Bosnia's Federation utility proposes linear electricity price hike

Following the review of the rejected price model, Elektroprivreda BiH has proposed a linear increase of 10% for households and 8.1% increase for other types of consumption at 0.4 kV, covering both energy and network fees, Elektroprivreda BiH said in a press release.

"In order to preserve the integrity of the energy system, given the urgency of the situation, Elektroprivreda BiH considers it necessary to act immediately to ensure the operational stability of the system, and thus the continuous supply of electricity to all customers," the company said.

In late April, FERK said it has declined a proposal by Elektroprivreda BiH to introduce a new electricity pricing model which would have linked the price per kilowatt hour (kWh) to monthly consumption levels and increased prices for heavy consumers. FERK stated that the proposed model contradicts the pricing methodology, mandating stable prices, and the utility's lack of disclosed consumption data hinders verification, potentially breaching regulations regarding supply costs.

Elektroprivreda BiH said on Tuesday that FERK failed to submit a counter-proposal as mandated by regulations and miscalculated the average price difference resulting from its proposed increase across the tariffs.

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.