Market Reforms

BiH, as member of the Energy Community Treaty, is bound by the decisions and agreements of the Ministerial Council of the Energy Community.

BiH has committed to fully align its legislation with the EU Third Energy Package for gas and the Electricity Integration Package which creates the foundation of the EU internal energy market.

Steps

1.4.1.1. Legislation at State level in the field of electricity is adopted and fully aligned with the Electricity Integration Package. The adoption of this law will enable the designation of NEMO ("Nominated Electricity Market Operator"), the establishment of the day-ahead and intraday market and their coupling with single and intraday market.

1.4.1.2. Legislation in the field of gas is adopted and fully aligned with the Third Energy Package. The adoption and full alignment of the legislation in the field of natural gas with the Third Energy Package, through two entity Gas Laws, will facilitate the unbundling the transmission system operator, adopting adequate network tariffs as well as opening the market.

1.4.1.3. Appoint one Nominated Electricity Market Operator (NEMO). By appointment of one NEMO, conditions for day-ahead and intraday electricity market will be created.

1.4.1.4. Unbundling and certification of all electricity distribution and transmission system operators (DSO and TSO) in line with the Electricity Integration Package. A legal framework for unbundling and certification of the transmission system operator is needed.

1.4.1.5. Continue implementation of the electricity integration package in line with Energy Community requirements: Open the day-ahead and intraday market Continue implementation of the electricity integration package by the TSO and NEMOs joining day ahead market coupling with the EU in line with Energy Community requirements. The electricity market is still regulated by a legal framework which is not conducive for day-ahead and intraday market development. Addressing this is crucial for BiH to integrate the electricity market into EU.

1.4.1.6. Electricity price for households reflect the market costs in line with EU best practice (for ex. linking bilateral supply contracts between the generator and the supplier of electricity to annual average of the day-ahead market price). The gradual adjustment of electricity supply prices to market prices is needed in order to create a more competitive and transparent market environment, where prices are determined by supply and demand rather than public intervention. Through this Step BiH will prepare a study aiming to develop different scenarios for deregulations of electricity supply prices for households.