Electricity price increase of up to 135% announced in Bosnia and Herzegovina and Serbia


Companies in Bosnia and Herzegovina and Serbia have been told by their suppliers that the price of electricity will increase by 70 to 135%. If new prices become a reality, companies will have to cut production, lay off workers and increase the price of the goods and services they sell in the market.

The steep rise in electricity prices in recent months has flooded all of Europe, and the main reasons are the prices of CO2 emissions and natural gas. Prices on electricity exchanges currently range from 90 to 200 euros per MWh. On the Serbian electricity exchange SEEPEX, the price has increased by nearly 80% since the start of the year, and the day-ahead price is today 174 euros per MWh. Companies in Serbia and BiH do not buy electricity on the exchanges, but the price is not regulated like for households.

Businesses in the region suffered the first blow in June, but the rise in prices on the power exchanges continued, so it was only a matter of time for it to spill over into the market again. bilateral contracts.

In BiH and Serbia, the utilities Elektroprivreda BiH (EPBiH) and Elektroprivreda Srbije (EPS) are the main suppliers.

Some European countries have started to introduce measures to help the business sector

In an interview with Balkan Green Energy News in August, when annual price growth was already around 60%, Dejan Stojčevski, COO of Serbian power exchange SEEPEX, warned that companies that buy electricity on the open market have reason to be concerned.

“Consumers who have long-term agreements for this year and next year will not be affected by the price increase, but those who buy electricity through short-term contracts, and in the second half for the next year, will face problems. Consumers who made deals for next year in March or April of this year are not affected because the price at the time was around 60 euros, ”Stojčevski said.

The question now is how or if governments will react. A tax has already been introduced in Spain to provide funds to help consumers, Bulgaria has proposed measures for businesses, while a similar plan is in the works in Romania.

Employers’ association of the Federation of Bosnia and Herzegovina: prices jumped from 70% to 120%

Representatives of the employers’ association of the Federation of Bosnia and Herzegovina UPFBiH and representatives of the electricity company Elektroprivreda BiH (EPBIH) agreed that the announced increase in electricity prices is not sustainable and that ‘it would have unforeseeable consequences for the economy, as well as for citizens.

The two sides meet to discuss a drastic increase in the price of electricity, ranging from 70 to 120%.

If the price of electricity increases, the price of goods and services will also increase

They agreed that it was necessary to include representatives of the government of the Federation of Bosnia and Herzegovina in the talks and to organize a joint meeting tomorrow between the representatives of the UPBFiH and the EPBiH with the Federal Prime Minister Fadil Novalić and Minister of Energy, Mines and Industry Nermin Džindić.

The association stresses that the announced increase in electricity prices would affect not only the economy, which has just started to recover from the COVID-19 pandemic, but also citizens, as a rise in the price of electricity. electricity would lead to higher prices for goods and services.

The association said it would only support a single-digit increase in electricity prices.

Serbia: prices increased by 135%

The situation is similar in Serbia. According to the N1 news site, representatives of companies in the city of Kragujevac sent an open letter warning that the electricity company Elektroprivreda Srbije (EPS) informed them that from October 1 their prices would be 135 % higher. They said that in this case, they would have to cut production, lay off workers and even shut down.

For example, EPS has informed plastic shutter manufacturer Alfa Plast that it will increase the price of the next 12-month contract from 59 euros per MWh to 123 euros per MWh due to disruptions in the electricity market.

Layoffs, production only at night when electricity is cheaper …

Rajko Sretenović, the owner of the company, says he would only produce at night, when electricity is cheaper.

The Budućnost meat slaughterhouse has announced that it will lay off workers due to the increase in the price of electricity. Budućnost’s Slavoljub Sretenović said he is also expected to cut production.

We set up a working group – the Serbian President

Serbian President Aleksandar Vučić said that one of the owners of a cement plant in Serbia told him that if electricity prices remained so high, they would have to increase the price of cement by 25%, reported Pink television.

Vučić said he spoke about it with Energy Minister Zoran Mihajlović and Prime Minister Ana Brnabić.

“We will form a large state-level working group to resolve this issue,” Vučić added.

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