Bosnia and Herzegovina is forced to buy electricity that exported the electricity, while experts and official government documents warn of potential energy sector collapse.
In the first five months of this year, BiH consumed more than EUR 151 million on the import of electricity, according to the data of the BiH Agency for Statistics.
Of the three electricity producers, Elektroprivreda BiH, which is owned by the Entity Government of the Federation of BiH, was registered in the past two years a loss of 197.1 million euros.
The authorities, therefore, proposed an increase in the price of electricity for households up to eight percent in August last year – and awaiting the regulator approval to citizens with the announced increase in heating, water, public transport and universal inflation.
“While there were surpluses could be achieved in the foreign market and thus’ cover the price for households that is under the production currently, and that moment has come to the Radio Free Europe Ognjen Markovic, Energy Consultant and Former Director of the Transmission System Operator in BiH and Kosovo.
The electricity companies submitted information on the situation in these companies from the Government of the Federation of BiH, which most of which operates in red “in the past five years.
In the Government Report, in which it has been insighted, it is indicated that the crisis that faces poor management and insufficient investment in the past, and that the decomposing outdated infrastructure, with complete dependence on Russian gas, is threatening the energy security of Bosnia and Herzegovina.
Ill electricity of BiH is running out of money
Elektroprivreda BiH since December 2022. year cannot settle the ultimate consumption from their production and everything in a month or two per year happens that the remaining surpluses for market sales, according to the Government Report.
Due to insufficient delivery of coal from their own mines, the lodging of consumption, Elektroprivreda BiH has only over the past winter, from October 2024. by February 2025. year, about 65.5 million euros of electricity.
They state that electricity procured at a gathering price from the one by which they delivered it to households, as the tariffs dictate the government regulator.
From Elektroprivreda BiH, I would have warned that if they fail to ensure additional money in the accounts could become illiquid in the second half of 2025. Years.
“Looking the balance of cash and time deposits with the end of 2024. year, it is quite clear that it would already be [2024.] The EP BiH was illiquid that the paid advance for the Block 7 and Tuzla was returned, “the information sent to the government.
It is about 127 million euros of the advance paid to the Chinese consortium in the failed work of the construction of a new thermoblock.
II from Elektroprivreda BiH information for the Government of the Federation of BiH stated that the projections for next two years are not promising.
Moreover, they state that the “questionable possibility of credit borrowing for the needs of funding for the regular business that will be necessary for the survival of liquidity in the coming period.
Elektroprivreda BiH has produced significantly higher electricity by 2019 than domestic needs. This enabled a lucrative export that, at the same time, helped maintain low prices for households.
Since then, electricity production is constantly falling.
Compared to the period from 2011. by 2018. Today, thermal power plants today produce almost 30 percent less electricity, while total consumption grows through an average rate of three to five percent per year. Thermoblocks are on average over the age of 40, their strength decreased and fainted more often, and they consume more coal.
Today, electricity consumption in the Federation of BiH exceeds domestic production by 11.7 percent, forcing it to import to avoid darkness.
The crisis deteriorates the situation in mines.
Elektroprivreda BiH has since 2009. until 2024. invested more than 383m euros in seven of its mines to maintain their liquidity.
“The expected effects of this investment was absent, as well as financial support in the process of restructuring the mine”, state in the report six years later.
While the number of miners has fallen, labor costs continue to grow, encourage higher salaries and other rights.
Elektroprivreda BiH has requested private mines and market a purchase of 600,000 tons of coal from other mines in the country or abroad, because it is generally recorded in the falling parameters and productivity.
In some mines, labor costs exceed 90 percent of realized income.
Taxes and receipts in BiH benefits must be paid with salary payments, but mines are exempt from the law and owes dozens of millions of euros on the basis.
The Government and Elektroprivreda from its budgets pay unpaid contributions to miners who acquire the right to pension.
Only one mine operates with profit, and “six of the seven mines have chronic problems in every business aspect”, according to the Elektroprivreda BiH report.
How does the former engineering giant operate?
State companies operating in the gas sector, are also in financial chaos.
Energoinvest, once an engineering giant who was present on all continents, now 95 percent of his business based on the import of Russian gas.
The company announced losses for years that were from 2017. Until 2019. amounted to a total of 14.2m euros, with minor improvements in the past five years leading the business of this company to “positive zero”.
BH-Gas, which manages about 200 kilometers of gas pipelines, ended “in red”, as the Energoinvest lost the arbitration dispute against the Hungarian gas pipeline, after the insistence of “Gazprom” was redirected to Turkish.
BH-Gas also had to write off about a million and a half euros the carrying amount of the Zenica-Travnik gas pipeline in Central Bosnia, which increased its losses.
Meanwhile, the company with fifty employees is entrusted with the task of financing and building a new pipeline towards Croatia to reduce the current full dependence on Russian gas, but also the development of the first gas storage in BiH. The total value of the projected projects exceeds a billion euros.
The energy crisis is not limited to electricity and gas.
The Terminals of the Federation of BiH, responsible for import and storage of petroleum products that are activated in emergencies are also in trouble.
The company has been operating with loss in recent years, and its storage capacities are inadequate and are far smaller than EU recommendations.
Elektroprivreda The Croatian Community of Herceg Bosna (HZHB) is also operating in the Federation of the Croatian Community (HZHB), which is also owned by the Government of the Federation of BiH and operates in the territory controlled by the Croatian Defense Council forces during the war.
It electricity products in hydroelectric power plants and one wind farm. The business depends, mostly, on the water level on the dams.
Elektroprivreda Republika Srpska is also operating in BiH, which is owned by the government of that entity, which is also facing problems in the work due to lost lawsuits for pre-war investments worth more than 897 million euros.
Republika Srpska does not have its own oil terminal. The pipeline of about 60 kilometers is managed by two entity companies whose profit amounted to about half a million euros per year.
