Council of Ministers adopts key electricity market bill in line with EU regulations

The legislation, welcomed by the Energy Community Secretariat, will now be forwarded to the Parliamentary Assembly of BiH for adoption under urgent procedure. It will be accompanied by a detailed table outlining its alignment with EU regulations and the opinions of all relevant institutions. Prior to this step, the governments of the Federation of BiH, Republika Srpska, and the Brcko District gave their formal approval to the text.

According to the Council of Ministers, the draft law aims to incorporate 16 EU directives, including the Electricity Integration Package. Its focus is on establishing an organised wholesale electricity market and creating a national electricity exchange, both key requirements for BiH to gain exemption from the Carbon Border Adjustment Mechanism (CBAM).

The proposed legal framework supports the objectives of the Growth Plan Reform Agenda and envisions the integration of BiH’s electricity market with those of other Energy Community contracting parties and the EU.

Drafted by the Ministry of Foreign Trade and Economic Relations, the bill lays the groundwork for Bosnia and Herzegovina to fulfil its obligations under the Energy Community Treaty and the Stabilisation and Association Agreement. It also opens the door to increased investment in renewable energy and a cost-efficient decarbonisation of the electricity sector.

The overarching goal is to ensure the efficient use of electricity, secure supply to consumers, and foster competition in line with modern energy market models. This approach is backed by the strong technical capacity of key sector stakeholders.

The bill was prepared by an inter-ministerial working group comprising representatives from the Ministry of Foreign Trade and Economic Relations, relevant entity ministries, the State Electricity Regulatory Commission (DERK), the Independent System Operator in BiH, and Elektroprenos BiH, in close cooperation with the Energy Community Secretariat.