Bosnia and Herzegovina’s state-owned power utility Elektroprivreda BiH (EPBiH) has recorded a BAM 50 million (EUR 25.6 million) financial loss for the January-September period. The company is expected to remain deeply in the red territory for the entire year.
EPBiH said that the BAM 50 million (EUR 25.6 million) loss was the result of disruptions in the electricity market, a significant reduction in the volume of sales on the open market, and a lower-than-estimated income from trade.
The main causes are the decrease in the supply of coal from mines within the EPBiH Concern from 2020 until September of this year and the increase in the price of coal and its transportation costs, the company said.
Also, power output and planned surpluses of electricity were both reduced. The sale of surpluses is important because it compensates for the difference between production costs and the public supply sales prices.
Electricity consumption is showing a rising tendency
Electricity prices for public supply, which have not changed from January 1, 2015, were the main factor for the increase in electricity use for heating and cooling, alongside the company’s guarantees that supply would be stable, the statement adds.
The trend continued even during the global energy crisis and the unrestrained rise in the prices of other energy sources. EPBiH said electricity consumption is showing a rising tendency due to low prices of public supply and argued that, according to Eurostat, they are among the lowest in Europe.
The financial results were also affected by the decision of the Government of the Federation of BiH to limit the increase in electricity prices for consumers on the open market from the previous year to 20%. The measure came into force in January 2022, the utility noted.
Ministry: EPBiH is expected to suffer a large loss in 2023
EPBiH pointed out that back in February it informed the government and the Federal Ministry of Energy, Mining and Industry of its projected financial results for the period until the end of the year, and that it listed the factors.
Of note, Federal Minister of Energy, Mining and Industry Vedran Lakić met with the management of EPBiH a week ago. EPBiH is expected to suffer a large loss in 2023, the ministry subsequently said.
The Federation of BiH is the larger of the two entities that make up Bosnia and Herzegovina. The other one is called the Republic of Srpska.