Private suppliers offer companies up to 20 percent lower power prices

Private suppliers offer companies up to 20 percent lower power prices

Although the electricity market in Bosnia and Herzegovina since 1 January / January 2015 open to all customers, it seemed that still there is not so much interest among companies and citizens to change the traditional suppliers such as power utilities. However, current trends show that more and more companies are beginning to think about changing suppliers especially as, as we found out, many of them now offer companies lower electricity prices by up to 20 percent.

When asked why there was this change and what is the interest of companies, Ognjen Markovic, the director of USAID Energy Investment Activity- EIA of the project, says that from 01.01.2016. conditions have been acquired that encourage and independent suppliers and customers connected to the distribution network (industrial and services) to appear on the market, the first to offer electricity, and the other to buy.

“The circumstances referred to the practical implementation of the adopted rules for the operation of the market and lowering the wholesale price of electricity in the region, which allowed independent suppliers to offer better terms on one category of customers from traditional suppliers ” he said.

He points out that private businesses should have interest in these new circumstances, especially those in which electricity accounts for a significant part in the structure of labor costs and production.

“Offer prices and services that give independent suppliers are such that customers see their economic interest in it. Of course, when selecting suppliers should be careful, do not rush, because the reliability / quality of it an important element of the decision of the buyer” says our source.

He added that so far, already several customers changed supplier, and with many more planning to do so soon. He says that there is no accurate data, but estimated the number to be able to move about 10 customers. Speaking about the trends that we can expect states that electricity becomes a market commodity whose price is affected by a number of factors, among other climatic factors, consumption of electricity in the region, development / construction of production facilities from renewable sources, energy efficiency measures and the construction of conventional power plants, but it is difficult to speak with certainty about the long-term trends.

‘But as things stand now, the electricity market will be further developed and will increase the number of customers who change their supplier” he said.

This is supported by analysis of the Center for Education and Raising Awareness of Energy Efficiency Energis which was doing before the market opening, which revealed that due to the reduction in energy costs 68,75% of citizens would change supplier if they get more favorable prices for electricity from someone else.

Of the total respondents, only 7% of them were satisfied with the current supplier and would not have changed it, while 22.50% of the respondents would not change supplier because they do not want to risk the supply of electricity, according to their research. Recall that the electricity market in Bosnia and Herzegovina is open to all customers from 1.1.2015. year, but then only large consumers, Aluminium and BSI Jajce, went to the market to buy electricity. Customers connected to the distribution network remained true to electric utilities.

Renewable Energy Projects in Bosnia and Herzegovina

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