Bosnia and Herzegovina, ERS and RiTE Gacko concluded 185 million euros agreement

, SEE Energy News

Representatives of Bosnian state-owned power utility ERS and its subsidiary coalmine and thermal power plant (RiTE) Gacko have signed a contract worth some 185 million euros on joint participation in the electricity market.

ERS Director Luka Petrovic said that the signed contract is about mutual economic relations and joint participation in the electricity market that will last for two years and enable better work of the two companies.

President of the Republic of Srpska (RS) Milorad Dodik, who attended the contract signing, said that RiTE Gacko remains a strategic company in the RS energy system.

He said that solutions will be sought in the coming period to ensure the long-term sustainability of production in the company, as well as securing new equipment for long-term projects and ensuring expert workforce.

RiTE Gacko recorded a net profit in the amount of 5.7 million euros in 2022, compared to a profit of just 280,000 euros in the previous year.

The company’s operating revenues rose by 29.4 % year on year to 88.4 million euros in 2022, while operating expenses rose by 21.6 % to 83 million euros.

Last March, ERS agreed to increase the purchase price of electricity generated by TPP Gacko. Ac- cording to the new agreement, the purchase price of electricity will be increased to 4.7 eurocents/ kWh from initially offered 4.2 eurocents/kWh.

This would mean additional 15 million euros for TPP Gacko in 2022. The agreement is valid for one year, although ERS initially offered five-year contract, which was deemed very unfavorable for the electricity producer.

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