Electricity sector in Bosnia and Herzegovina

The international obligations of Bosnia and Herzegovina (BiH) regarding the energy sector are mostly contained in the Energy Community Treaty (Decision on Ratification of EC Treaty, BiH Official Gazette – International Contracts, No.9/06). The goal of the Energy Community is the creation of a stable and single regulatory framework and market space able to attract investments in networks and electricity production so all parties have access to stable energy supply, which is important for economic development and social stability.

The Ministry of Foreign Trade and Economic Relations of BiH has the competence to perform duties and responsibilities under BIH jurisdiction that relate to defining policy, coordination of activities and harmonization of entity authorities and institutions’plans on the international level, including the energy and the environment protection sectors,and development and use of natural resources.

The State Electricity Regulatory Commission (SERC), Transmission Company (TRANSCO) and Independent System Operator BIH (ISO BiH) were established by the Law on Transmission, Regulator and Electricity System Operator, Law on Establishment of Transmission Company and the Law on Establishment of the Independent System Operator. The regulatory authority for transmission, transmission system operation and cross-border trade were allocated to SERC. SERC was also allocated, by later changes of law, regulatory authority for District Brcko.

Electricity production, distribution system operation and supply of electricity are governed by legislation of the two entities, the Federation of Bosnia and Herzegovina and Republika Srpska, and theBrcko District. In the Federation of Bosnia and Herzegovina, the Federation Ministry of Energy, Mining and Industry and the Federation Electricity Regulatory Commission (FERC) are the key institutions. The sector is governed by the Law on Electricity adopted in 2013. In Republika Srpska, the Ministry of Industry, Energy and Mining and the Republika Srpska Energy Regulatory Commission (RSERC) are the key institutions. The sector is governed by the Law on Electricity of 2008 and the Energy Law of 2009.

The local Government of Brcko District is responsible for the Electricity Law of the District of 2004. SERC is appointed as the regulatory authority for the District. The Electricity Law of Brcko District was amended in 2013.

In the Federation of Bosnia and Herzegovina, the electricity distribution and themajority of generation and supply, is performed by two vertically integrated enterprises—Elektroprivreda BosneiHercegovine (EPBiH) and Elektroprivreda HrvatskeZajedniceHerceg-Bosne (EPHZHB); each is active on its own territory. In Republika Srpska the holding Elektroprivreda RepublikeSrpske (EPRS) owns five legally unbundled subsidiaries for electricity generation and five companies for distribution and supply. The enterprise KomunalnoBrčko (KB) is a horizontally and vertically integrated communal utility, which operates the distribution network and provides electricity supply to all customers in the District.