Foundation of the BIH Electricity Market

Prior to liberalization, the market was characterized by a lack of internal competition, with all energy activities regulated by the government. The energy balance was maintained through a system of tariffs that defined prices for energy consumption, and revenues and costs were equilibrated through a regulated framework. The organization scheme of ELES, the Slovenian Transmission System Operator, before liberalization consisted of several departments, including trading, power transmission, infrastructure, and system operation. However, with the introduction of new legislation, the market structure underwent significant changes. The European Union's directives, including 96/92/CE and 90/547/CE, played a crucial role in shaping the new market framework. The Energy Act of 1999, passed in Slovenia, further solidified the changes brought about by the EU directives. The act established the Electricity Market Operator and the Energy Agency, and introduced licenses for energy activities. The concept of an eligible customer was also introduced, allowing distribution companies and customers with a connected load above 41 kW to choose their own supplier. Eligible customers represented approximately 60-65% of the Slovenian market. The new market structure led to the separation of regulated activities, such as transmission and distribution, from market activities, including purchase, sale, import, and export of electricity. The Nuclear Power Plant, Thermal Power Plants, and Hydro Power Plants were integrated into the new market framework, with the Nuclear Power Plant purchasing power from the market, and the Thermal and Hydro Power Plants selling their output to the market. The Slovenian market according to the new legislation showed a significant shift towards a more competitive and liberalized framework, with ELES playing a crucial role in ensuring the stability and security of the transmission system.