Experts warn: Electricity price increase is inevitable, but the model is discriminatory

(Patria) - Electricity will be more expensive, but in blocks and with different tariffs. We analyze: who will pay and how much? The Federal Regulatory Commission is next, before citizens see new consumption calculations on their bills. Opinions are divided. On one hand, the introduction of new tariffs is justified, and on the other hand, experts warn that the price increase is inevitable, and according to the proposed model, discriminatory. It is also possible that the constitutionality of this decision will be reviewed.

Public enterprise Elektroprivreda BiH has submitted the long-considered block tariffs for electricity consumption calculation to FERK. The head of Elektroprivreda claims that there will be no linear price increase, but rather that those who consume more will pay more through block tariffs.

"With block tariffs, for 60 percent of citizens, there should be no increase in the price of electricity, and only about three percent are large consumers. 430,000 households would not fall into the higher category," said Sanel Buljubašić, acting director of JP Elektroprivreda BiH.

The proposal includes three tariffs. The first, "green," is for consumption up to 268 kWh per month, and the cost of the first 268 kWh will be calculated at the current price list. Consumption from 268 to 1,000 kWh will be calculated at the "blue" tariff price, which, according to Elektroprivreda's data, applies to about 37 percent of customers. Consumers exceeding 1,000 kWh per month will be calculated at the "red" tariff. Experts believe that the consumption limit for the first category, i.e., actual consumers, is not realistic and should be approximately 400 kWh.

"A huge number of households have a consumption of 0 kilowatt-hours during 11 months of the year. This average of 268 kilowatt-hours is unrealistically low because it includes many zero kilowatt-hours from 11 months when the diaspora or property owners are not in Bosnia and Herzegovina at all," explains Amer Jerlagić, an energy expert and former director of JP Elektroprivreda BiH.

There are numerous reasons for introducing block tariffs - a decrease in coal production in the concern's mines by about 50 percent compared to the required 5.5 million tons, a poor financial result in the previous year with a loss of over 142 million marks, as well as the temporary closure of Zenica coal mines.

"If they had had that amount of coal available and full depots, i.e., operational readiness, they would have had enough energy for domestic needs and for export," adds Jerlagić.

"First of all, Elektroprivreda needed to restructure its own operations, i.e., its business model, and that is the biggest criticism from us representatives and the public - why don't you clean up your own backyard before proposing a measure that means a price increase for most consumers," says Admir Čavalić, a representative of SBiH in the House of Representatives of the FBiH Parliament.

The Elektroprivreda business plan for the period 2024-2026 envisages an electricity price increase and a revenue increase of up to 10 percent. The Government of the Federation of BiH and the relevant ministry are clearly in agreement with the plan.

"These are simply energy saving methods for the upcoming period. If we also consider the problem related to coal production – which directly affects the production level, then it is justified for Elektroprivreda to include such an activity in its plan," stated Vedran Lakić, Minister of Energy, Mining and Industry of FBiH (SDP).

It is a fact that Elektriprivreda has the possibility to establish different prices based on the amount of electricity consumed. However, experts also believe that an economic and social consumer card should have been prepared first, and that this method of introducing a tariff model for consumption calculation is discriminatory. They warn of a similar scenario as in RS, where the Constitutional Court ruled in late February that decisions on new tariffs were not in accordance with the constitution and law.

"It is not a luxury good that you can say: I will or will not use electricity depending on comfort and luxury. Electricity is a necessity and a need for every household, regardless of the price, you will probably consume the same, the light in the hallway will probably remain on with the new tariff and without it, but you will be discriminated against compared to weekend houses, empty houses, apartments," emphasizes Čavalić.

According to the submitted proposal, the new tariff model should be implemented starting June 10th of this year. The decision of the Energy Regulatory Commission in the Federation, based on the proposal of Elektroprivreda, which was approved by the company's Management and Supervisory Boards, should be known within 60 days, writes federalna.ba.