Companies in FBiH request 20% cap on increase in electricity prices for 2023

The Association of Employers of the Federation of Bosnia and Herzegovina asked the Government of the Federation of Bosnia and Herzegovina to limit the increase in electricity prices for businesses to 20% for 2023 as soon as possible.

Businesses want the Government of the Federation of Bosnia and Herzegovina to cap the potential increase in tariffs to 20% like it did late last year for 2022, at the onset of the energy crisis. The decision was incorporated into the Law on Electricity in the FBiH.

The association is asking for a meeting with the FBiH government to urge it to repeat the move. It is necessary and urgent to determine the electricity price for businesses for 2023 by the end of the year, the association said in a letter to the entity government.

Firms insist on urgency to prevent problems from last year

It proposed a meeting to be held by the end of the month to timely prepare and adopt the decision, and to have in in force on January 1.

Businesses said they want to prevent last year’s issues from repeating. Due to the delay in the adoption of the price cap, many companies were forced to pay extremely high bills for the first seven days of January 2022 because they were supplied under the last resort scheme.

A timely decision would enable companies to receive and sign electricity supply contracts on time.

EPBiH is importing a significant amount of electricity

The association said the price cap enabled firms in FBiH to save jobs, production, and competitiveness in foreign markets. It led to record growth in corporate tax collection, said the association.

The group said the move preserved the stability of the electricity sector in the FBiH and the performance of Elektroprivreda BiH (EPBiH). The state-owned power utility thus continued to supply domestic companies regularly and export significant amounts of electricity, the statement adds.