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Bosnia and Herzegovina

( Last update: November, 2007 )

Electricity Market
Sector structure
Upstream

Total generation in the year 2006 was 13.62 TWh, out of which 7.57 TWh from coal fired TPPs and 6.05 TWh from hydro power plants.

Generation – license holders:

Elektroprivreda Bosne i Hercegovine JSC (EP BIH) accounting for 46.85% of annual generation, Elektroprivreda Hrvatske Zajednice Herceg Bosne JSC (EP HZHB) accounting for 13.82% of annual generation, and Elektroprivreda Republike Srpske JSC (EP RS) accounting for 39.33% annual generation (data for 2006).

International trade – license holders:

  • Elektroprivreda Bosne i Hercegovine JSC Sarajevo,
  • Elektroprivreda Hrvatske zajednice Herceg Bosne JSC Mostar,
  • Elektroprivreda Republike Srpske JSC Trebinje,<
  • Energy Financing Team (EFT), Ltd. Trebinje
  • EZPADA Ltd. Čapljina,<
  • Aluminij JSC Mostar is licensed for import of electricity for its own needs (HV customer).
Networks

Independent System Operator in BIH (ISO BIH) operates transmission system and balancing market (Established in July 2005).

A single company for transmission of electricity in BIH (Elektroprenos Bosne i Hercegovine, Banja Luka) started its operations in February 2006.

EP BIH and EP HZHB are holders of a single distribution license each, while distribution subsidiaries of ERS are licensed separately (Elektro Doboj, Elektro-Bijeljina, Elektrodistribucija Pale, Elektro-Hercegovina Trebinje and Elektrokrajina Banja Luka).

Distribution in Brčko District of BIH is done by a separate entity, attached to the local government (to become a part of public utility to be created in January 2008).
Downstream

Licensees for supply to tariff customers - first tier suppliers:

  • EP BIH and EP HZHB in the Federation of BIH,
  • 5 subsidiaries of ERS (Elektro Doboj, Elektro-Bijeljina, Elektrodistribucija Pale, Elektro-Hercegovina Trebinje and Elektrokrajina Banja Luka) in the Republika Srpska.

Licensees for supply of eligible (non tariff) customers - second tier suppliers of electricity on the territory of BIH:

  • Elektroprivreda Bosne i Hercegovine JSC Sarajevo,
  • Elektroprivreda Hrvatske zajednice Herceg Bosne JSC Mostar,
  • Elektroprivreda Republike Srpske JSC Trebinje,
  • Energy Financing Team (EFT) Ltd. Trebinje,
  • EZPADA Ltd. Čapljina,
  • Alumina Factory Birač JSC Zvornik
  • Intrade – energija Ltd. Sarajevo.

Supply in Brčko District of BIH is done by the same separate entity dealing with distribution.

End-customers may acquire the eligible customer status in accordance with the following time schedule:

  • customers with annual consumption of electricity higher than 10 GWh as of January 1, 2007, creating the level of market opening of 32.9%,
  • all customers, except households, as of January 1, 2008 (market opening of 58.7%),
  • all customers as of January 1, 2015.

One major customer, Aluminij JSC Mostar accounts for about 20% of total consumption and it obtained eligible status from middle 2007.
Gas Market
Sector structure
Upstream No domestic production.

BH-Gas Sarajevo is the sole wholesale supplier in BIH.
Networks Aside from being the sole wholesale supplier, BH-Gas Sarajevo is the biggest gas carrier within BIH, operating 68% of the transmission pipelines. Other two companies dealing with gas transmission are Gaspromet Pale and Sarajevo-gas Lukavica.

Four gas distributors are responsible for the distribution of gas, namely Sarajevogas Sarajevo, (serving 93.8% of distribution customers), Zvornik Stan (2.2%), Sarajevo-gas Lukavica (1.4%) and Visokogas Visoko (2.6%).
Downstream The same four gas distributors are responsible for the retail sale of gas as well (namely Sarajevogas Sarajevo, Zvornik Stan, Sarajevo-gas Lukavica and Visokogas Visoko). In total, distribution customers consumed 40% of total consumption in 2006.

The largest industrial consumers in BIH are Birač Zvornik (alumina plant) and Mittal Steel Zenica (steel plant) having a market share of 47% and 10.7%, respectively.
Current issues - Preparation of energy sector study and strategy,

- Electricity sector restructuring,

- Creation of competitive energy market and its integration into the regional market and EU internal market,

- Completion of the investment programs, co-financed by international donors, for the reconstruction of damaged generation and network capacity,

- Full SCADA/EMS system allowing supply of information to the ISO is expected by the end of 2008,

- Reduction of system losses,

- Drafting and adoption of the State Law on Gas is one of the priorities of the Government of BIH in the energy sector. This law will introduce restructuring and regulation of the gas sector.
National Legislation Act on Transmission of Electric Power, Regulator and System Operator of Bosnia and Herzegovina (“Act on Transmission”), Official Gazette of BIH, No. 7/02 of 10 April 2002 and amendments published in the Official Gazette of BIH, No. 13/03 of 19 May 2003

Law Establishing the Company for the Transmission of Electric Power in Bosnia and Herzegovina, Official Gazette of BIH, No. 35/04 of 29 July 2004

Law Establishing an Independent System Operator for the Transmission System of Bosnia and Herzegovina, Official Gazette of BIH, No. 35/04 of 29 July 2004

Entity legislation:

Law on Electricity of the Federation of Bosnia and Herzegovina (“Federation Electricity Law”), Official Gazette of the Federation of BIH, No. 41/02 of 23 August 2002; amendments published in the Official Gazette of the Federation of BIH, No. 24/05 of 18 April 2005, and No. 38/05 of 4 July 2005

Law on Electricity of the Republika Srpska (“RS Electricity Law”), Official Gazette of the Republika Srpska No. 66/02 of 23 October 2002; amendments published in the Official Gazette of the Republika Srpska, No 29/03 of 23 April 2003, No. 86/03 of 25 October 2003, No 114/04 of 23 December 2004 and No. 60/07 of 11 July 2007.
Sources State Electricity Regulatory Commission