Bosnia and Herzegovina, The only country in Southeast Europe alongside Bulgaria that has a surplus in the electricity balance08.Aug 2022.
The price of electricity reaches historical values. From thirty euros per megawatt from two years ago, it jumped to as much as 400 euros. Are these golden times for domestic electricity traders?
Bosnia and Herzegovina, along with Bulgaria, is the only country in Southeast Europe that has a surplus in the electricity balance. Last year, the balance surplus amounted to about 4,900 gigawatt hours out of a total of about 17,000 gigawatts of electricity produced.
According to the data of the State Electricity Regulatory Commission, 16 legal entities have a license for international electricity trade in BiH. Three are located in Republika Srpska.
They hide details
None of them reveal the details of the business, but they admit that the overall situation has had a positive impact on their business.
– The global energy crisis has led to a drastic rise in prices of all energy sources on the world market, including electricity, which has had a positive impact on the business of MH “Elektroprivreda Republike Srpske”, given that we are the only ones in the region with balance surpluses and export electricity higher prices compared to the previous period – they say for Srpskainfo in “Elektroprivreda RS”.
This public company, which is a supplier of domestic customers in the Republic of Srpska, also has a license for international trade in electricity.
– However, all business costs are higher because the prices of maintenance of plants and raw materials for thermal power plants, as well as equipment for the distribution network are significantly higher – they say from “Elektroprivreda RS”, noting that the oil used in thermal power plants has risen 100 percent.
We also asked how much their income has increased this year, but the answers will be known later.
– Considering that the first half of the year is not over yet and the calculation will be done by the end of July, then we will be able to give precise data on the financial result. But, it is already clear that he will be positive – the ERS says.
Savo Mirković, director of EFT – Rudnik and Termoelektrana Stanari d.o.o. Stanari told Srpskainfo that the situation should be extremely favorable for electricity traders in BiH.
– However, our company is not in that position because we have long-term contracts, ie we have a loan from the Chinese Development Bank for ten years, until the end of 2026. That is why we have so-called PPA contracts for long-term electricity sales until the loan is repaid. That is why we in Stanari, until the end of 2026, can deliver electricity only under the conditions from those contracts and nothing more – Mirković explains.
This private company exports about 90 percent of the electricity it produces in Stanari.
Mirkovic says that several forums have been held recently on the topic of the energy crisis, but that no one dares to give long-term forecasts.
– Especially since no one knows how long the war in Ukraine will last, because everyone is attached to it – Mirkovic adds.
He points out that one valid house from Europe estimated the stabilization of prices only after 2025.
– Yes, you have to survive until then. In any case, prices will never return to the previous level. For example, two years ago, a megawatt was about thirty euros, now it is from 120 to 160 euros, and for those who buy a day in advance (SPOT market), it is twice as much. Therefore, the price is expected to stabilize at just over 100 euros. But, that is only one assessment and it comes from a valid European house that deals with that – Mirković notes.
He reminds that Republika Srpska and Bosnia and Herzegovina have their own production of electricity, which regulates the price for domestic customers.
– That is extremely good for the citizens and the economy of this country in the situation of the global energy crisis. The advantage is that the state has its own energy, and RS even has a surplus for exports, so it can generate some better income from which it can provide investment, because at the same time it maintains the price for domestic consumers – Mirkovic points out.
In the Register of valid licenses, at the end of 2021, 16 entities were registered for the activity of international trade: EFT – Rudnik and Termoelektrana Stanari d.o.o. Tenants, HSE BH Energetsko preduzeće d.o.o. Sarajevo, JP Elektroprivreda Hrvatske zajednice Herceg Bosne d.d. Mostar, MH Elektroprivreda Republike Srpske – Parent company, a.d. Trebinje, JP Elektroprivreda BiH d.d. Sarajevo, Energy Financing Team d.o.o. Bileća, G-Petrol d.o.o. Sarajevo, Axpo BH d.o.o. Mostar, Petrol BH Oil Company d.o.o. Sarajevo, HEP Energija d.o.o. Mostar, Danske Commodities BH d.o.o. Sarajevo, Interenergo d.o.o. Sarajevo, GEN-I d.o.o. Sarajevo, Alpiq Energija BH d.o.o. Sarajevo, B.S.I. d.o.o. Jajce and Winter Wind d.o.o. Tomislavgrad.
Last year, slightly more than 17,000 gigawatt hours of electricity were produced in Bosnia and Herzegovina, which is 10.8 percent more than the previous year. The total electricity consumption in BiH was 12,170 gigawatts or 7.4 percent more.
The number of electricity customers in BiH was 1,570,415, of which 1,444,520 were in households and 125,895 in all other consumption categories. In the State Regulatory Commission for Electricity energy they remind that at the end of 2014, the regulation of supply tariffs for all customers, except for households and customers from the category “other consumption”, ie small customers, ceased, and the practice of regulating supply tariffs for distribution services was maintained.
We remind you that all five distribution companies from the ERS system asked the regulator to increase the price of the network fee, which is paid by consumers together with the consumed electricity. By the end of the year, it will be known whether the bills will be increased from January 1, Srpskainfo writes.