The losses of Elektroprivreda Bosnia and Herzegovina in the amount of 50 million BAM this year clearly raise the question of how Elektroprivreda will overcome its huge debts, but also pay off multimillion-dollar loans for the destruction of the failed Block 7. Employers strongly opposed the increase in electricity prices and believe that it would lead to unforeseeable consequences to the economy of Bosnia and Herzegovina. On the other hand, citizens point out that they no longer know where to allocate money for another price increase.
Daily announcements that due to the multi-million dollar losses of Elektroprivreda BiH could lead to an increase in the price of electricity, clearly indicate that there is no clear government plan in BiH, that in a sea of price increases and inflation, even one price increase bypasses citizens and businessmen.
Citizens point out that they are worried.
At the beginning of October, Federalna TV sent a request to Elektroprivreda BiH to explain how they will overcome the debts that originally arose due to the loan funds that were invested for the construction of Unit 7 of the Tuzla Thermal Power Plant, a project that failed. They have never got an answer. Also, after a month, they again sent a request to overcome the debt of 50 million BAM, since the Federal Minister of Industry also requested this from Elektroprivreda, but there is no answer again. There are many more questions that remain open, because coal is getting less and less, which also weakens the production of electricity, and there is no clear strategy on how to save the energy sector at all.
“Practically, energy from coal, which is now far more expensive than energy from renewable sources, will be unprofitable on the market, so Elektroprivreda will go bankrupt. Unfortunately, Elektroprivreda is also aware of this, but due to these political and populist circumstances, it simply does not have the courage to let citizens and miners get acquainted with that truth. The problem is that in the end the citizens will pay for all these mistakes. All those people who have made decisions that will cost this country millions will probably get a seat in the parliament and continue to live, paratizing on the budget. And the citizens will pay back the debts that they worked hard for,” emphasizes Denis Žiško from the Aarhus Center of Bosnia and Herzegovina.
Elektroprivreda BiH has enormous problems, above all with the mines, which this year did not have anywhere near the amount of coal that Elektroprivreda would need to achieve six and a half gigawatt hours. If electricity prices rise, the consequences for the economy could be very severe.
“God forbid it happens. Because then we can expect an increase in the price of all other products, because we know that electricity is the second or third cost in most businesses,” says Amer Jerlagić, former director of Elektroprivreda BiH.
“People want to increase the price of electricity and they have to find the culprit. They find it in the former government. Why didn’t we increase the price of electricity, if we were doing badly. We didn’t. They want to increase it, because they need income. Just as they want income through minimum wages and secondly. So they need income, because they have prepared expenses,” says Fadil Novalić, former prime minister of the Federation of Bosnia and Herzegovina.
Elektroprivreda BiH should by no means base its poor business results on the rise in the price of electricity. It is crucial that they enter the restructuring process, setting up quality, not political management.
“We have to talk more and more about energy efficiency if we want to continue with this electricity consumption. Otherwise, I’m afraid, maybe not next year, but I’m afraid that citizens will have to give up such models very soon”, says economic analyst Damir Bećirović.
Instead of public companies, ie EP BiH, overcoming problems with positive economic changes and growth, they use them for political tricks, disagreements and quarrels. And then those problems end up on the shoulders of an already broken Bosnia and Herzegovina’s society.
