The Federation of Bosnia and Herzegovina will implement a tiered electricity price reform for households starting September 1st, with three tiers based on consumption: green (0-350 kWh), blue (351-1000 kWh), and red (over 1000 kWh).
Federal MP and economist Čavalic criticized the policy as lacking economic justification and effectively exacerbating energy poverty. He believes the new policy ignores key factors such as household size, regional climate (for example, cold regions require electric heating), and the availability of central heating, and argues that simply dividing the rich and the poor based on electricity consumption is unacceptable.
Households with electricity consumption exceeding 1000 kWh are often those with many children or those using electricity for heating. Previously, they received subsidies, but are now facing disguised fines. Tiered electricity prices are only applicable to short-term power shortages and require a robust social security system (such as social security cards). He emphasized that this measure neither effectively stimulates consumption nor violates social equity. He has recommended that the Constitutional Court review the legality of the policy and demand that the power company provide an alternative.
