Bosnia and Herzegovina: Due to a lack of DSO unbundling, EnC Secretariat submitted Reasoned Request

, SEE Energy News

Because of the failure of Bosnia and Herzegovina (BiH) to rectify the breaches identified by the Secretariat related to unbundling of the distribution system operators (DSOs) in accordance with the requirements of the Directive 2009/72/EC, The Energy Community (EnC) Secretariat submitted a Reasoned Request to the Ministerial Council.

The case was submitted after carrying out a preliminary procedure. The Ministerial Council will take a decision on the alleged breaches of the Energy Community acquis at its next meeting.

Bosnia and Herzegovina has not remedied the concerns raised in the Secretariat’s Opening Letter regarding the failure to correctly transpose the requirements for unbundling of electricity DSOs into national legislation, and to take measures to effectively implement their legal and functional unbundling. In its Opening Letter from January 2018, the Secretariat took the view that BiH failed to comply with its obligations under the Energy Community Treaty by not having transposed the unbundling requirements of the Third Energy Package into national legislation and not having taken measures to implement legal and functional unbundling of its national electricity distribution system operators in practice. Unbundling of distribution system operators is one of the central elements of electricity market liberalization and has been obligatory in the Energy Community since 2015. Only when separated from other segments of the energy supply chain can distribution system operators act independently and consumers benefit from greater choice of electricity supply companies, which in turn offer improved services at a fair price.