A new wave of price increases has already begun; a second one is looming.
The previous government, during the peak of price increases, told citizens to buy 37% less oil, while the current government describes the use of air conditioning and electric heating as a luxury. Clumsy and arrogant explanations have no end, just like the rise in prices.
“The problem is that everything is justified with unsustainable arguments. You run a company politically, not economically. All managements are appointed politically. Public procurements have been assessed as problematic for years, and there is talk of very harmful procurements. Services are paid for more than justified. The employee structure is unjustified. There is talk of unjustified incomes and a large number of employees who do not meet the company’s needs,” explains Igor Gavran, economic analyst.
The increase in electricity prices after that, Gavran concludes, will be used as justification for price increases in all other areas, and the only ones to benefit will be the government itself, once again collecting record revenues from VAT.
A meeting was held yesterday at Elektroprivreda Bosnia and Herzegovina (EPBiH). Representatives of the “Three Plus” Family Association requested precise information on the new prices, as well as benefits for large households.
“One tariff has been accepted, which is 350 kilowatts at the lowest price… when the price increases, the first tariff and the rest of the possible kilowatts are added up – for families, that could only be a few BAM,” points out Mustafa Vlahovljak from the “Three Plus” Family Association.
Block tariffs have been proposed along with blue, green, and red bills. The price increase will be from 4 to 8 percent. Previous price increases and low wages are the key reasons for people leaving the country. For example, ten years ago, there were about 60.000 families with three or more children living in the Federation of BiH (FBiH) entity. Today, there are 30.000. They hope for subsidies to pay for more expensive electricity.
“These consumer basket calculations multiply for 3+ families. We need 4-5 thousand BAM for a normal life. I’m not talking about vacations or some luxury, but about existential things,” says Nedzad Prazina.
In addition to paying more expensive electricity from autumn, residents of Canton Sarajevo (CS) have been paying more for water since yesterday, as well as for a daily public transport ticket. With a pension of 599 BAM and current prices, the elderly are often forced to seek help from their children, and many also look for a meal in soup kitchens.
According to the website for monitoring the cost of living, Numbeo, a family of four needs 4.235 BAM per month. It is stated that now a meal in a mid-range restaurant for two people costs between 40 and 100 BAM. Basic utility costs are around 340 BAM. Monthly rent costs from 400 to even 1.500 BAM. The average salary is now 1.500 BAM, N1 writes.
