, even impacting workers' salaries. Price increases for products and services on the domestic market. Those who sell will certainly have to factor their products into the price. All of this, unfortunately, will ultimately be paid for by the citizens of this country."

The relevant minister, Nermin Džindić, claims he is willing to hold a meeting with employers within the next two days. He reminds that, by a Government conclusion, a working group was formed, consisting of representatives from the Ministry, two electric power companies, FERK, the Competition Council, and the Prime Minister's Office. A proposed solution should be presented to the Government by the end of the week. 

"The data that electric power companies have 65 thousand measurement points in the economy and the data that for 55 thousand measurement points there will be no price increase, indicates that the situation is not as presented. The remaining 10 thousand measurement points are, of course, on the market supply model, and the legal framework defines how this sector operates. What is also a known fact is that all those on the market supply model have the opportunity to purchase electricity from 23 registered dealers or electricity sellers."