Bosnia's Federation regulator rejects utility's electricity pricing model proposal

The proposed model conflicts with the pricing methodology for supplying electricity to end customers at public and reserve suppliers, which mandates avoiding sudden price changes for customers supplied by the public supplier, the Federation's Regulatory Commission for Energy (FERK) said in a statement on Monday.

Additionally, the supply cost surpassing 15% of the total energy procurement for end customers in the second half of 2024 would breach regulations, and the proposed price hikes cannot be verified due to the utility's lack of disclosed consumption data.

Earlier in April, Elektroprivreda BiH said it has submitted a proposal to FERK for a new electricity pricing model which would introduce three tariffs - green, blue, and red - with differing prices based on consumption levels, with the green tariff remaining constant for households consuming up to 268 kWh per month.

Elektroprivreda BiH stated back then that the proposal aims to save electricity, enhance energy efficiency, and stabilise the energy sector to prevent higher prices for consumers, noting that approximately 60% of households will see no change in electricity prices.

Elektroprivreda BiH, Bosnia's largest power utility, is based in the Federation entity. Elektroprivreda RS is the power utility of the Serb Republic.

The Federation and the Serb Republic are two autonomous entities that form Bosnia and Herzegovina.