It is realistic to expect that the price of gas in the Republika Srpska will increase by 10% from July 1, confirmed the company “Gas-Res”.
“According to my modest estimate, gas prices will increase in the third quarter compared to the second quarter, but that should be a maximum of 10 percent,” said Ljubo Glamocic, director of Gas-Res.
He adds that the amount of the increase will depend on the price of oil on the world stock market. He also said that the new contract for the supply of natural gas, which the company signed with Russia’s Gazprom Export, and which is valid until the end of the year, did not change the conditions under which the price of this energy source will be determined.
According to Glamocic, the price of gas in Serbia was determined according to the same principle, but he admits that the announced increase in the price of this energy source in RS will be higher than in Serbia, which agreed that the price in the next three years will be 340-350 dollars per 1,000 cubic meters.
“The same principle is for determining gas prices for both Serbia and Republika Srpska, but we must keep in mind the difference, that we have an additional cost of transport through the transport gas system of Serbia. And that price, depending on the leased capacity and costs, is around 25 euros at 1,000 cubic meters, so our price in relation to the one in Serbia is somewhat higher precisely for these reasons, “said Glamocic.
Almir Becarevic, an energy expert, agrees that the increase in gas prices from July is inevitable.
“It will be increased by somewhere between 10 and 15 percent. There is no dilemma here,” Becarevic points out.
He explains that there is a significant difference in the contracts, which refers to the quantities, which were signed with “Gazprom Export” by “Gas-Res” and “Energoinvest”, which supplies gas to the Federation of BiH.
While the RS says that sufficient quantities of gas have been provided by the end of this year, Becarevic says that the daily quantities ordered by the Federation of BiH will not be enough.
“Thus, the question now is how additional needs will be addressed, ie what gas prices will be if the supplier decides to buy additional quantities, because the leased capacity of about 840,000 cubic meters is not absolutely sufficient for the Federation of BiH, especially for the city of Sarajevo,” Becarevic said in a statement to “Nezavisne novine”.
Asked what the forecast is for the last quarter of 2022 in terms of gas prices, our interlocutors said that it was too early to talk about it, but that the continuation of the conflict in Ukraine and disturbances on the world stock market will bring new price increases without any doubt.
Although the government in Republika Srpska claims that there will be no increase in the price of electricity, the bills could be higher from next year due to a possible increase in network fees. Namely, all five distribution system operators in the RS have submitted a request to the RS Energy Regulatory Commission to increase the prices of network fees, which participate in the electricity bill by almost 50 percent.
All five distribution companies in the RS, including Elektrokrajina, have submitted a request for a tariff procedure to determine the fee for the use of the distribution network. They cite as a reason the enormous increase in the price of raw materials for network maintenance and the fact that the last tariff procedure was carried out in 2015. The Regulatory Commission confirmed that the requests are being reviewed and that they apply to all categories of consumption.
“We cannot say unequivocally how much our Regulatory Commission will determine our justified costs, because the prices of materials have been increased by 30-150 percent, depending on the type of material we use to maintain the network,” said Predrag Klincov, spokesman for ZP Elektrokrajina JSC. Banja Luka.
“In accordance with the Tariff Methodology, the Regulatory Commission will, after reviewing the submitted requests and documentation, as well as possible amendments, make a decision on conducting the tariff procedure and holding public hearings, and issue a public notice. “, states the Electricity Regulatory Commission of RS.
Network charges account for about 50% of the electricity bill. This means that if an increase in this fee is approved, regardless of the price of electricity, the bills will be higher. Everything is ready for the price increase, although the government does not want to admit that before the elections, points out the president of the Committee for Economy in the RS National Assembly.
“There will be no increase in the price of electricity coming from production companies from the EP RS system, but the bills of citizens and insults will be significantly increased due to the increase in network charges,” said Maksim Skoko, SPS vice president and chairman of the NARS Economy Committee.
“You know that the regulator is an independent body, independent of the government and the ministry, and we cannot influence it. But I am sure that the regulator will seriously take care that this type of fee is not increased at the moment, and it is very important for us. that the price of energy does not increase “, says Petar Đokić, Minister of Industry, Energy and Mining of RS.
If approved by the Regulatory Commission, the new tariff procedure would apply from 1 January 2023 and would be valid for the next three years.
“Controlled electricity prices for households are questionable, given the drastic increases in wholesale markets, but also if we take into account that our country has joined the single European market, ” told Sanela Pokrajcic, the president of the EnergyRegulatory Commission of the Federation of Bosnia and Herzegovina (FBiH).
”Households, as end customers, are very protected, although universal service costs much more,” she emphasized.
“So, wholesale electricity prices are not transposed into retail prices, if they were, it would mean an enormous increase for every customer, including households. How will the state find solutions, and given that we are committed to the single market, we will see how we would be able to actually keep the prices under control, ” explained Pokrajcic, BHRT writes.
As she said, the unstable situation in the electricity sector in the world is very much felt in BiH.
“The biggest pressure is on the electric power companies, especially if we see that the thermal power plant blocks are being shut down, and drought can be expected, I believe that then we will have to think differently. From a country that is a major exporter of electricity, we can easily come to the conclusion that we will not have enough energy ourselves. Then, of course, we are forced to buy that shortcoming, “ Pokrajcic added.
It is crucial for BiH to have a secure electricity supply and to be energy independent.
According to Pokrajcic, the idea of continuing the work of thermal power plant blocks in Tuzla and Kakanj did not meet with the approval of the European Energy Community.
“As far as I have heard, that idea was not received with enthusiasm. The Energy Community is not happy to receive the news about the continuation of units 5 and 6 in Tuzla and Kakanj, but it is our country that needs to find its interest, “Pokrajcic mentioned.
