Announcements from the Elekroprivreda Bosnia and Herzegovina (BiH) regarding the introduction of so-called block tariffs have concerned citizens, particularly the most vulnerable ones such as pensioners, workers, and users of soup kitchens and childcare centers. Experts argue that the decision needs to be revised, and savings should be achieved through a different approach.
Block tariffs are a model that will shift the actual burden onto households and families that consume electricity while neglecting vacant weekend homes, apartments, and houses. Therefore, Admir Cavalic recently submitted an initiative to the Regulatory Commission for Energy in BiH and the Federal Government to withdraw this proposal from of Elektroprivreda, deeming it discriminatory.
“Let me mention one paradox. In the Republika Srpska (RS) Entity, which introduced this measure last year and was scrutinized by the Constitutional Court, the lower limit is 500 kilowatt-hours. In the Federation of BiH (FBiH), it’s 278, which means that Elektroprivreda assumes that citizens in the FBiH mostly spend up to 50 BAM monthly, while citizens in the RS spend up to 100 BAM. It’s impossible that citizens in the RS cook more, bathe more, and have higher consumer habits than citizens in the FBiH,” said Admir Cavalic, a representative in the Parliament of the FBiH.
From an economic standpoint, block tariffs will not bring savings, according to economist Professor Dr. Damir Becirovic. Electricity is not a luxury but a necessity upon which we all depend. What is most concerning, however, is that the weakest category of our society will fall under the red tariff.
“What is particularly problematic is that many significant facilities that are socially significant, such as soup kitchens, childcare centers, and religious buildings, fall under this red tariff. So, there will be an effect on the population, certainly an additional burden in the context of fighting inflation,” said Professor Dr. Damir Becirovic, an economic analyst.
The loss of the Elektroprivreda BiH in 2023 was 140 million BAM, caused by accumulated losses and failure to take remedial measures in previous years. This is the justification of Elektroprivreda BiH for the introduction of block tariffs, meaning that all the cost of losses will be borne by citizens, no one else.
