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What Happened After Electricity Market Liberalisation - State Owned Electric Utilities in Bosnia and Herzegovina

Author

Listed:
  • Igor, TODOROVIĆ

    (Faculty of Economics, University of Banja Luka (BOSNIA AND HERZEGOVINA))

  • Stevo, PUCAR

    (Faculty of Economics, University of Banja Luka (BOSNIA AND HERZEGOVINA))

Abstract

One of the biggest questions battling government of Bosnia and Herzegovina is performance of Electric Utilities, as they are one of the biggest resources and largest State Owned Enterprises. This issue became more important as of January 1st 2015 electricity market has been liberalized and fully opened and all customers have the ability to freely choose their supplier of electricity. Before January 1st 2015 state owned Electric Utilities operated in monopoly market where competition was not possible. Therefore, due to market liberalisation existing companies will need to be more competitive than before in order to grow and survive new competition from neighboring countries and EU. Paper analyses performance of State Owned Electric Utilities listed on the Banja Luka and Sarajevo Stock Exchange in period after opening of electricity market. Measuring the success of the State Owned Electric Utilities is based on the analysis of financial statements for period from 2015 to 2019, using indicators of profitability and market indicators. The results reveal that State Owned Electric Utilities from Bosnia and Herzegovina have poor performance indicators. The broad conclusion that emerges from the results is that electricity market in Bosnia is still not liberalised and open and that state owned Electric Utilities still operated in monopoly market as they continue to survive with very poor performance indicators. In order to improve government has to conduct extensive reforms and reorganization of its Electric Utilities in order to survive when new competition enters market.

Suggested Citation

  • Igor, TODOROVIĆ & Stevo, PUCAR, 2020. "What Happened After Electricity Market Liberalisation - State Owned Electric Utilities in Bosnia and Herzegovina," Journal of Economic and Social Development, Clinical Journals Press, vol. 7(02), pages 01-11, September.
    • Handle: RePEc:ris:joeasd:0068
    as

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    References listed on IDEAS

    as
    1. K. Bayliss, 2002. "Privatization And Poverty: The Distributional Impact of Utility Privatization," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 73(4), pages 603-625, December.
    2. Bayliss, Kate, 2002. "Privatisation and Poverty: The Distributional Impact of Utility Privatisation," Centre on Regulation and Competition (CRC) Working papers 30663, University of Manchester, Institute for Development Policy and Management (IDPM).
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    More about this item

    Keywords

    competition; market liberalisation; performance; state-owned electric utilities;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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