Bosnia's Federation Plans Electricity Price Hike

A strike by miners in the Federation, which was scheduled for Monday, was averted at the last moment after the entity's government agreed at a meeting with the miners' union to increase electricity prices in order to modernise the Federation's mines. 

The agreement was reached at a meeting in Sarajevo on Sunday between Federation Premier Fadil Novalic, the director of the Federation power company, Elektroprivreda BiH, the directors of all the Federation's mines and the miners' union. 

"Electricity [prices] will probably increase. Part of these funds will go to the revitalization of mines, part of the funds is envisaged for assistance to socially endangered categories [of people], while another part will be put aside to strengthen the credit capability of mines," Elvedin Grabovica, the director of Elektroprivreda BiH, told journalists after the meeting.

However price rises could trigger public discontent and opposition from business and MPs in the Federation parliament.   

The government of Bosnia's other entity, the Serb-dominated Republika Srpska, also tried to fix some of its economic and social problems by increasing electricity prices, but had to abandon this plan last week under strong public pressure. 

Meanwhile the Federation also faces problems at its thermo power plants as well as at its coal mines. 

At the end of last week, union representatives at the Federation power company announced protests and warned they would stop production and distribution of electricity to all users after the Federation government announced plans to reduce salaries in by ten per cent. 

"It almost feels like we are trying to put out a wild fire which is spreading across the country with a half-empty glass of water," one government...