PRESS RELEASE – THE SERC ISSUED DECISIONS ON THE DISTRIBUTION AND SUPPLY TARIFFS IN BRČKO DISCTRICT BiH Print

At the session of the State Electricity Regulatory Commission , held on December 29, 2014 in Tuzla, after a public hearing, decisions were made on tariffs for distribution services and decision on tariffs for electricity supply within universal service in Brčko District of BIH.

In determination of tariffs for distribution, the actual costs for each category of customers were taken into account which is in function of the full opening of the electricity market.

The decision on tariffs for supply defines the total price of electricity that includes distribution service. These tariffs will be applied only for households and commercial customers (consumption at 0.4 kV) that do not exercise their right to choose supplier in the market.

The average price for the supply of commercial customers decreased by 1.5%, while prices for households increased by 10%. Such correction was made due to the obligation of the Regulator to gradually allocate associated costs in supply activity to the each category of customers. In this step, the legacy of cross-subsidies between commercial customers and households from the existing 37% decreased to 22.7%. The price correction was also made due to the increased costs for procurement of energy from the Elektroprivreda RS by 12.9% compared to the procurement costs from 2011 when the SERC set the tariffs being applied by the end of 2014.

Households in the Brčko District of BIH in the first half of 2014 had the lowest average price of electricity in Bosnia and Herzegovina (11.94 pfennig/kWh). The new prices for households are 11.6% lower than those that will be paid by Elektroprivreda BIH customers, 14.6% lower than those paid to Elektroprivreda HZHB, and 5.2% higher than those paid by households supplied by Elektroprivreda RS.

In the process of making decisions, the SERC took into account the Brčko District of BIH Government's Program that provides for vulnerable customers subsidies in the amount of 700.000 BAM for part of costs for electricity. This Program includes over 30% of households.

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The State Electricity Regulatory Commission is an independent and non-profitable institution of Bosnia and Herzegovina, which acts in accordance with the principles of objectivity, transparency and equality, and has jurisdiction over and responsibility for transmission of electricity, transmission system operation and international trade in electricity as well as generation, distribution and supply of electricity for customers in Brčko District of BIH.

 
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