A meeting was recently held at the headquarters of power utility EPBiH, bringing together key representatives from the energy sector to address the ongoing legal unbundling of electricity distribution from other energy-related activities. This separation, however, depends on amendments to existing legislation, as the creation of new distribution companies cannot proceed under the current legal framework.
Federal Minister of Energy, Mining and Industry Vedran Lakic met with the management of two state-owned power utilities, as well as officials from the Energy Regulatory Commission of the Federation of Bosnia and Herzegovina (FERK) and consultants from PwC. The discussions focused on the legal requirement to establish separate entities responsible solely for electricity distribution. These companies are expected to function independently from other energy operations within EPBiH and EP HZHB, in line with legal obligations.
The requirement for this structural separation arises from the Law on Electricity, which took effect in August 2023. The law mandates that the unbundling process be implemented in the same way by both major federal electricity providers.
Consultants supporting the technical aspects of the unbundling process and ensuring compliance with best regional practices and Energy Community guidelines have pointed out several major challenges. They noted that key barriers to progress can only be addressed through changes in legislation, which would significantly impact the timeline and implementation of the separation process.
During the detailed discussions, participants identified specific legal frameworks, including laws on commercial enterprises, labor, and electricity, that need to be revised. Updating these laws is considered essential for advancing both the planning and operational stages of unbundling.
Considering the deadlines set by the new electricity law, Minister Lakic highlighted the importance of preparing a comprehensive list of required legal amendments by early June. These changes are expected to enable the continued and effective execution of the unbundling process.
