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Bosnia and Herzegovina: ERS to finally implement net metering contracts for prosumers starting August 6

After three years of effectively shortchanging prosumers, the state-owned power utility Elektroprivreda Republike Srpske (ERS) has announced that, starting August 6, prosumers will be able to sign electricity supply contracts under the net metering scheme.

Since the Renewable Energy Law was adopted, ERS had largely avoided implementing net metering. During this period, electricity generated by prosumers from their solar installations was fed into the grid and sold by ERS, but the producers received no payment for this energy. Meanwhile, ERS properly billed and charged prosumers for the electricity they consumed from the network.

The Regulatory Energy Commission of the Republic of Srpska (RERS) challenged and annulled these bills, ordering ERS to reissue them based on net metering principles — which require compensating prosumers for the electricity they supply to the grid. Despite this, ERS largely ignored the ruling.

In a recent announcement, ERS explained the delay by citing the adoption of a new regulation amending the VAT law, which clarified VAT calculation for these cases. According to ERS, this regulation now allows non-taxpayer electricity customers with personal electricity generation installations to enter into net metering supply contracts, as prescribed by the Renewable Energy Law.

ERS also warned that producers who fail to sign these new contracts will lose the right to have their electricity consumption and production accounted for under net metering. Instead, they will continue to receive bills only for the electricity drawn from the grid, as had been the case until now.

In light of the prolonged underpayment and unfair treatment of prosumers, ERS General Director Luka Petrovic has recently faced charges of abuse of office and negligent performance of duties.

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