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Sarajevo Times > Blog > BUSINESS > How BiH got into Situation where Electricity Supply is threatened?
BUSINESS

How BiH got into Situation where Electricity Supply is threatened?

Published December 1, 2023
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The Government of the Federation of Bosnia and Herzegovina has declared a state of threatened security of electricity supply, at the proposal of the Ministry of Energy, Mining and Industry. Reason –  extreme price increase and insufficient supply. The crisis on the market will cause the formation and control of new electricity supply prices.

Are there justified reasons for increasing the price of electricity? How is it possible that our electricity supply is threatened if we produce, supply and export it to the countries of the region.

Interference of politics in work, accumulation of administration, irrational and insufficient investment in mines, low utilization of renewable energy sources – these are just some of the reasons that influenced Elektroprivreda BiH from a company that was synonymous with success for years, to become a loser. This is how the profession looks at the situation in this public company.

“Political management, instead of what should have been expert management. “In the previous five mandates, five directors from five different parties managed Elektroprivreda BiH”, says energy expert Nihad Harbaš.

The story of the price increase has been announced for some time. But the question is how we got into a situation where electricity supply is threatened. From electricity for export to endangered production. The profession comments.

“The expected result of the absence of large investments and larger investments in new production capacities, if you take into account all the problems they have with the mines and if you take into account everything related to CO2 taxation. We can say that what is missing and what should be worked on seriously and more significantly are investments in renewable energy sources”, emphasizes prof. Ph.D. Mirza Kušljugić, professor at the University of Tuzla.

Our interlocutors note that the mines within the Elektroprivreda Concern have never been restructured, which had a negative impact on production, which often could not meet the contracted quantities.

“The mines have never been restructured in these ten years. Work has never been separated from idleness – a miner who is on pure ton, on pure gigajoule from all those who are connected to that miner. Money was being spent in a bottomless pit,” says former EPBiH director Amer Jerlagić.

“This led, among other things, to the fact that we did not have the development of new capacities in the production of electricity. On the other hand, there was a collapse of what is used to make electricity, which is predominantly mines, that is, coal,” adds Harbaš.

What is certain is that the Administration of this company and the Government of the Federation, as well as businessmen, have a difficult job ahead of them. How to reduce losses and please everyone.

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