Draft Law on Electricity of FBiH determined

The Government of FBiH is 02.06.2022. established the Draft Law on Electricity of the FBiH, which regulates the electricity policy and planning, electricity activities and permits for their performance, and the regulation of the electricity industry.
The law also covers electricity generation, construction of power plants, distribution, supply and trade of electricity, energy storage, end customers, aggregation of distributed resources, electromobility, security of supply, construction, reconstruction, use and maintenance of electricity facilities, administrative supervision and regulatory oversight. and penal provisions, as well as other issues of importance for the regulation of the electricity sector in the FBiH.
This law, as the general interests of the Federation of BiH, specifies the secure supply of electricity and the provision and delivery of sufficient quantities of electricity needed for life and work of citizens, and business and development of economic and social entities, in a safe, reliable and quality manner.
In order to achieve these general interests, electricity entities are primarily required to provide sufficient quantities of electricity needed for life and work of citizens, and business and development of economic and other entities, while meeting the criteria of cost-effective delivery.
The draft law stipulates that the Government of the FBiH, at the proposal of the Federal Ministry of Energy, Mining and Industry, adopt an annual and three-year balance of electricity by the end of October this year. These documents plan the total production and consumption, as well as the method of electricity supply, the structure of production and consumption, as surpluses or missing quantities of electricity.
The electricity undertaking may, if it is in the general economic interest, be subject to a public service obligation under regulated conditions which may relate to security, including security of supply, regularity, quality and price of supply and environmental protection, including energy efficiency, renewable energy use and environmental protection.
In the explanation of the new law in this area, the Federal Ministry of Energy, Mining and Industry stated that the existing Law on Electricity in FBiH from 2013 made a significant contribution to the development of the electricity sector. However, after its adoption, BiH, as a member of the Energy Community, has committed itself to implementing a number of regulations from the EU legal framework and thus continue the process of liberalization of the electricity market and energy transition to clean energy.
When it comes to the reasons for drafting and passing a new law, a number of reasons and goals have been highlighted. Among them are harmonization with the acquis communautaire and the Energy Community, improvement of the legal framework in the electricity sector and the control system for the construction of production facilities, and the introduction of a ban on the construction of small hydropower plants. One of the important goals is the simplification of administrative procedures for the construction and operation of production plants using renewable energy sources, primarily solar and wind power plants, and the introduction of new categories of participants and activities in the electricity market (active customers, aggregators, energy communities, storage operators).
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