Elektroprivreda Republike Srpske faces potential 50% electricity price hike

Elektroprivreda Republike Srpske (ERS) is facing a severe financial crisis, with reports indicating the company has shifted from a 145 million KM profit to a 30 million KM loss. To address this, General Director Luka Petrović is considering a request to increase electricity and network fees by as much as 50 percent, a move that would require approval from both the RS Government and the Regulatory Agency for Electricity.

Industry experts suggest the price hike is driven by the high cost of imported electricity, which is significantly more expensive than the rates charged to consumers. The company’s financial instability is compounded by production failures, specifically at the RiTE Ugljevik thermal power plant, which has repeatedly suspended operations due to coal shortages and unresolved legal issues regarding coal deposits.

While Petrović maintains that ERS provides the lowest electricity prices in the region and is working on new production capacities—including hydroelectric plants Bistrica and Dabar, as well as solar and wind projects—critics argue that the company must address mismanagement and the reliance on expensive imports to ensure long-term stability.