The complexity of political and organizational structures extends to the energy sector where the state-like entities own and oversee three electric power companies, an oil refinery, natural gas transmission and distribution utilities, and coal mines, while district heating facilities fall under the responsibility of municipal (RS) and cantonal governments (Federation). This is a unique arrangement that has emerged as a consequence of the complex political situation.
According to available data, neither production and consumption of energy, nor the condition of energy infrastructure have reached the pre-war level. Energy spending at the current level of energy intensity comprises more than 20 percent of GDP. This is a clear indication that significantly more attention needs to be paid to energy efficiency. According to the estimates from year 2000, households and the commercial sector account for 50 percent of total energy consumption.
The Problem
Some of the major problems facing the energy sector in B&H today include an unclear authority over energy issues, the absence of a long-term energy strategy at the state level, and the absence of energy statistics and laws.
Municipal Energy Management
B&H lacks the legal and political base for efficient decision-making. There is not enough capability to distribute responsibilities of energy and energy efficiency through different levels of government. In addition, knowledge about energy management in municipalities is scarce.
Water Sector
As a result of an aged water system, inadequate maintenance in the last decade, and absence of adequate technology and qualified personnel, water utility companies suffer serious losses in their systems. Losses in the water supply systems in B&H amount to more than 50%. In addition, large amount of water is pumped through the system, leading to enormous electricity bills which have to be paid by someone (consumers, the utility, the city, etc). The low level of payment and the absence of industry are the main causes of the accumulating debt to the electricity distribution company. In certain cases, debt exceeds USD$400,000 per utility.
For More Information, contact:
Angela Morin Allen amorin@ase.org
