Two Bosnian municipalities suing Croatia's power utility for €10m

The claim is based on 2021 amendments to the Federation entity's law on hydropower facilities, which introduced higher compensation for water use from Busko Lake, channelled through tunnels to HEP's Orlovac hydropower plant.

Petar Galic, an MP of the "Hrvatski Nacionalnog Pomak" party ("Croat National Headway" in an unofficial translation) and co-author of the amendments, said HEP has failed to apply the new provisions for four years.

"By refusing to pay the legally mandated fees, HEP is depriving local communities of significant funds," he said, estimating the debt at over €10 million.

Tomislavgrad's share is estimated at €6.6 million and Livno's at €3.4 million. "For HEP this is a drop in the ocean, but for us it's crucial for investment and demographic projects," Galic said.

A Livno court has held several preparatory hearings and declared itself competent to hear the case. The municipalities filed suit to prevent the claims from expiring, Galic added.

He noted that the two other BiH utilities, Elektroprivreda Hrvatske zajednice Herceg-Bosne and Elektroprivreda BiH, have been complying with the law and paying higher fees. "I believe HEP, with support from the Croatian government, will finally start honouring these obligations," Galic said.