Electricity bills have increased by 10.4 percent in most parts of the Federation, following a request from Elektroprivreda Bosnia and Herzegovina that was approved by FERK. While the government promises subsidies for certain categories, citizens are upset about the price hike, with experts warning of chain price increases and questioning the effectiveness of raising electricity prices to solve the company’s problems.
Citizens anticipate more financial difficulties ahead, seeing the electricity price increase as a precursor to additional rises in other essential services. To alleviate some of the burden, the Federation government has extended the deadline for subsidizing electricity for vulnerable groups until 2025.
Economist Željko Šain criticizes the temporary measure as merely a band-aid solution, emphasizing the lack of long-term planning in Bosnia and Herzegovina’s energy sector. He warns that unresolved issues could lead to further price increases across various sectors.
The price hikes were approved after Elektroprivreda BiH reported a record loss of 331 million marks for 2023, highlighting the financial challenges facing the energy company and the broader economic policy issues in the region.