Bosnia and Herzegovina Submits Reform Agenda to EU, Aiming to Harmonize Electricity Prices by 2027
Bosnia and Herzegovina has submitted its long-awaited Reform Agenda to the European Commission, aiming to align household electricity prices with regional and EU levels by 2027. The move comes after a year's delay and could secure significant funding for the country.
Currently, Bosnian households enjoy some of the lowest electricity prices in Europe, with rates below ten eurocents in the second half of 2021, according to Eurostat. However, the country aims to gradually increase these prices to market levels, a process that will be overseen and supported by the European Commission.
The Reform Agenda, adopted by the Council of Ministers, outlines the steps Bosnia and Herzegovina will take to achieve this goal. The Ministry of Foreign Trade and Economic Relations is conducting a study on price deregulation for households, expected to be completed by the end of the year. This study will explore different scenarios for harmonizing prices, with the first step being a thorough analysis of the current situation.
Failure to adopt and implement the Reform Agenda would have resulted in Bosnia and Herzegovina losing EUR 108 million from the Growth Plan for the Western Balkans. Unfortunately, due to the delay, the country has already missed out on this funding. Despite this setback, the European Commission has proposed initial support, worth EUR 87.7 million in total, for projects in Albania, Montenegro, and Serbia.
Bosnia and Herzegovina's commitment to liberalizing its electricity market and aligning prices with market levels is a significant step towards EU integration. The country now awaits the European Commission's assessment and approval of its Reform Agenda, with the successful implementation of promised measures potentially unlocking further funding and support.
