Bosnia and Herzegovina

Member Profile

Regulatory Commission for Energy in Federation of Bosnia and Herzegovina (FERK)

  • Blajburških žrtava 33, 88000
    Mostar, Bosnia and Herzegovina
  •  +387 36 449900 
  •  kontakt-at-ferk.ba 
  • www.ferk.ba

Sectors Regulated:

  • Electricity

Establishment

  • Established in 2013
  • with Law on Electricity in FBiH (Official Gazette FBIH, No. 66/13 and 94/15) dated 28/08/2013. Operational from September 5th, 2013

Responsibilities

  • Legal basis
  • Law on Electricity in FBiH (Official Gazette FBiH, No. 66/13 and 94/15).
  • Responsibilities
  • Electricity
  • Responsible for approval of tariff and price, licensing of companies in electricity and monitoring of their activity, and developing and approving all the secondary legislation in the electricity, and resolving customer requests/complaints.
  • FERK’s jurisdictions under new law are as follows:
  • supervise and regulate the relations between generation, distribution and customers of  electric power, including electric power traders according to law and regulations,
  • monitoring electric power  market,
  • define the methodology and criteria for setting prices of electric power supply to non-eligible customers , use adopted methodology and supervise application of tariff rates for non- eligible customers, define methodology  and criteria for setting public supplier’s price and supervise application of public supplier’s price,
  • define methodology and criteria for tariff rates, terms and conditions for use of distribution systems. Tariff rates should enable necessary investment  in distribution network, which should be done in a way to ensure sustainability and development of network,
  • determine tariff rates for non-eligible customers,
  • determine public suppliers’ price until full market opening and approve public supplier’s price after full market opening,
  • define methodology on determining terms, conditions and one-off fee for   connection to distribution network,
  • approve the amount of one-off fee for connection to distribution network,
  • issuing, renewing, transfer and revoke license for generation, distribution, supply, trade and for RES and Cogeneration Operator,
  • issuing initial permit for construction of direct electric lines,
  • adopt General Condition for Electricity  Supply and Grid Code,
  • define methodology on determining guaranteed purchase price for electrical power  generated from renewables and cogeneration,
  • defining methodology on determining cost of coal used in generation of electricity until full deregulation of generation,
  • determining cost of coal used in generation of  electricity in thermal power plants until full deregulation of generation,
  • prescribe procedures and criteria for choosing Supplier of Last Resort including duration of service and supervise application of  service price of Supplier of Last Resort,
  • start a procedure of issuing violation orders in accordance with penalty clauses of  law,
  • define methodology to determine quantity and price of unlawful consumption of electrical power,
  • arbitrate as prescribed in the law.
  • New Law on use of RES and Efficient Cogeneration went into force on 19th of September 2013 (Official Gazette no. 70/13 and 4/15) by which Regulatory Commissions’ jurisdictions are:
  • defining Rule book on obligatory target share and acceptance of electrical power generated from renewables,
  • defining methodology on determining feed-in price for different types of renewable technology,
  • defining methodology on determining feed-in price for different types of renewable technology,
  • defining Rule book on micro-generators from RES, as well as educating public on feed-in tariffs,
  • developing certain educational programs and trainings.
  • Oil
  • In accordance with the Law on Oil Products in the FBIH dated July 2nd, 2014 (Official Gazette FBIH 52/14), Article 2, clause s) FERK has jurisdiction over this segment of energy sector.
  • The jurisdictions of FERK, in the sense of this law are the following (Article 17):
  • monitoring and regulation of relations between importers, wholesalers, retailers, transporters and customers of oil products, pursuant this law and acts of Regulatory Commissions;
  • issuance and revocation of licenses for performance of energy activities;
  • Regulatory Commission ensures non-discrimination, efficient competition and efficient functioning of oil products market, paying special attention to safety of oil products supply.
  • Article 18 also specifies the basic obligations of FERK:
  • In the performance of its duties and functions, related to this law, regulatory Commission shall:
  • ensure transparent and equal relations between all market participants, pursuant policy and reform of oil sector;
  • protect rights of participants in the oil sector (importers, wholesalers, retailers, transporters and customers of oil products) harmonizing their interests;
  • create conditions for competition on the oil products market.
  • FERK also acts as the second degree dispute resolution body upon

    complaint/request of the applicant for the issuance of initial or electric power permit, for the applicant that has been rejected to access the network or is not satisfied with the conditions for the network access, and the arbitration in front of FERK may be launched, when FERK as Arbiter, makes the award.

  • Authorities
  • Independence: Independent institution

    Supervised by: Parliament

    Reports to: Parliament on annual basis

    Appeal process: Individual acts made by FERK are final. It is possible to start administrative lawsuit against FERK’s individual acts at court of jurisdiction. The decisions of FERK remain in force pending the completion of appellate proceeding.

  • Award made by FERK in Arbitration in front of FERK has the force of legal valid verdict for the parties.

Organisational Structure

  • Internal Structure
  • Parliament of Federation BiH, on proposal of FBIH Government with previous approval obtained from President and Vice Presidents of Federation BIH is appointing President and two Commissioners for Regulatory Commission. The process of appointing the members of the Regulatory Commission must ensure the representation of the constituent peoples in the Federation.
  • In accordance with the Law on Electricity and Statute of the Regulatory Commission, it is prescribed that the Commissioners may rotate in the post of President. The President’s term of office shall be one year.
  • New Statute of Regulatory Commission for Electricity in Federation BIH (Official Gazette FBIH, No. 24/14 and 91/15) prescribes, among other things, the internal organization of FERK. FERK consist of five organizational units: Legal Department, Licensing and Technical Department, Tariff Department Financial and Administrative Department and Office of Chief of Staff and newly proposed Department for Coal.
  • Working Employees
  • Number of Commissioners: 3
  • Number of Staff: 28
  • Budget
  • License application one-off fees and regulatory fees

Population: 3 861 912 (2016 est.) 

GDP / Capita: $ 4 289 (2016 est.)

Territory: 51 197 km2 (129. in World rank)

Information will be uploaded soon.

Chairperson

Mile SRDANOVIĆ - President

Licensing and Competition Committee Member

Monija NOGULIĆ - Specialist for Distribution /Licenses

Tariff and Pricing Committee Member

Igor GLIBIĆ - Head of Tariff and Market Department

Anton MARUŠIĆ - Tariff Expert

Customers and Retail Markets Working Group Member

Marijana MATIJEVIĆ - Head of Legal Department

Aida MULIĆ-HADŽIOSMANOVIĆ - Legal Specialist

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