State-owned power utility ERS is seeking approval from the regulator for a significant electricity price increase of up to 20% for both businesses and households. Additionally, ERS is requesting a reduction in the consumption thresholds, which would work in its favor but to the detriment of consumers.
Currently, households consuming up to 500 kWh per month pay the lowest rate for electricity. However, ERS now wants to lower this threshold to 300 kWh. ERS is also proposing that the second threshold, where electricity is slightly more expensive than the first tier and currently set at 1,000 kWh, be reduced to 500 kWh per month.
In addition to households, ERS has also requested a price increase for businesses. A recent meeting between ERS representatives and the business community was held at the Chamber of Commerce of the Republic of Srpska (RS), where companies were advised to start factoring in the new expense due to the anticipated price increase. Companies were told to expect a 15% rise in electricity prices.
The electricity price increase must be approved by the RS Energy Regulatory Commission (RERS), to which ERS will need to clearly demonstrate a justified reason for the hike.
Financial results for the first nine months of the year reveal a sharp decline in profits for electricity production companies within ERS. RiTE Ugljevik is operating at a loss of 15 million euros, HET’s profit has dropped significantly, and last week RiTE Gacko halted production due to poor coal quality.
