Bosnia and Herzegovina (BiH) Regulatory and Energy Assistance Project (REAP)

The project, implemented by Advanced Engineering Associates International, Inc. as USAID Contractor, aims to provide regulatory and energy assistance to BiH. Article 3(7) of the Electricity Law defines energy efficiency and demand management. An amendment was made to this definition, changing the phrase "interruptible supply" to "uninterrupted supply" and adding the words "in relation to" before generation. This change may have resulted from a misunderstanding of the definition. Interruptible contracts are used to reduce demand, whereas uninterruptible contracts would have the opposite effect. The definition pertains to energy efficiency and demand-side management, and including this change is contrary to its purpose. Recommendations are made to reinstate the word "interruptible" instead of "uninterrupted" and insert the words "over" instead of "in relation to" increasing generation capacity. This would align with the original intent of the definition. Another issue arises in Article 3(7), where the definition of a Physical Person is unclear due to the inclusion of the phrase "in the sense of self-financing." This phrase creates ambiguity, potentially implying that a physical person must finance any generation facilities. It is recommended that this phrase be deleted to avoid misinterpretation. Article 26 of the Electricity Law addresses the qualifications for members of the Regulatory Commission. The qualifications were removed from the Law and replaced with a reference to the Regulatory Commission's Statute. However, the Law provides that the Government will post the position's public vacancy, and the vacancy Commission, Government, and Parliament will act on the applicants and choose a candidate. Placing these qualifications in the Regulatory Commission's Statute has no impact on the Government, Commission, or Parliament. It is recommended that the qualifications be reinserted in the Electric Power Law rather than the Commission's Statute. The REAP Chief of Party, Ognjen Marković, submits these comments to the FBiH Ministry of Energy, Mining, and Industry. The project is supported by the American People, sponsored by the United States Agency for International Development (USAID).