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

Market opening involves allowing end-use customers to choose their own suppliers, with household customers able to do so as of January 1, 2015. The financial impact of market opening on commercial and household customers' prices was a key concern. To address these issues, the USAID REAP organized training sessions for the two Entity regulators. The training was conducted by Mr. Donald Hertzmark, an international energy specialist with extensive experience in energy economics and analysis. Hertzmark emphasized that market opening is a complex process that requires a clear separation of generation, supply, and distribution functions, as well as transparent cost allocation. Additionally, tariffs must be designed to reflect actual costs. The regulators recognized that market opening involves policy questions that require cooperation and decision-making among governments, regulators, and utilities. They acknowledged that a comprehensive effort is necessary to achieve market opening. The training sessions were an essential step in this process, providing regulators with the necessary knowledge and understanding to address the challenges associated with market opening. The REAP project focused on providing technical assistance to the regulators, including training and capacity building. The project's goal was to support the development of a competitive electricity market in BiH, which would ultimately benefit consumers through lower prices and improved services. The project's success was dependent on the cooperation and commitment of all stakeholders involved. The REAP project's efforts were supported by the American people through the United States Agency for International Development (USAID). The project's activities were designed to promote economic growth and stability in BiH, while also improving the country's energy sector. The project's impact was expected to be felt across the country, with benefits extending to both commercial and household customers.