EPBiH, the state-owned power utility in Bosnia and Herzegovina, may face further pressure to raise electricity prices by late 2026 or early 2027. The risk is linked to weak coal production, lower generation and higher costs for electricity procured on wholesale markets. No formal tariff request has been announced, but the company’s deteriorating operating position is making another adjustment increasingly possible.
EPBiH reported a €26.7 million net loss in 2025 despite generating almost €750 million in revenue. The financial results reflect operational constraints tied to fuel availability and market balancing needs.
Coal supply shortfalls affecting thermal generation
The main structural issue remains coal supply within EPBiH’s group. Mines delivered around 1.01 million tonnes less coal than contracted, leaving thermal plants without enough fuel to produce an estimated 1,000 GWh of electricity. This shortfall constrained generation and increased reliance on external procurement.
Weak hydrological conditions compounded the situation for the utility. EPBiH purchased more electricity on wholesale markets while reducing the volume available for export due to the changed generation balance.
The shift affected a business model in which export earnings historically helped support relatively low regulated domestic tariffs. With reduced export volumes, the utility’s ability to offset costs through market sales weakened. The operating difficulties continued into 2026.
Additional coal requirement for Kakanj and ongoing balancing
In 2026, authorities instructed EPBiH to secure an additional 400,000 tonnes of coal for the Kakanj power plant. Company management also reported production shortfalls at affiliated mines, indicating continued challenges in meeting fuel needs.
To manage its position, EPBiH has increasingly relied on market purchases and trading. The company has participated on Serbia’s SEEPEX exchange since August 2025 and is also developing balancing activities.
Wholesale procurement costs and confidentiality limits
The precise financial cost of electricity procurement remains difficult to assess because individual transactions are subject to confidentiality provisions used in European energy-trading contracts. Without a sustained recovery in mine output and domestic generation, wholesale purchases are likely to remain a significant financial burden.
This would leave limited room for EPBiH to keep retail prices unchanged indefinitely as procurement needs persist under current supply conditions.
