BUSINESS

Minister Dzindic: The Energy Transition must be carried out

Nermin Dzindic, Minister of Energy, Mining, and Industry of Federation of Bosnia and Herzegovina (FBiH) was a guest on one show.

To begin with, he said that there are two categories of electricity supply – public supply and market supply.

“There will be no increase in the price of electricity for households. Neither until the New Year nor after the New Year. It is a decision of the FBiH Government, the relevant ministry and it will remain valid. As for the market supply, we need to clarify and explain several things. Elektroprivreda (EP) BiH is a public company that has a turnover of about one billion and one hundred million BAM, of which almost half is on public supply, ie households plus public lighting. Approximately 200 million BAM is on the market supply, which is 10, 20, 35, and 110 kilowatt network and that is why we had all these meetings related to the discussion of whether or not there will be an increase in prices. We have somewhere around 250 million BAM of electricity exports from EP BiH and to that is added about a hundred million for trade. Now we focus on these 187million revenues that EP BiH has for electric power market supply. Since January 1st, 2016, BiH has been on the open market in terms of electricity and the rules are completely identical in BiH, Serbia, and Croatia, as well as all European Union (EU) member states. So, the reference stock exchange for BiH is HUPX in Hungary. That price minus some market coefficient is the rule by which the price is determined formarket customers in the market supply. The market coefficient is determined by EP BiH and it ranges from 1 to 8 euros and cannot exceed that. All customers who buy from EP BiH today can buy from any other supplier, and there are about 20 of them in the Federation, without any problems and without looking back at the work of EP BiH. “

“Tomorrow we will continue a marathon meeting with both administrations of the EP BiH. We are trying to find the best model of how to respond to help the economy that is supplied on the model of market supply.”

Dzindic explained that they are aware that the fragile economy of the Federation cannot accept a large increase and that this would lead to problems in the business of many companies, to difficulties in the work, especially of companies that have a great influence on their electricity production. These are foundries, ironworks, smithies. We have another phenomenon that, for example, 10.000 companies have signed contracts with the EP BiH, related to market supply. Of those 10.000, about a dozen companies consume 80% of electricity. We must include this phenomenon in the elaboration of the model for the thematic session of the FBiH Government. “

The energy transition must be carried out

He stated that we are part of the energy transition and that we must implement it or the system will collapse, Federalna writes.

E.Dz.

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