State of Compliance
The Competition Act of Bosnia and Herzegovina, adopted in 2005 and amended in 2007 and 2009, is in line with the competition acquis.
The Competition Council is not actively conducting enforcement activities in the energy sectors. Although it rendered an opinion on the competitiveness of the electricity market in 2016/2017 and identified potential competition concerns, no follow-up steps were taken. However, full compliance with the Energy Community Treaty’s obligation on enforcement of the competition acquis requires the Competition Council to investigate the behaviour of individual market players and actively enforce competition law by way of investigations.
The Competition Council’s cooperation with the Secretariat and other national competition authorities in the framework of the Energy Community Competition Network is rather limited.
State Aid Law
State Aid Law
The Law on the System of State Aid is generally in line with the State aid acquis.
The independence of the State Aid Council remains questionable as both the decision-making body as well as the secretariat are closely linked to the Government in terms of nomination of its members and financing. Furthermore, effective enforcement of the State aid acquis is hindered by the limited human resources of the enforcement authority.
The State Aid Council actively cooperates with the Secretariat and other national State aid authorities in the framework of the Energy Community State Aid Network.
However, the State Aid Council did not take any enforcement action in the energy sectors since the Law’s entry into force in 2012. The Secretariat forwarded to the State Aid Council information regarding two cases of state guarantees for thermal power plant projects (Banovici and Tuzla 7); however, it closed both cases due to incomplete notifications by the alleged State aid grantor. The State Aid Council is rather collecting data reported by State aid grantors without assessing the compatibility of the support measures. Therefore, implementation of the State aid law and its enforcement are yet to be achieved. This is subject to an open dispute settlement case initiated already in 2010 (Case ECS-1/10).
Furthermore, the Secretariat received complaints regarding State support in the form of settling unpaid debts of companies active in the mining sector.
Although the State aid acquis is fully transposed into national legislation, full compliance with the Treaty’s obligations in the area of State aid require an independent State aid authority which actively enforces the acquis.