The Energy Regulatory Commission in the Federation of Bosnia and Herzegovina (FERK) refused to give a consent to a ten-year development plan and an annual and three-year investment plan in the distribution system submitted by JP Elektroprivreda BiH dd Sarajevo.
The reason is that plans are not precise enough or mutually harmonized, they said from FERK for the factor.
– At the session held 14. May 2025, Ferk was discussed by the documents, but as stated in the official response, not sufficient in the fulfillment of legal criteria, especially those referred to in Article 54. Law on Electricity of the Federation of BiH – emphasized.
Also, the plans are mutually inconsistent, especially in the period referred to in the period from 2025. until 2027. years, which is an additional reason for rejection of consent.
Legal frame clear
– According to the FBiH Electricity Act, FERK has the authority to give the mentioned planning documents, while the distribution system operator – in this case Elektroprivreda BiH – is obliged to adopt them in the exactly defined deadlines.
The ten-year development plan must be harmonized with the FBiH Energy Strategy, the development of the transmission network development, spatial plans and network users – stands out.
The regulatory agency explained for Factor As the plan must contain concrete information on investment necessary for the connection of new production and consumer capacities, including electricity charges, and must also consider alternative methods of capacity management, energy efficiency measures and energy storage.
– On the other hand, annual and three-year investment plans should be made in accordance with the ten-year plan, but also with transmission plans and applicable spatial documents. In these plans must be clearly presented the current situation of the Network, the needs for additional capacity, as well as the introduction of new technologies, planned construction or reconstruction of the quality and continuity of delivery, environmental protection and information security.
Ferk says: Plans must be supplemented and precisely made
In conclusion, from FERK, they say that BiH Electric Power Plans do not meet the prescribed conditions and that consent may be considered only after being supplemented, more precise and mutually harmonized in accordance with legal obligations.
Minus of 57.5 million KM despite the growth of income
Elektroprivreda BiH and last year ended with negative financial results. According to the company’s annual report, the net loss for 2024. amounted to KM 57.56 million, although total revenues recorded growth.
Company revenues in 2024. year amounted to approximately 1.28 billion KM, which is an increase of 9.9 percent compared to 2023. year. At the same time, total expenditures were reduced by 10.3 percent, and amounted to approximately 1.34 billion KM.
Fewer coales, more problems
The company’s management states that the negative result is the consequences of several factors, including reduced delivery of coal from mines, hydrological adverse conditions, as well as increased electricity consumption by end users. This combination caused a lack of planned balance sheet surpluses and the need for additional procurement of energy in the market, which increased costs.
One of the additional challenges was the time shift in the application of new headquarters for users who use a public service of electricity supply. Instead of the planned beginning 1. June, new tariffs were not allowed into force only 1. Augusta 2024. Years.
Although 2024. ended with loss, the results are still better than the previous year. In 2023. An Elektroprivreda BiH recorded a net loss of as much as 331.79 million KM, which means that the negative balance is in 2024. significantly mitigated.
Missed chance or salvation at the last class
Igor Gavran, an economic analyst, says that what will happen in the future in Elektroprivreda BiH depends on what plans were and why Ferk rejected them.
– If investments are planned in the best way, then the damage is great because the company operates all the above, and the capacities expire. However, if investments were of questionable feasibility or have more important investment priorities (say other forms of energy production or improvement in mines and existing electricity capacities), then the effects may be positive – Isitche Gavran.
He claims that if the plans were rejected justified, because they do not qualify technically or otherwise, then it is a good lesson and incentive to improve the work and preparation of adequate plans.
– Given that the current administration of the Elektroprivreda BiH has not been able to lead this company in the right way and the most creative goverters of electricity) while production is not even close to the potential and the ability to plan and implement investments they need – explains Gavran.
He states that we have a parallel example of BH Telecom and the announcement of the enormous indebtedness to take over Telemach.
– It’s a problematic idea and maybe it’s better for everyone to reject such a plan from the regulator, but to be approved and then ended harmful – concludes raven.
