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Bosnia and Herzegovina: TPP Ugljevik offline amid coal shortage, RS faces electricity import costs and price hike

TPP Ugljevik has been unable to generate electricity since December 23, forcing its parent company, ERS, to import electricity to meet domestic demand. The plant’s Workers Union President, Boban Benović, stated that adverse weather conditions have hindered coal extraction, despite miners working daily. While he hopes coal production will resume soon, he could not predict when the power plant would restart operations.

Typically, TPP Ugljevik produces about one-third of the electricity required for the domestic market. With the plant offline, ERS has been spending up to 600,000 euros daily on electricity imports. Benović also pointed out that the plant has faced a chronic coal shortage, even before this recent issue.

The Republic of Srpska (RS) operates two thermal power plants, which together account for around 67% of the domestic electricity supply. While TPP Ugljevik is down, TPP Gacko remains operational as it has not faced the severe snowstorms impacting the east. However, the plant has been forced to purchase coal from private suppliers who secured contracts with the Gacko coalmine for export to Serbia.

In the first nine months of this year, TPP Gacko reported a deficit of 9.4 million euros, and TPP Ugljevik faced a loss of 14.3 million euros. These financial difficulties are expected to worsen due to declining production levels at both plants.

Zeljko Tepavčević, President of the Workers Union at TPP Gacko, indicated that a further electricity price hike is planned for spring, which will impact both households and businesses. He noted that the increase would be larger than the one scheduled for early 2025, with the timing likely influenced by the upcoming 2026 elections when such measures are typically unpopular.

RS Minister of Energy and Mining, Petar Đokić, recently stated that approximately 350 million euros would be needed to restore the two thermal power plants, but there are no available funds to cover the cost. Official statistics reveal that in the first 11 months of 2024, the value of imported electricity in RS increased by 76.9%, while exports dropped by 30.6%. The value of imported electricity reached 18.9 million euros, compared to 176.8 million euros in exports.

Starting January 1, 2025, households and businesses in the RS will face higher electricity prices. For households, the increase will depend on consumption, though authorities assure that those with average usage will not be significantly affected. However, businesses will see a 15% increase in their electricity costs.

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