Case ECS-01/10: Bosnia Herzegovina / State aid

summary of the case

registered: ex officio 2010

 

 

 

Since the entry into force of the Energy Community Treaty in 2006, the Contracting Parties are under an obligation to implement, i.e. to transpose and apply to each individual case, in their energy sectors the principle prohibition of State aid as applicable within the European Union. This commitment entails the obligation to establish institutions and procedures apt to enforce the State aid prohibition. As State aid may distort competition and affect cross-border trade in energy, the control of aid granted by public authorities is of key importance for the establishment of a regional energy market based on competition.

To the Secretariat’s knowledge, Bosnia and Herzegovina has, to this date, not enforced the State aid law in the energy sectors. Under these circumstances, it is in a state of non-compliance with Articles 6 and 18 of the Energy Community Treaty.