Report on Primary Legislation for Natural Gas Market in Bosnia and Herzegovina

The EU has introduced a common framework in two areas: internal market deregulation for electricity and gas, and climate policy regulation. The EU internal energy market is often referred to as a single project, but its development can be divided into two phases: liberalization and the intensification of the role of EU institutions. The liberalization phase began with the Single European Act in 1987 and the Maastricht Treaty in 1993. Three packages aimed at liberalizing the electricity and gas markets have been approved since the beginning of the process. These packages have transformed the European energy landscape from a collection of state monopolies into a non-discriminatory market place where the rights of the consumer are considered and upheld. The latest package, the Third Energy Package, forms the framework of today's internal energy market in the EU. It is a central topic of this report. The European Commission has implemented a number of climate-related initiatives since 1991, starting with a strategy to limit CO2 emissions and improve energy efficiency. The real starting point for climate change policy in the European Union was the Kyoto Protocol of 1997, under which the EU and its Member States committed themselves to carbon emission abatement targets for the first time. The European Climate Change Program (ECCP) was developed by the European Commission to identify, develop, and implement all the necessary elements of an EU strategy to implement the Kyoto Protocol. The European Union Emission Trading Scheme (EU ETS) is widely regarded as the most significant policy measure designed as part of the ECCP. At a 2007 summit, the EU adopted a 2020 climate policy strategy with targets for emission abatement, renewable energy development, and energy efficiency enhancement. The Gas Directive 2009/73/EC is a key piece of legislation in the EU's energy acquis. It sets out the framework for the internal market in natural gas and requires Member States to ensure that their national legislation is compatible with the Directive. The Directive establishes a set of principles and rules for the organization and functioning of the natural gas market, including the unbundling of transmission and distribution activities, the regulation of access to the transmission and distribution networks, and the protection of customers. In Bosnia and Herzegovina, the primary legislation for the natural gas market is currently being developed. The draft law on electricity and gas regulator and the electricity transmission system and market in BIH establishes the regulatory framework for the electricity and gas sectors. The draft law on natural gas in the Federation of Bosnia and Herzegovina (FBIH) sets out the framework for the natural gas market in the FBIH, including the licensing of transmission, distribution, and supply activities, the unbundling of transmission and distribution operators, and the regulation of access to the transmission and distribution networks. The draft law on natural gas in the Republika Srpska (RS) also establishes the framework for the natural gas market in the RS, including the licensing of transmission, distribution, and supply activities, the unbundling of transmission and distribution operators, and the regulation of access to the transmission and distribution networks. However, there are still gaps in the primary legislation in Bosnia and Herzegovina, particularly in the areas of licenses, unbundling, regulation, tariffs and charges, market opening and customer protection, and security of supply and new infrastructure. The USAID Energy Investment Activity Project (EIA) has been working to support the development of the primary legislation for the natural gas market in Bosnia and Herzegovina. The project has provided technical assistance to the regulatory authorities in Bosnia and Herzegovina to help them develop the necessary legislation and regulations to implement the EU's energy acquis. The project has also worked with the government of Bosnia and Herzegovina to develop a comprehensive energy strategy that takes into account the country's energy needs and the EU's energy acquis. The implementation of the EU's energy acquis in Bosnia and Herzegovina is a complex process that requires significant technical and institutional capacity. The country's regulatory authorities will need to develop the necessary legislation and regulations to implement the EU's energy acquis, and the government will need to develop a comprehensive energy strategy that takes into account the country's energy needs and the EU's energy acquis. The USAID EIA project has been working to support this process and to help Bosnia and Herzegovina develop a modern and efficient energy sector that is compatible with the EU's energy acquis.