USAID EPA Guidelines for Establishing a Compliance Program

The program aims to prevent discrimination and promote objectivity in the provision of public electricity distribution services. The Compliance Officer is responsible for monitoring the implementation of the program and reporting to the Regulator. The Compliance Program is based on guidelines developed by a working group consisting of representatives from all relevant entities in the BiH Power System. The guidelines were finalized in September 2020 and are applicable to all DSOs in BiH. The program requires DSOs to adopt a Compliance Program and submit it to the Regulator, as well as to appoint an independent Compliance Officer with the prior consent of the Regulatory Commission. The Compliance Officer is responsible for ensuring the independence and independent operation of the DSO in relation to the Vertically Integrated Company (VIK). The officer must develop and adopt a Code of Conduct for management and employees of DSOs, as well as establish principles for mutual relations and joint affairs within VIK. The Compliance Officer must also ensure the accounting separation of DSOs, establish a separate identity and branding of DSO, and protect confidential and commercially sensitive information held by DSO. The Compliance Officer is appointed by the DSO Management Board with the consent of the regulator. The Head of the Compliance Department is elected from among the internal employees of the DSO and serves a term of 5 years, with the possibility of one extension. The Compliance Department may be an independent organizational unit within the DSO, with direct communication and reporting to the DSO administration. The Compliance Program also addresses relations between the DSO and VIK, including the organizational structure of VIK, ownership of distribution property, and the right of DSO to independent loans. The program requires DSOs to have a business policy for the distribution of return on capital and to have approval of the business plan and the level of indebtedness of the DSO. The Compliance Officer must ensure the availability of DSO financial resources and monitor the implementation of the program.