FBiH Government did not approve wholesale gas price increase

SARAJEVO, (Patria) - The Government of the Federation of BiH, at today's session in Sarajevo, adopted a Decision by which it did not give consent to the wholesale price of natural gas.

In January 2019, the company BH GAS d.o.o. Sarajevo submitted a request to the Federal Ministry of Trade seeking an increase in the wholesale price of gas to distribution companies by 31.31 percent, i.e. from 495 KM to 650 KM/1,000 SM3, and the application of the new price from January 1, 2019. In accordance with the prescribed legal procedure, the opinion of the Federal Ministry of Energy, Mining and Industry was also submitted with the request.

This Ministry stated in its opinion that there are reasons for increasing the price of natural gas, but also that the proposed increase in the wholesale price of 31.31 percent, with all negative socio-economic aspects, will also be reflected in a reduction in natural gas consumption in the Federation of BiH and, ultimately, result in an additional increase in the price of this energy source.

Also, the opinion pointed out that BH GAS should consider with special attention the possibility of a gradual increase in natural gas prices. Since BH GAS did not revise its request in accordance with the opinion of the relevant ministry, and respecting that the legally prescribed deadline for processing the request is 60 days, the Federal Ministry of Trade proposed, and the Government adopted a Decision not to give consent to the wholesale price of natural gas.

Today, the Government also adopted information on further action following such a decision. The Government tasked the Federal Ministry of Energy, Mining and Industry to recommend to the company BH GAS d.o.o. Sarajevo to re-initiate the legal procedure for obtaining consent to the wholesale price of natural gas.