The state-owned power utility, EPBiH, is projected to conclude the year with a financial deficit nearing €40 million, a stark reversal from earlier forecasts of profitability. As of late November, data indicates that the company’s financial outlook has deteriorated significantly, with losses escalating beyond initial estimates.
By October, EPBiH had already anticipated a shortfall exceeding €33 million, which has since widened by an additional €7 million. Over the first half of the year, the utility recorded approximately €23 million in losses, reflecting its inability to stabilize operations amidst ongoing challenges.
The primary factors contributing to this financial strain include insufficient coal supplies and adverse hydrological conditions, which have severely impacted electricity generation. The utility’s original production target of 6,261 GWh is now expected to be significantly lower, with actual output projected at around 4,989 GWh.
Recent adjustments to electricity pricing have failed to alleviate these financial pressures. Although new tariffs were introduced in early September, raising household bills slightly, the additional revenue generated has proven insufficient to mitigate the effects of decreased production and escalating operational costs. This follows a prior price increase implemented in August of last year.
The current situation contrasts with 2023, where EPBiH reported losses amounting to approximately €170 million. However, those figures were influenced by one-off events such as the cancellation of the unit 7 project at TPP Tuzla, which allowed the company to recover around €127 million from advance payments made to Chinese contractors following contract terminations.
The utility remains heavily reliant on sourcing coal from external mines like Banovići and Gračanica to sustain operations at its thermal plants. In preparation for the upcoming 2026 electricity balance, EPBiH has initiated a procurement process for coal from RMU Banovići, with an estimated value exceeding €50 million before VAT. This step aims to ensure uninterrupted operation at both TPPs Tuzla and Kakanj.
The combination of structural fuel shortages and unpredictable generation conditions suggests that EPBiH is poised for yet another challenging year ahead. The limited revenue gains are unlikely to offset ongoing operational difficulties as the utility navigates through these turbulent market conditions.
