FBiH Government declares a state of endangered electricity supply security for 2024

(Patria) - The Government of the Federation of Bosnia and Herzegovina, at today's session in Sarajevo, upon the proposal of the Federal Ministry of Energy, Mining and Industry, adopted a Decision declaring a state of endangered electricity supply security for 2024, due to the extreme increase in prices and insufficient supply of electricity on the market.

In a state of endangered supply security, the Government of the Federation of BiH will prescribe the method and conditions for forming and controlling electricity supply prices.

This decision enters into force on the day of its adoption and will be published in the Official Gazette of the Federation of BiH and in the media.

As stated in the explanation, the adoption of today's decision creates a legal basis for the Government of the Federation of BiH to act in accordance with the provisions of the Law on Electricity of FBiH, i.e., in a state of endangered supply security, it can introduce special measures by which it will prescribe the method and conditions for forming and controlling electricity supply prices.

Namely, according to the analysis of JP Elektroprivreda BiH d.d. - Sarajevo, in accordance with current market conditions, the average price of market electricity supply for 2024 would amount to 141.53 euros/MWh,
i.e., the average increase would be 87 percent. Without the application of any form of electricity supply price limitation, over 96 percent of current electricity customers to whom previous price limitation decisions have been applied would have an increase in electricity supply prices of over 60 percent. Considering this, today's Decision also aims to protect customers who are supplied with electricity within the market supply service from extreme price increases.