Bosnia/Republika Srpska:Stabile production and revenue increase of RS Power utility company

Published on 1. October 2014., SEE Energy News

‘’Electric Power Industry of Republika Srpska’’ /ERS/ became from the big loss-making company, as it was up until 2008, a company which is constantly increasing its electricity production and income, thus becoming the generator of Srpska’s development, and more of the entire region, said the Executive Director for Economic and Financial Affairs in ERS, Blagoje Supic.

As reasons for such positive business results, aside from good system management, he stated an increase in operational readiness and bringing the utilization of thermal power plants to a higher level.

Comparing 2001 and 2013, Supic said that in 2001 ERS was a loss-maker, producing 4.700 gigawatt hours of electricity, but twelve years later it generated 6.400 gigawatt hours, that is 1.700 gigawatt hours more, which is equal to a generation of one thermal power plant.

‘’The result of that is also the increase in income from 402 million KM in 2001, to 707 million KM in 2013, with lowest electricity price in the region’’ said Supic for Srna, stating that electricity price for households in Srpska is lower than in Serbia.

Supic recalls that the loss in 2001 was 134 million KM, while in 2013 ERS made a profit of 53 million KM.

‘’The cost price in thermal power plants is also very important, and in 2001 it amounted 0, 13 KM per kilowatt hour, while in 2013 it was reduced to 0, 08 KM’’, said Supic, adding that until 2001, the mines and thermal power plants were ‘’factories of costs’’, because third parties were making costs, which is not the case anymore.

Talking about distribution losses, Supic says that in 2001 they were 26%, while in 2013 they were reduced to 13%.

‘’The best evidence of this company’s capability to cope with all temptations, is the success in preserving the stability of electric energy system under conditions of natural disasters in the last two years – floods, drought and severe snow precipitation’’ highlighted Supic adding that the last example of unrecorded floods in May is a confirmation of his words.

He noticed that ERS responded to all challenges in that situation, showing its ability to act professionally, responsibly and without delay in such extreme situation, so ERS, aside from the assistance in manpower and equipment, set aside 1.100.000 KM for flooded people in Srpka, and also paid 5.500.000 KM for reparation of damaged energy capacities, respectively distribution network and transformers, out of The Solidarity Fund, which exists within ERS.

Supic also cited the great significance of ERC for Herzegovina, making Herzegovina, as he says, the biggest construction site in Republika Srpska.

He recalled that the realization of a capital project ‘’Gornji horizonti’’ (Upper horizons, prim.prev. ;)) is in progress, and that the construction permit was obtained for building of hydropower plant ‘’Dabar’’ (The beaver) with 160 megawatts of installed power, and the supply tunnel which will operate within this project.

‘’This hydropower project will have multiple significance for municipalities Nevesinje, Bileca and Berkovici, and will be a flywheel of economic development of the whole Herzegovina, and beside energy and agriculture effects, the roads and water supply infrastructure will be fixed as well’’.

This way, he added, the project which has been waited for in Herzegovina for half a century will be brought in the phase of total completion, to the satisfaction and benefit of citizens and economy of the whole Herzegovina.

Supic noticed that since 2008 ERS didn’t lose a single lawsuit, reminding about completion of the arbitration process which lasted for 7 years in the Arbitration Court in Vienna, which rejected the compensation claim of 58.388.522 EUR from Czech Electric Power Company (ČEZ), so that dispute was 96% resolved in favor of ERS.

‘’Confirmation that the decision of the Arbitration Court in Vienna is a major success of ERS is also the lawful completion of the procedure under the alternative claim from PIFs for damage allowances of 113 million KM, which was withdrawn by small shareholders’’, said Supic and recalled that less than a year ago, ERS won also a 108 million KM dispute with the Company for the production of computers and computer programs ‘’SB soft’’ from Belgrade.