On 7 October 2011, the Secretariat sent an Opening Letter to Bosnia and Herzegovina in accordance with Article 12 of the Rules of Procedure for Dispute Settlement. In the Opening Letter, the Secretariat takes the preliminary view that Bosnia and Herzegovina failed to fulfill its obligations under the Energy Community Treaty by not having put in place appropriate legislation in the gas sector.
The situation of the gas sector in Bosnia and Herzegovina has long been an issue of concern to the Secretariat. This goes in particular for the lack of legislation and regulatory institutions at the state level, but also concerns the arrangements made at the level of the two entities, Republika Srpska and the Federation of Bosnia and Herzegovina. The lack of an appropriate legal framework constitutes an obstacle to the development of the gas sector both on national and regional level, and therefore jeopardizes the achievement of a key objective of the Energy Community Treaty. The Secretariat expressed its readiness to assist in overcoming this situation.

In the Secretariat’s view, issues of non-compliance by Bosnia and Herzegovina in the gas sector include the lack of regulatory authorities for gas in the Federation of Bosnia and Herzegovina, the lack of proper legal, functional and account unbundling in either entity, the lack of properly set and published network tariffs, issues related to exemptions for new infrastructure, the lack of market opening in line with the deadlines set in the Gas Directive 2003/55/EC. The Secretariat further requests Bosnia and Herzegovina to transpose the provisions of the Gas Regulation 1775/2005 and the Security of Supply Directive 2004/67/EC.

Given the manifold issues of non-compliance identified by the Opening Letter, the Secretariat is of the opinion that the legal framework for the gas sector in Bosnia and Herzegovina should be thoroughly reviewed and amended or replaced by legislation at State level. It expressed its readiness to assist the domestic authorities in this task.
By sending an Opening Letter, the Secretariat initiates a preliminary procedure, the purpose of which is giving the Party concerned the possibility, within two months, to react to the allegation of non-compliance with Energy Community law, and enabling the Secretariat to establish the full background of the case.
 

According to Articles 6 and 16 of the Rules of Procedure for Dispute Settlement, interested parties may be granted access to the case file and may submit written observations on the present case to the Secretariat within one month from today.

All requests for information on this case should be addressed to the Legal Counsel at dirk.buschle@energy-community.org or +43 1 535 2222 24 or +43 1 535 2222 24 and should make reference to the case number ECS-8/11.