Bosnia: Retail electricity market trends, consumption stats

, SEE Energy News

In 2014, total electricity consumption in BIH amounted to 12,210 GWh, that is, 2.8 % less than in the previous year, which continued the decreasing trend from 2013 when annual consumption was 0.5% lower. Customers connected to the transmission took over 2,410 GWh or 8.1 % less. 9,481 GWh was taken in the distribution network, which is 0.9 % less than in the previous year, of which 8,463 GWh pertains to take-over by end customers and 1,018 GWh to distribution losses. Total sale to customers in BIH decreased by 1.9 % amounting to 10,873 GWh.

The average selling price for tariff customers and customers supplied by public suppliers amounted to 0.0688 €/kWh which is a 0.3 % reduction. Total value of sale to these customers amounted to €696.38 million, which is €7.52 million, or 1.1 %, less than in 2013.

Although tariff rates for households in 2014 remained unchanged, the average selling price for this customer category increased by 0.2 % amounting to 0.069 €/kWh, which is a consequence of changes in consumption patterns.

Total business results of the companies in the sector are more modest in comparison to the previous year considering reduced generation by hydropower plants which is most cost-effective. This situation had a positive impact on business performance of Elektroprivreda HZHB in particular which reported a record profit, while Elektroprivreda RS encountered a sales decrease in the regional market due to reduced generation by thermal power plants. Eventually, total sale of electricity to domestic customers and those in the region amounted approximately to €870 million, which is €51 million less than in the previous year. Notwithstanding this, it is estimated that the profit of the power entities in BIH amounted to approximately €17.9 million.

Deregulation processes continued in the retail market. Changes were reflected in decisions of the competent regulatory commissions not to issue tariff rates for those consumption categories which cannot be regulated any longer pursuant to the adopted and applicable legislation on market opening. With the end of 2014, regulation of supply tariffs for all customers was abolished except for households and small customers (commercial customers, that is, other consumers at 0.4 kV), while the practice of regulating tariffs for distribution services was kept. Since 1 January 2015, all customers in BIH have the possibility to choose their suppliers on the market. Customers that do not chose their supplier on the market, may be supplied by public suppliers at public supply prices, while households and small customers may be supplied within the universal service.

The number of electricity customers in BIH was steadily increasing, and exceeded 1.5 million at the end of 2014. In the process, a total number of customers during the year increased by 15,146, with 14,739 customers belonging to the category of households .The BIH retail electricity market is still characterised by the domination of public power utilities, which traditionally supply 1,505,015 customers, each in its own (de facto but not de jure) exclusive geographic area.

In 2014, Aluminij Mostar was supplied on the market as in the previous period, purchasing 722.26 GWh for self-consumption from suppliers on the market (GEN-I Sarajevo and Proenergy Mostar), which is 45.4 % of its consumption. Since November 2014, B.S.I. Jajce meets the major share of its energy needs on the market (EFT Bileća) and purchased 33.67 GWh for two months. To sum up purchase in 2014, 7.0 % of total energy taken over by end-customers in Bosnia and Herzegovina was purchased on the market. , transmits