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Reading: Energy Prices for Heat Production have reached record Levels in BiH
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Sarajevo Times > Blog > BUSINESS > Energy Prices for Heat Production have reached record Levels in BiH
BUSINESS

Energy Prices for Heat Production have reached record Levels in BiH

Published: June 11, 2022
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In recent days, energy prices for heat production have reached record levels in the Central Bosnia Canton and in Bosnia and Herzegovina. Increased demand on the world market has led to an increase in exports and prices, and thus shortages of raw materials in the canton.

While firewood is becoming increasingly difficult to buy, pellet prices are drastically higher than last year. Thus, one of the most environmentally friendly energy sources has become almost economically unprofitable. With the aim of stabilizing the market, the Government of SBK has adopted a set of measures, including the announcement of intensified inspections of pellet producers.

While the average price of pellets, according to the Cantonal Ministry of Economy, in previous years was about 280 marks, these days it reaches about 600, with a tendency of constant growth, but also the threat of market shortages. Citizens are finding it increasingly difficult to cope with enormous price increases.

“Seven days ago, I paid 550 BAM per ton. When I entered the warehouse, the saleswoman first told me he was not there. And then I saw that there were 50 tons in the warehouse. It is not for sale, but an even bigger price increase is expected. I have a 400 mark pension, what should I buy, what will I eat? ”Says Alija Svraka.

In a written response, one of the Central Bosnian companies for the production of pellets stated that the reason for the increase was, among other things, higher prices of raw materials and labor costs, with limited production due to lack of raw materials.

Namely, forest companies, as they claim, cannot comply with almost half of the agreed quantities. On the other hand, the company that manages the central Bosnian forests, as the main supplier of raw materials, says that, although with limited production plans and increased demand, due to which they are unable to meet all needs, they have not drastically changed firewood prices, which amount to about 80 BAM per cubic meter.

They believe that there is no real justification for such an increase in the price of pellets.

“We have increased the price by an average of three to four percent, and our costs have increased, given the price of energy, other materials, fuels used in our production process. We believe that such an increase is not justified “, states Suzana Pajic, Executive Director for Economic, Financial and Commercial Affairs of the Central Bosnia Forest Service.

The Cantonal Government is of the opinion that prices are dictated by the European market and the desire of individuals for higher earnings. In order to prevent that, the market inspection of the Ministry of Economy performed controls of companies that produce pellets and determined that some of them form wholesale prices without regulated calculations.

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