Bosnia and Herzegovina’s state-owned utility, EPBiH, is facing a challenging financial landscape as it approaches the year’s end, with projected losses nearing €40 million. This situation marks a significant deviation from earlier expectations of a potential turnaround. Data compiled through November indicates that the utility’s financial health has deteriorated, with losses already exceeding €33 million by October and an additional €7 million added in subsequent weeks.
The core issues contributing to EPBiH’s financial struggles are operational constraints, particularly a shortage of coal supplies and unfavorable hydrological conditions that have drastically reduced power generation capabilities. Originally, the utility aimed for an output of 6,261 GWh; however, current estimates suggest actual production will fall to approximately 4,989 GWh.
Recent adjustments to electricity pricing have not provided sufficient relief. While new tariffs implemented in early September marginally increased household bills, the additional revenue generated has been inadequate to counterbalance the decline in production and rising operational costs. This follows a previous price hike in August of the prior year.
When comparing this year’s anticipated losses with those of 2023, which were around €170 million, the current outlook may seem less severe. However, last year’s figures were significantly influenced by extraordinary items, including the cancellation of the unit 7 project at TPP Tuzla. Following this cancellation, EPBiH managed to recover approximately €127 million in advance payments from Chinese contractors due to terminated contracts and financing agreements with China’s Exim Bank.
Despite these recoveries, EPBiH continues to face substantial spending pressures. The utility remains dependent on coal sourced from external mines like Banovići and Gračanica to maintain operations at its thermal plants. In preparation for the 2026 electricity balance, EPBiH has initiated a negotiated procurement process for coal from RMU Banovići, with an estimated contract value exceeding €50 million before VAT. This procurement aims to ensure the uninterrupted operation of TPPs Tuzla and Kakanj.
Overall, these developments indicate that EPBiH is likely entering another challenging year ahead. Structural fuel shortages and unpredictable generation conditions are expected to overshadow any limited revenue gains, placing continued strain on the utility’s financial stability.
