Bosnia’s state-owned power utility EPBiH is set to close the year with a significant financial deficit, overturning earlier expectations of a turnaround. Data available through the end of November show that losses could reach nearly 40 million euros.
Management had hoped for a positive result by year-end, but interim figures dashed those hopes well before December. By October, projections already indicated a shortfall of more than 33 million euros, with the deficit widening by a further 7 million euros in the following weeks. After accumulating around 23 million euros in losses over six months, the company was unable to stabilize its position.
At the core of the problem are operational constraints, notably insufficient coal supplies and poor hydrological conditions, which have sharply reduced generation. Although the original production plan targeted 6,261 GWh, actual output is now expected to fall to roughly 4,989 GWh.
Recent electricity price adjustments have not been enough to offset these pressures. New tariffs introduced in early September raised household bills slightly, but the additional revenue has proven too modest to counter weaker production and rising costs. This followed a previous price increase in August last year.
Compared with 2023, when EPBiH posted losses of around 170 million euros, the current outlook may appear less dramatic. However, last year’s result was distorted by one-off items, including the cancellation of the long-planned unit 7 project at TPP Tuzla, after which the company recovered about 127 million euros in advance payments from Chinese contractors following the termination of contracts and financing with China’s Exim Bank.
Despite those recoveries, spending pressures remain high. EPBiH continues to rely on coal purchases from external mines, such as Banovići and Gračanica, to keep its thermal plants running. As part of preparations for the 2026 electricity balance, the utility has launched a negotiated procurement for coal from RMU Banovići, with an estimated value exceeding 50 million euros before VAT, to ensure uninterrupted operation of TPPs Tuzla and Kakanj.
All these factors suggest that EPBiH is heading into another difficult year, as structural fuel shortages and volatile generation conditions continue to outweigh limited revenue gains.