Under Reform Agenda, BiH commits to aligning electricity prices with market

By adopting the Reform Agenda, Bosnia and Herzegovina committed to liberalizing the electricity market, aligning electricity prices with market levels, and supporting the green transition through renewable energy sources and energy efficiency.

The Council of Ministers of Bosnia and Herzegovina adopted the Reform Agenda, after a delay longer than one year, and submitted it to the European Commission. It made the move just as the deadline, set by the commission, was about to expire on September 30.

If it failed to adopt the document, BiH would have lost EUR 108 million out of a total of EUR 976.6 million that was allocated to the country under the Growth Plan for the Western Balkans, worth around EUR 6 billion overall. Due to the delay, BiH already lost EUR 108 million in July.

The first step in price harmonization is to conduct a study on different scenarios

One of the obligations from the Reform Agenda is to align household electricity prices with market prices in the region and the European Union by 2027, domestic media reported.

The measure is aimed at making price formation more transparent and integrating BiH better into the regional and European electricity markets.

The first step in price harmonization would be to conduct a study on different scenarios for price deregulation for households. It will serve as a tool to plan price increases. The study is expected to be completed before the end of the year.

The current price of electricity in BiH is below ten eurocents

According to the latest Eurostat data, for the second half of last year, the price of electricity for households in BiH was below ten eurocents. Prices in the European Union ranged from ten eurocents in Hungary to 40 in Ireland.

The European Commission is required to assess the Reform Agenda and approve it if it matches expectations. Payments are directly linked to the measures that governments in the region vow to implement.

Of note, in early July, the European Commission proposed the first tranches from the support package, worth EUR 87.7 million in total, for projects in Albania, Montenegro, and Serbia.