Market and Regulated Prices

MARKET AND REGULATED PRICES IN THE ELECTRIC POWER SECTOR

What does the eligible customer pay?

Total costs of electricity for the eligible customer comprise the following:

a) electricity handed over at freely contracted price pursuant to the Contract on supply concluded with the supplier;

b) costs of the network usage at regulated prices which are related to the following:

• Transmission network usage, ancillary services and operations of Independent system operator (ISO) at the prices prescribed by the State Regulatory Commission for electricity (SERC), for end users connected to the transmission network (from the category of consumption at 110 kV);
• Distribution network usage, at tariff rates prescribed by RERS which cover the distribution network costs and all transferred costs calculated for services at the transmission network. for end users connected to the distribution network;
• Settlement costs from deviations pursuant to the Market rules.

Eligible customer may pay all costs of delivery and supply of electricity through its supplier, and is entitled to be separately invoiced the services calculated by the system operator and to pay the grid tariff separately whereby electricity taken is to be paid to the supplier.

Eligible customer connected to the transmission network, i.e. customer from the category of consumption at 110 kV pays as follows:

• the price of generation and supply of the electricity taken at the price contracted with supplier of eligible customers;
• tariff for the transmission services:

-            a part related to energy: 0,00566 BAM/kWh,

-            a part related to capacity: 1,478 BAM/kWh

For more details: SERC decision on determination of the tariff for electricity transmission services

• tariffs for ISO services: 0,000435 BAM/kWh

For more details: SERC decision on determination of tariffs for ISO operations and ancillary services

• Tariff for ancillary services of the transmission losses: 0,07026 BAM/kWh;
• Tariff for ancillary services of the secondary and tertian regulation of 0,002128 BAM/kWh and excessively taken reactive electricity of 0,01 BAM/kVArh

For more details: SERC decision

• Settlement costs from deviation of the Balance responsible party (BOS), whereby in the first phase of the market opening, pursuant to the Market rules approved by SERC, BOS in Republic of Srpska is "Elektroprivreda Republike Srpske", a joint stock company Trebinje.

Eligible customer connected to the distribution network pays as follows:

• The price of generation and supply of the electricity taken at the price contracted with the supplier of eligible customers,
•  The tariff for usage of transmission services, ISO services, ancillary services and for usage of distribution services according to the tariff rates for distribution system users determined by RERS, pursuant to the appropriate SERC decision

For more details: Decision on determination of tariff rates for distribution system users in Republic of Srpska

• Settlement costs of deviations for the Balance responsible party (BOS), whereby in the first phase of the market opening, pursuant to the Market rules approved by SERC, BOS in Republic of Srpska is "Elektoprivreda Republike Srpske", a joint stock company in Trebinje.

Benchmarking of electricity prices for eligible and non-eligible (tariff) customers

The price of electricity which the eligible customer freely contracts with the supplier of eligible customers covers the costs of procurement of electricity from generator or trader and costs of the services of the supplier.

In tariff rates for non-eligible (tariff) customers, costs of procurement of electricity comprise the calculated costs of generation of electricity and costs of the supply services at the prices approved by RERS.

The generation price paid by non-eligible customers, contained in the Tariff rates for non-eligible customers of electricity in Republic of Srpska effective since 1 January 2010, determined as an average weighted price of generation of electricity at the plant outlet in Republic of Srpska is the same for all non-eligible customers in Republic of Srpska and it amounts to 0.0541 BAM/kWh.

Transitional period

Taking into account changes in relationships between end users of electricity and supplier which follow the market opening, as well as the need to protect users in the period of establishing competitive market, RERS prescribed in the Rule special rights and duties of eligible customers in the transitional period of the market opening which lasts until 01 January 2012.

Provisions of the Rule determine the suppliers of last resort of eligible customers and their rights and duties are determined during the transitional period of the market opening.

During the transitional period of the market opening, eligible customers are entitled to decide whether to choose suppliers on their own or to be supplied as tariff customers whereby the supplying method may be modified once a year, starting from 1 January next year, while the procedure and deadline for declaration on the supplying method were prescribed by the Rule.

During this period, big and medium eligible customers are also entitled to have the supplier of last resort for a month, if their chosen supplier stops supplying provided that there is a contract concluded with the supplier of last resort.

Small eligible customers (end users which structures have connecting capacity less than 42 kW) are entitled to have the supplier of last resort for the period of three months, if their chosen supplier stops supplying, and also in case that they do not manage to conclude the contract on supply as eligible customers.

The prices of electricity for eligible customers who decide to be supplied as tariff customers in the transitional period of the market opening correspond to the tariff rates for their accompanying category of consumption and tariff group.

The electricity price based on the supplier of last resort for big and medium eligible customers is being negotiated, while RERS controls the contract requirements and its harmonization with the Rule.

The electricity price based on the supplier of last resort for small eligible customers is approved by RERS following the application of the supplier of last resort.

In the transitional period, end users from the category of households are still tariff customers and are supplied with electricity at regulated prices approved by RERS.

RERS shall also monitor and analyze the effects resulting from application of this Rule in the process of the gradual market opening of electricity in Bosnia and Herzegovina, and harmonize its provisions with the modified circumstances and actually achieved level of the electricity market development.

More: Decision on Tariff for the Opperation of the Independent System Operator in BiH (SERC)
More: Decision on Tariffs for Ancillary and System Services (SERC)
More: Decision on Tariff for the Services of Elektroprenos BiH (SERC)