Higher electricity prices possible in Federation BiH on higher incentive fees

The incentive fees for renewable energy sources and cogeneration plants should be increased, said the new head of the Operator for renewables and cogeneration in Federation of Bosnia and Herzegovina.

The Government of Federation of Bosnia and Herzegovina (FBiH) is expected to decide on amount of incentive fees aimed at boosting electricity production from renewable energy sources and in cogeneration plants by the end of the year.

The Operator for the Renewable Energy Sources and High-efficiency Cogeneration (Operator za OIEiEK) is licensed to propose changes in the incentive fees, as the provider of the technical support to the FBiH’s Ministry of Energy and Mining.

Consumers bear the burden of increasing participation of the energy from the renewable sources, reminded the acting director of the Operator OIEiEK Boriša Misirača. He called for an increase in fees, which are calculated with monthly electricity bills. He argued that FBiH consumers have been paying the lowest fees in Europe, in amount measured in fractions of the Bosnian Convertible Marka (BAM).

“An average four-member household in FBiH supports electricity production from RES with an average of 0.30 pfennigs per month, based on the 300 kilowatt-hour (KWh) consumption. This is the consequence of the lowest RES incentive fees not only in the region but throughout Europe, which amounts to 0.001 KM/KWh,” explained Misirača.

For instance, consumers in the Republic of Srpska, an entity of Bosnia and Herzegovina, pay monthly incentives worth 0.025 KM/KWh. “If the current fee is doubled, the difference in a monthly bill will be 30 pfennigs,” according to Misirača.

He also reminded that Bosnia and Herzegovina is expected to fulfil its obligations from the agreement on the Energy Community for South-Eastern Europe, and in accordance Stabilisation and Accession Agreement with the European Union. This would help further harmonisation of the legislation with the EU Acquis communautaire, as well as achieving goal of 40 percent share of the RES energy in the total energy balance, said Misirača, who was appointed to head the Operator on December 8.