FERK: Electricity prices to increase by 11.4 percent from July 1st

FERK: Electricity prices to increase by 11.4 percent from July 1st

On Thursday, the Regulatory Commission for Electricity in Federation of Bosnia and Herzegovina (FERK) has decided to increase electricity prices for JP Elektroprivreda BH dd Sarajevo consumers by an average of 11.40%. Reports and commentaries of the formal proceedings in the third tariff have been decided on the proceeding of the Public Enterprise Electric Power Industry of

On Thursday, the Regulatory Commission for Electricity in Federation of Bosnia and Herzegovina (FERK) has decided to increase electricity prices for JP Elektroprivreda BH dd Sarajevo consumers by an average of 11.40%.

Reports and commentaries of the formal proceedings in the third tariff have been decided on the proceeding of the Public Enterprise Electric Power Industry of Bosnia and Herzegovina dd Sarajevo and to their request for approval of tariff for the activity of electricity production, for distribution of electricity, the electricity supply business tier, and the proposed tariffs for users of the distribution systems and tariffs for the sale of electricity to non-eligible (tariff) customers of public enterprises.

Accordingly, they made a decision on approving the revenue requirement for the activity: electricity generation, electricity distribution and electricity supply of the first order. 

Based on the Decree on the Use of Renewable Energy and Cogeneration, the reference price for the generation of renewable energy has been set to 8.10872 pfennig/kWh, which represents the production cost of electricity in the Federation, which is obtained as a weighted average value of the production costs of JP EP BiH dd Sarajevo and JP “EP HZ HB” d.d. Mostar, approved by FERK.

Based on the adopted decisions approving the necessary revenue and cost, as well as the cost of transfer, of the ISO and the cost of ancillary services (which is set by DERK) adopted the tariff rates for users of the distribution systems and tariffs for non-eligible (tariff) customers.

Decision on tariffs for the sale of electricity to non-eligible (tariff) customers in the supply of JP BH dd Sarajevo is lifted seasonal differentiation (summer – winter), while retained day differentiation (higher daytime tariff – lower daytime tariff).

By this decision, the electricity prices by JP Elektroprivreda BiH has been increased by an average of 11.40%.

For the category of 110 kV and higher average price is 9.79 pf/kWh, an increase of 12.72%. For the category of spending 35 kV the average price is 12.60 pf/kWh, an increase of 11.45%. For the category of spending 10 kV the average price is 15.05 pf/kWh, an increase of 9.84%. For the category of household consumption is the average price of 14.27 pf/kWh, an increase of 15.77%. For the category of consumer spending remained at 0.4 kV the average price is 20.01 pf/kWh, an increase of 4.98% and the consumption of public lighting category average price is 16.31 pf/kWh, an increase of 2,29%.

The tariffs are applicable from July 1st 2011.

The biggest changes in costs compared to the previous tariff process, from 2007, recognized the cost of procurement of coal, whose price is determined by the Government, Decision adopted on March 4th 2009, where the price of coal increased from 4.5 €/GJ to 4.7 €/GJ for the surface and 5.0 €/GJ for digging holes, increasing the contribution of hydro accumulation by 100% from August 1st 2009, and the rising cost of earning a 28% signing the Collective Agreement between the Government of the Federation and trade unions that applies from January 1st 2008.

The press release further states: In considering the request of JP Bosnia and Herzegovina dd Sarajevo in the tariff proceeding, FERK has to take into account the comprehensive energy sector reform process in Bosnia-Herzegovina, aimed at economically sound and sustainable development of the electricity sector.

FERK took into account the principles of transparency and equal treatment of all market participants, primarily non-discrimination against any consumer of electricity, committing itself to the gradual introduction of internationally accepted regulatory practices and the gradual introduction of generally accepted international standards in the tariff proceeding, to avoid sudden and drastic changes in tariffs during the transitional period, especially taking into account the absence of developed social measures, which is why the FERK decided to avoid sudden and large changes in tariffs during the transitional period, taking into account the gradual elimination of subsidies between electrical activity, category and consumer group, according to a statement of the Commission.

(source: www.sarajevo-x.com)

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