summary of the case
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 assisted extensively 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.
On 24 October 2013, the Ministerial Council decided on the failure by Bosnia and Herzegovina to comply with certain obligations under the Treaty related to the transposition of Directive 2003/55/EC. With the adoption of Decision 2013/04/MC-EnC, the procedure under Article 91 of the Treaty in Case ECS-8/11 is closed. On 18 July 2014, the Secretariat initiated Case ECS-8/11S by submitting a Reasoned Request to the Ministerial Council under Article 92 of the Treaty.