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Bosnia and Herzegovina: EPBiH defends market-based electricity pricing amid consumer complaints

Bosnian state-owned power utility EPBiH has responded to recent complaints from commercial consumers, clarifying that under the new Electricity Law of the Federation of Bosnia and Herzegovina (FBiH), which came into effect in August 2023, certain businesses lost their right to be supplied under the public service framework as of 1 September 2024.

The new regulations apply to businesses that meet at least one of the following criteria: having more than 50 employees, generating annual revenues exceeding 4 million euros, consuming over 50,000 kWh of electricity in the previous year, or operating facilities connected to a voltage higher than 1 kV. These consumers are no longer eligible for electricity at regulated prices set by the energy regulator FERK for households, general consumption, and public lighting at 0.4 kV.

As a result, affected consumers must transition from public service supply to market-based supply, where electricity prices are determined by market mechanisms. This shift has led to a significant price increase for some businesses. EPBiH emphasized that all customers signing supply contracts for 2025 were fully informed about the terms, including pricing and other contractual conditions.

The most impacted consumers belong to the general consumption category at 0.4 kV, particularly those with continuous electricity usage, such as for heating, cooling, or industrial operations running multiple shifts. During the contracting period for market-based supply, wholesale electricity prices were approximately 10% higher than the limits set by the FBiH Government’s special price control measures for 2024. However, EPBiH chose to offer contracts for 2025 under the conditions established by the government, ensuring that prices remained below prevailing market rates at the time.

Due to this approach, consumers who had already transitioned to market-based electricity before the law was enacted in August 2023 have not experienced significant price increases for 2025.

EPBiH stated that market-based electricity prices are standardized for all consumers. The utility cautioned against comparing individual tariff elements—such as active energy, billing capacity, or metering points—since the total cost is distributed across multiple tariff components. Instead, the most accurate way to assess the impact of the new pricing structure is by comparing total calculated electricity expenses before and after the transition.

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