Market updates on Energy & Natural Resources by SEE Legal

Bosnia & Herzovina, Market Intelligence – Energy Tariffs

The State Electricity Regulatory Commission – SERC is competent for regulation of tariffs in relation to electricity in B&H, the Federation Electricity Regul atory Commission – FERC is competent for regulation of tariffs in relation to electricity in the Fe deration of Bosnia-Herzegovina, and the Regulatory Commission for Energy of Republika Srpska (hereinaft er: the Regulator) is competent for regulation of tariffs in Republika Srpska.

Tariffs in B&H

Tariff procedure in B&H is regulated by the Rulebook on Tariff Procedure (Official Gazette of B&H, number 44/05) and shall be initiated by filing an appli cation for the determination of tariff by a regulated company or on the initiative of SERC. Therefore, the regulated company that is filing the tariff application is obliged to deliver individual announcem ents on the filed tariff application to all of its buyers. SERC shall approve a tariff application in accordance with the proced ure regulated by SERC’s Work Rulebook (Official Gazette of B&H, number 45/04), and SERC’s procedur e related to the public debate provided by the Rulebook on Hearing Procedure (Official Gazette of B&H, number 38/05). The Pricing Methodology for Services of Electricity Transm ission, Operation of Independent System Operator and Ancillary Services (Official Gazette of B&H, number 46/05) provides the tariff pricing methodology for services of electricity transmission and tariff pricing methodology system for services of the Independent System Operator and tariffs for ancillary services. Tariffs issued by SERC are the transmission fee, tariffs for the system services of the Independent System Operator and tariffs for ancillary services.

Tariffs in the Federation of B&H

The Electricity Law of the Federation of B&H (Official Gazette of the Federation of B&H, number 41/02) provides that FERC prescribes the methodology for tariff determination with respect to activities of generation, distribution and supply of electricity, de termination of tariffs for distribution system users and non-eligible customers, as well as standards for approval of tariffs. Therefore, FERC adopted the Rulebook on Tariff Methodology and Tariff Procedure (Official Gazette of the Federation of B&H, number 45/05) in order to establish the framework for conducting FERC’s authorities in relation to the tariffs. The Rulebook on Tariff Methodology and Tariff Procedure provides methodology and standards for tariffs determination, as well as procedures for consideration of a tariff application and all other statements in relation to tariffs beginning with initiati on of tariff procedure by filing a tariff application by a regulated company or on the initiative of FERC, application validity, contents of tariff applications, and the method of public notification on filed applications by a regulated company or FERC. The establishment of FERC, and its activities, is part of a reform process of the energy sector in B&H, which is in accordance with the identical processes in all EU countries and tran sition countries that intend to join the EU.

Tariffs in Republika Srpska

The procedures related to the tariff determination in the energy sector are initiated by filing an application by the regulated company to the Regulator or on the initiative of the Regulator. After that, the Regulator issues the public notice on initiating the tariff procedure and an explanation on how the stakeholders may SEE Legal get necessary information and take part in the procedure. After the procedure prescribed by the Regulator in its Rulebook on Tariff Methodology and Tariff Procedure (Official Gazette of Republika Srpska, number 61/05), Rulebook on Methodology for Determination of the Fee for Connection to the Distribution Network (Official Gazette of Republika Srpska, number 123/08), Procedural Rules of the Regulator (Official Gazette of Republika Srpska, number 96/04) and Rulebook on Public Hearing and Settlement of Disputes and Complaints (Official Gazette of Republika Srpska, number 71/05), the Regulator is able to make a decision. Each decision should contain enough evidence and facts that should enable the public to understand the reasons for such a decision.

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