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Elektroprivreda Republike Srpske expects a loss of BAM 29 million (EUR 14.8 million) this year, according to the power utility’s CEO Luka Petrović.

The reasons for the poor business results of Elektroprivreda Republike Srpske (ERS) are bad hydrological conditions and an increase in electricity imports, Luka Petrović said, as quoted by news agency Srna.

ERS is one of the three state-owned power utilities in Bosnia and Herzegovina. It is in charge of the electricity production and supply in the Republic of Srpska, one of the country’s two political entities.

Of note, a week ago, the new Prime Minister of the Republic of Srpska Savo Minić called the situation in the electricity sector extremely complex. He has also set a 15-day deadline for setting up plans to overcome the issues.

Petrović: Electricity is imported for EUR 72 per MWh and sold to citizens for EUR 34 per MWh

Following the meeting of ERS’s management in Trebinje, Luka Petrović emphasized that the company’s electricity production would be significantly reduced, to 4,500 GWh. He previously said hydropower output decreased by 50% this year on an annual basis.

He recalled that ERS already purchased about 13% of electricity for domestic supply at high prices. The difference between purchase and sales prices will produce a loss of about BAM 29 million (EUR 14.8 million), Petrović added.

He noted that in 2023, when the hydrological situation was good, ERS achieved a record profit of BAM 146 million (EUR 74.6 million).

Of note, the company recorded a BAM 3.2 million (EUR 1.6 million) profit in 2024.

Petrović stressed that the electricity deficit would have to be purchased on the power exchange, at EUR 72 per MWh, while it is sold to citizens for EUR 34 per MWh, compared to the price for businesses of EUR 75 per MWh.

Imports this year reached BAM 60 million to BAM 70 million (EUR 30.7 million to EUR 35.8 million)

Two consecutive years with drought can disrupt the cash flow because there is no export capacity, Petrović explained.

He asserted that ERS’s electricity exports over the past few years were worth BAM 100 million to BAM 200 million (EUR 51.1 million to EUR 102.2 million) per annum, while imports were between BAM 30 million and BAM 60 million. This year, electricity bought abroad amounted to between BAM 60 million and BAM 70 million (EUR 30.7 million to EUR 35.8 million).

Of note, in previous years, BiH was the largest net exporter of electricity in the region. However, imports were nearly 4.5 times higher in the first half of the year than in the same period of 2024. Another power utility, Elektroprivreda BiH (EPBiH), is increasing losses.

Government to hold a session about ERS

Petrović noted that the company has repaid a loan of BAM 78 million (EUR 39.9 million) and another of BAM 60 million (EUR 30.7 million).

A government session about ERS is planned. He will propose that it be held at the Ugljevik thermal power plant, from which a third of the electricity is delivered to Slovenia.

In addition, the management of ERS has requested further rationalization of all operating costs.