Republika Srpska Holds Household Power Prices Until March

Electricity prices for households in Republika Srpska will not change before March, while prices for businesses will be adjusted, Alliance of Independent Social Democrats (SNSD) president Milorad Dodik, Republika Srpska Prime Minister Savo Minic and Minister of Energy and Mining Petar Djokic said today, October 19. At a press conference in Banja Luka they added that Elektroprivreda Srpske will not be sold, and that the Ugljevik mine and thermal power plant (RiTE Ugljevik) must be running again within seven to ten days.

We previously reported on the opposition’s reaction to the announced electricity price increase in Srpska. Today’s appearance is the leadership’s first response to set concrete deadlines.

What did Dodik say about the price of electricity?

Dodik separated households from businesses. The first group stays on current prices, while the second will get an adjustment after talks with business owners, he said.

“The price will not be moved for households, but for businesses it will.”

Dodik tied the freeze to March. “Only in March will we consider a possible leveling of prices, and we remain with the lowest energy price in the region,” he said. By his account, if electricity in Srpska cost the same as in Croatia, the power utility would have 500 million marks more.

He explained why the wait runs to March by pointing to a plan for the energy facilities:

“We want to secure time until March to draw up a comprehensive plan that will provide measures to keep our energy facilities running in the long term.”

The primary goal, Dodik said, is a winter without interruptions: “Our primary goal is to get through the winter with a stable supply of electricity and no restrictions.” He repeated the message to citizens: “The population of Republika Srpska can be at ease, there will be no price increases.”

Dodik said that closing thermal power plants should not be an option for the next ten years, that the energy sector must remain owned by Republika Srpska, and that moving ore extraction to private companies was a big mistake. He announced that talks with partners will take place over the next month or two, and that all the extraction equipment for the Ugljevik mine and power plant would be bought through intergovernmental agreements. Property-law issues, he said, should be resolved by March.

Seven or ten days for Ugljevik?

Minic said the Government is preparing two sets of measures, short-term and long-term, and that the power plant must work again. Sources differ on the deadline. ATV reports him saying Ugljevik must restart within the next seven days, while RTRS says he said seven, and ten days at the latest. Counting from today, that puts the date between October 26 and 29.

On the short-term side, Minic promised a coal supply: “We will prepare two sets of measures, long-term and short-term measures. RiTE Ugljevik must start operating within the next 7 days. We will provide coal.”

The long-term measures concern expropriation, which he said is being slowed by probate hearings and the search for legal heirs, something he called unacceptable for infrastructure projects. The prime minister also announced a special law:

“We will pass a law on strategic infrastructure, which will cover energy and transport and everything that matters. In the whole world, infrastructure that is strategic cannot be held back by sluggish laws.”

Minic added that everyone is responsible for ensuring the smooth operation of the Ugljevik mine and power plant. In his words, “The Government will be informed of the decision-making and the responsibility of the directors, the general director of the parent company, the line minister and mine.” Besides the intergovernmental agreements for buying machinery, the technological equipment needed to run the complex will be secured as well.

What did Djokic say about Elektroprivreda?

Minister Petar Djokic answered the question of ownership: “There will be no sale of Elektroprivreda Srpske, nor its privatization.” He said production at Ugljevik will continue, and that the measures were agreed at today’s meeting on the company.

On demand, he said:

“Demand for electricity is growing every month, global problems exist, and with measures like these we show responsibility and solidarity toward our citizens.”

Dodik added that a fall in the price of oil and oil derivatives is expected globally. Until March, when the leveling of prices is due to be considered, the Srpska leadership has two deadlines to meet: seven to ten days for Ugljevik, and a month or two for the talks with partners on equipment.