After achieving a record loss of 140 million Bosnian marks (some €70 million) in 2023, the Federation entity’s Elektroprivreda BiH (EPBiH) power company plans to operate positively in the next three years and at the same time invest a lot of money in new energy facilities, which implies an increase in the price of electricity, BiznisInfo.ba wrote.

Among other things, the EPBiH plans to increase electricity prices for households in the Federation of BiH (FBiH).

This can be seen from the document Business Plan of PE Elektroprivreda BiH for the period 2024 – 2026, which will be discussed in the Shareholders’ Assembly, and which BiznisInfo.ba had access to.

The plan foresees the realization of profit in the plan years (2024-2026), based on plan projections and assumptions. In addition, significant borrowing from international and domestic financial institutions is planned, in order to close the financial construction for investments in the planning period, which amounts to over 1.7 billion marks (some €850 million), taking into account the fact that certain projects will extend to the year after that.

The plan envisages the start of construction of several new energy facilities.

Per the available opportunities and mine restructuring plans, investments in coal mines within the EP BiH Concern will continue, in order to ensure stable and sustainable coal production in the long term in the volume required for planning the operation of thermal power plants, not only in the planning period but also in the remaining period of operation of individual blocks.

Following the EP BiH strategic goal, it will significantly increase the share of electricity production from renewable sources

However, the problem is the electricity prices sold to customers.

“During the finalization of this Plan, the valid prices for sales to customers on public supply (at the beginning of January 2024) were used as an input assumption, with the assumption of an average increase of 10 percent from June 1, 2024. years. Also, negotiations regarding the Branch Collective Agreement with Trade Union are announced, the outcome of which may have an impact on labour costs in the planning period,” the document states.

In one part of this extensive document, it is clearly stated that the goal is to increase the price for households as well, not only for the economy, and that efforts will be made to prepare the public for such a decision.

“It is important to convince customers and the public that a gradual increase in energy sales prices, especially for households, taking into account production costs and market conditions, is necessary if we want to count on domestic sources of electricity in the long term, which will be more environmentally and climate-friendly than the existing ones,” the document states.

As stated, the largest part of the planned sale of electricity to end customers refers to the category of Households, where an increase in tariff rates for energy is planned for 2024.

It is certain, the document adds, that in the next 2-7 years, the payment of fees or similar fees for CO2 emissions from thermal power plants in BiH will be introduced, and it is up to the State and the EP BiH to ensure that this happens gradually and with as few costs as possible.