Bosnia and Herzegovina, Federal Government capped electricity price increase at 20 %

, SEE Energy News

The House of Representatives of the Parliament of the Federation of Bosnia and Herzegovina (FBiH) adopted the amendment to the Law on Electricity.

The amendment stipulates that the Federal Government must intervene and limit the growth of electricity prices to commercial consumers if these prices increase by more than 20 % compared to the previous year. The original proposal in was that the parameter be 50 %.

The Federal Minister of Energy, Mining and Industry Nermin Dzindic said that the amendment will cause difficulties in the operation of power utility EPBiH in 2022. However, the proposal that the Federal Government should provide support to EPBiH in its budget for next year did not pass.

Earlier in December, some commercial consumers in the Federation of Bosnia and Herzegovina received new electricity supply contracts from power utility EPBiH with the new, significantly increased electricity prices. Some of the consumers received contract offers with prices increased up to three times compared to previous ones. Namely, for lower tariff, price increased from 4.6 euros/kWh to 13.6 euros/kWh, while for higher tariff the price jumped from 6.7 euros/kWh to 20.2 euros/kWh.

The Federation of Independent Trade Unions operating in the Federation of Bosnia and Herzegovina assessed that there is no justification for any decision on a significant increase in the price of electricity in this entity, warning that if the price of this energy source increases, thousands of workers will be on the streets.