ENERGY 2021
BUSINESS
LUKA PETROVIĆ, DIRECTOR, ELEKTROPRIVREDA REPUBLIKE SRPSKE
A RELIABLE SUPPLIER ERS, Elektroprivreda Republike Srpske, is the backbone of the country’s economic and social development and, as such, has a serious approach to the community, its owner, the government and consumers
Elektroprivreda Republike Srpske has the lowest electricity price in the region, and this unrealistically low price has to be compensated by exports. However, the social sensitivity of this arrangement impacts the investment cycle because the company’s revenues are so low due to the massive subsidy to households that the amount that remains for investment in new projects is insufficient. Our challenge is to finally start treating electricity as a commodity, and to invest the revenue from sales in the construction of new facilities using renewable energy sources. While our concern for consumers remains, and the price of electricity in Republika Srpska will continue to be much lower than the market price, we must move towards European principles and adopt regular standards.
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esides increasing production from renewable sources and improving energy efficiency, our business priorities include regular supplies to consumers, development of the energy sector, environmental protection, and reform and reorganisation of production. For a quarter of a century, ERS has been playing an exceptionally important role in the development of Republika Srpska. Elektroprivreda carries great responsibility and an obligation to provide all customers with a reliable, continuous and high quality electricity supply, respecting the principles of business competitiveness and meeting the prescribed standards. Our social responsibility is enormous and some-
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Elektroprivreda Republike Srpske has the lowest electricity price in the region and we compensate for this unrealistically low price through export times a special ballast, because it requires long-term success, serious strategy and planning. We must balance two extremes to enable the successful operation of the company: on the one hand a free market and competitive principles, and on the other hand the customer, who is the centre of our attention with his budget, which at present assumes a standard adjusted price of electricity that is far below its market value.
All companies in the region have problems with losses in distribution. Are there any solutions for this? Distribution losses are an important issue to which distribution companies and the system as a whole have paid close attention. We have managed to reduce network losses by about six percent in a few years by implementing measures under the Unified Operational Plan for Reducing Distribution Losses, which is an important result overall. This reduction was realised primarily in commercial losses, which are usually due to unauthorised consumption of electricity. All electricity distribution companies, have reduced their losses to a level approved by the national energy regulator, except for Elektro Krajina, where the average annual losses are still above the approved level.
