Financial losses, electricity price increases, and debt notices. For the past year, only negative news has come from the Elektroprivreda Bosnia and Herzegovina (EPBiH) building for citizens and society. Last year, the company made a loss of 331 million BAM. Will BiH, once an electricity exporter, become a country dependent on others?
From a company with surpluses to a “lossmaker”
EPBiH once had surpluses of 2.000 gigawatts of electricity, but last year it had only 52 gigawatts. The mines produced almost two million tons less than in 2009. As a result, the Zenica Mine was closed. One of the management’s moves was to raise electricity prices by 10%.
“Hell, that’s what happens when the electricity goes out, everything goes out. I knew that they would charge us for what they gave us during the winter”; “The easiest way is through the people, to put it mildly. Like in feudalism: take from the people.”
However, the director of EPBiH believes that this is necessary in view of the rise in other prices that have affected the company’s expenses.
Sanel Buljubasic, director of EPBiH:
“The price adjustment, when implemented, will generate revenue of 2.3%, which does not solve the problem of the 331 million loss. We have to turn to business and solve it. These are not huge millions that EPBiH will earn, it is just an adjustment to input costs. If this had been done before, at 1 or 2% each, we would be in a better position now.”
A Solar Power Plant in Gracanica Mine, Solar Power Plants in Banovici and Breza
The mines must be self-sufficient and produce enough coal, says Buljubasic. Renewable energy sources are also seen as a solution. Thus, in the long-term investment strategy, a solar power plant will be built on the former landfill of the Gracanica Coal Mine, while a solar power plant will be set up on the landfill of the Banovici mine, as well as on the landfill of the Breza mine. The management of EPBiH believes that nothing can be done without hydroelectric power plants. This will be much more difficult, given the social resistance.
Igor Gavran, economic analyst:
“The problem is that electricity production has decreased, that they have relied on exports through intermediaries without trading directly, which means that some intermediaries make huge profits and EPBiH misses out. Instead of solving internal problems, for example, by registering for direct export so that the money stays with them, they have shifted the burden onto consumers.”
The negative impact is yet to come, and analysts believe that many will take the opportunity to raise other prices unjustifiably. The consequences will also be felt by food producers in BiH.
Muris Mujanovic, farmer:
“In the last two or three years, there has been a massive shutdown, especially of small and medium-sized farms, which are the basis of the economy. As a result of the latest price increase and other problems with late payments and the increase in the price of inputs, we can only expect an exodus.”
