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Bosnia and Herzegovina: Coal shortages and rising debt threaten operations at ERS thermal power plants

The financial situation is currently dire for the two coal-fired thermal power plants operated by ERS, particularly at the Ugljevik plant, where a coal shortage has halted electricity production. Boban Benovic, president of the RiTE Ugljevik Union, confirmed that the plant is expected to resume operations today, but warned that this does not guarantee stable or continuous production. Currently, there is enough coal to keep the plant running for only three to four more days.

The situation at the Gacko plant is similarly concerning, with workers expressing growing fears as coal supplies continue to dwindle and debts rise. Zeljko Tepavcevic, president of the RiTE Gacko Union, reported that overburden removal had ceased the previous day, and coal production has since stopped. With less than 10,000 tons of coal in storage, Tepavcevic warned that the plant can operate for no more than 36 additional hours.

Luka Petrovic, director of ERS, remains optimistic that a solution will be found for both thermal plants. A meeting in Ugljevik is scheduled for December 11th to define steps for stabilizing operations. Petrovic also stated that, given the current unfavorable electricity prices paid to thermal power plants, a price increase is warranted. He emphasized that a thorough review will be conducted to understand how the situation reached this point.

The nine days of halted production at the Ugljevik plant have had significant financial consequences, costing the system dearly. According to Zoran Vukovic, Executive Director for Electricity Supply at ERS, the company has already had to purchase approximately 35 GWh of electricity on the exchange at a cost of around 5.3 million euros.

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