The net profit of Bosnia’s Sarajevo-based power company plummeted last year as drought crippled the potential of water bodies used to generate electricity.
Elektroprivreda BiH’s 2017 net profit dropped to KM 620,382 from nearly KM 13 million in 2016, reported Reuters. Drought curbed the hydro-power output and forced Elektroprivreda BiH to turn to costly imports, the company said.
“The drought was the main reason for the drop in the profit (…) Production costs increased as EPBiH was forced to produce more power from costly coal-power generators and also had to turn to imports to make up for the hydro shortfall,” a spokeswoman for EPBiH told Reuters.
Revenues fell 11.8 percent to KM 1.16 billion, while spending rose nearly 15.1 percent to KM 1.14 billion.
Bosnia, normally the region’s only net power exporter, more than doubled power imports to KM 317 million in 2017 to make up for the hydro-power shortfall, according to the national statistics agency.
A long drought and soaring temperatures lowered water levels across the Western Balkans last year, hitting hydro-power output and driving consumption and spot power prices sharply higher.
Bosnia has three government-owned power companies. The other two are Banja Luka-based Elektroprivreda Republike Srpske and Mostar-based Elektroprivreda Hrvatske Zajednice Herceg-Bosna.