Bosnia and Herzegovina’s state-owned power utility ERS has arranged additional short-term financing of €2 million, bringing new borrowing secured within days to €7 million. The move comes as the utility faces liquidity pressure and production disruption at the Ugljevik coal-fired power plant. The latest facility is intended to cover immediate operating requirements.
The financing is structured as an overdraft facility. Interest and associated costs are estimated at around €120,000. ERS also has a separate €5 million financing arrangement aimed at settling overdue supplier payments.
Since the beginning of 2026, ERS has borrowed more than €50 million, increasing reliance on external funding while domestic generation is under pressure. The immediate operational issue is RiTE Ugljevik, one of Republika Srpska’s largest electricity producers. The plant has suspended production due to insufficient coal supplies, reducing baseload generation available to the system.
RiTE Ugljevik is also dealing with liquidity problems, including blocked bank accounts. The government has granted a 90-day delay for overdue tax payments. Coal security remains the central unresolved issue affecting production continuity.
Authorities previously spent more than €120 million related to the Ugljevik East 2 concession in efforts to secure long-term supply. Mining difficulties have continued, and the plant has struggled to maintain regular output. The resulting financial strain has also revived discussion about electricity tariffs.
Reports have indicated that household prices could rise significantly, although no increase of the scale discussed publicly has been formally confirmed. Short-term loans are intended to support ERS’s immediate obligations. However, coal shortages, weak plant availability and accumulated liabilities leave the utility’s underlying financial position exposed.