Bosnia: Competition regulator analysis on electricity market liberalization

, SEE Energy News

The electricity market in Bosnia and Herzegovina is not open to competition, although from January 1, 2015 the buyers may formally choose the supplier, according to the opinion of the Competition Council.

This opinion of the Competition Council was issued at the request of the Ministry of Spatial Planning and Environmental Protection of Sarajevo Canton, on the basis of publicly available information and data collected by regulatory authorities in BiH.

Competition Council found that in the electricity market in BiH there are 24 suppliers with a license for the supply of electricity, but in 2014 only seven performed the delivery of electricity to end customers.

In the Federation of Bosnia and Herzegovina after January 1, 2015, only two qualified buyers used their right to electricity supply from suppliers that are not public including commercial entities Aluminij d.d. Mostar and B.S.I. d.o.o. Jajce.

The right to change supplier, however, was not used by a single qualified buyer in the Republic Srpska.

While collecting data from individual suppliers, Competition Council of BIH received a response from the Energy Financing Team d.o.o. Bileca that in the period from January 1, 2015 until today, the company has not concluded a single agreement with a qualified buyer through the process of changing the supplier.

In the period prior to January 1, 2015, they signed a contract with a qualified buyer from the Federation of Bosnia and Herzegovina.

“Energy Finacing Team” d.o.o. Bileca points out that they had no problems with the delivery of electricity in the current period.

“Proenergy” d.o.o. Mostar said that it has signed contracts with qualified buyers in Bosnia and Herzegovina, but that they have not entered into force due to technical difficulties.

“GEN-I” d.o.o. Sarajevo also states that in the period from January 1, 2015 until today they have not concluded any contract with any qualified buyers.

From this company they state that the formal legal framework is determined which creates the conditions for the opening of the electricity market, but at the level of the system operator, transmission and distribution of electricity not all regulated responsibilities are operational.

Market shares in the retail electricity market in BiH in 2014. (%)

JP Elektroprivreda BiH d.d. Sarajevo 40.74

MH Elektroprivreda RS a.d. Trebinje 29,98

JP Elektroprivreda HZHB d.d. Mostar 20.34

Proenergy Mostar 3.45

GEN-I Sarajevo 3.20

Komunalno Brcko Brcko 1.99

Energy Financing Team Bileća 0.31


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