Electricity in Bosnia and Herzegovina (BiH) is set to become more expensive starting in 2026, with the only uncertainty being the percentage increase. This change is primarily driven by the country’s commitment to align with European regulations on green energy, particularly the introduction of a carbon dioxide emission tax.
Goran Racic, President of the Banja Luka Chamber of Commerce, explained that by joining the European Energy Community, BiH is obligated to conform its energy production to European laws by January 1, 2026. If electricity producers do not account for the CO2 emission tax—which ranges from 60 to 100 euros per ton—they will face additional charges when exporting electricity.
Racic noted that authorities are working to find resources to ease this transition, aiming to prevent a sudden financial burden on enterprises that could undermine their competitiveness due to the CO2 tax. BiH will need support from the international community to navigate the EU’s energy transition processes.
When asked if electricity producers would pass on these costs to consumers, Racic highlighted that electricity prices are regulated, yet power utilities often attempt to transfer new costs to end users to avoid losses. To mitigate this impact, authorities are seeking EU project funding to help alleviate the financial burden on both the population and the economy. Nevertheless, it is expected that consumers will bear part of the new expenses come January 1, 2026.
Bojan Vipotnik, the Minister of Construction, Ecology and Urbanism of the Republic of Srpska, acknowledged that a challenging period lies ahead, particularly as the EU begins implementing cross-border carbon adjustments on the same date. He expressed hope for agreements with businesses in the energy and industrial sectors to ensure they remain competitive in the market despite these adjustments.
