FAQ: Opened electricity market

1.    Opened electricity market – what does it mean?

Starting with January 1st, 2015, every customer will have right to choose its electricity supplier. This means that it will have right to decide from whom it will be supplied with electricity and choose the most suitable supply offer.

Simply, this is called opened electricity market.

 

2.    Who is considered public supplier? Who are they?

Public supplier is the supplier with the obligation to supply eligible customer when customer failed to choose its supplier on the electricity market, in manner and the conditions that are subject to FERK provisions.

Public supplier shall provide universal service to all electricity customers from the category: households, small enterprises and commercial customers.

Public suppliers in the federation BIH are nominated by FBIH Government and these are: Javno preduzeće Elektroprivreda Bosne i Hercegovine d.d. - Sarajevo i Javno poduzeće „Elektroprivreda Hrvatske zajednice Herceg Bosne“ d.d. Mostar, on their respective geographical territories.

 

3.    What is the universal service and who is entitled for it?

Universal service is part of public service that guarantees connection and supply under reasonable prices that could be simply compared and that are transparent. The right to use it is given to category of households, small enterprises and commercial customers.

 

4.    Please name electricity suppliers in the territory of BIH and provide their contacts?

Electricity suppliers in the territory of BIH are legal persons licensed for power supply by competent regulatory body (State Electricity  Regulatory Commission in BIH  - SERC, Regulatory Commission for Energy in the Federation BIH – FERK and regulatory Commission for Energy in Republic of Srpska  - RERS). Contacts of all licensed suppliers in BIH can be found here.

 

5.    What is Distribution System operator (DSO)?

Distribution System Operator (DSO) is legal person licenses for power distribution and is in jurisdiction of operation, control, maintenance, construction and development of power distribution network as well as for connection of new customers and generators.


 

6.    What are tariff rates for users of distribution system (distribution network fee) and what service is paid through these tariff rates?

Tariff rates for the usage of distribution system (distribution network fee) are tariffs applied for billing and invoicing of service for the usage of distribution and transmission network to eligible customers whose facilities are connected on distribution network with the purpose of covering costs of using distribution and transmission network.

Costs of using distribution network consist of distribution costs and costs of distribution losses.

Costs of using transmission network consist of: transmission costs, costs of transmission losses, cost of independent system operator, costs of services of secondary and tertiary regulation and over-accepted reactive energy.

 

7.    What means Supplier of Last Resort and who is entitled for its services?

Supplier of Last Resort is the supplier that shall supply eligible customer with electricity when chosen supplier fails to supply eligible customer for the following reasons:

·         Bankruptcy or winding-up of the chosen supplier,

·         expiration or withdrawal of the license from chosen supplier

·         when customer fails to find new supplier after termination of supply contract with existing supplier, with exception when the termination is the result of non-payment for supplied energy

Suppliers of Last Resort, nominated by decision of FBIH Government are two power utilities, JP Elektroprivreda HZHB d.d. Mostar i JP Elektroprivreda BiH d.d. Sarajevo , on their respective geographical territories, that shall supply eligible customers for the period not longer than 60 days.

Right to be supplied by SOLR form January 1st, 2015 shall be entitled to all eligible customers that are not entitled for universal service.

 

8.    How to contract electricity supply and with whom?

1)    Customers that are entitled for universal service i.e. households, small enterprises and commercial customers and that have chosen to be supplied in the scope of universal service shall sign one supply contract with public supplier that includes also usage of distribution network.

2)    Customer that has chosen its supplier on the market, signs, by its choice, one or two contracts and can choose between two options:

a)    To sign one contract with chosen supplier that would also include usage of distribution network or

b)    Sign two contracts, meaning one with Distribution System Operator – Contract on usage of distribution network and the other with chosen supplier – Electricity Supply Contract.

Depending on the decision how many contracts it has signed, customer will receive one or two bills.

 

9.    Is it possible that, after January 1st, 2015, as a customer of household category of Javno preduzeće Elektroprivreda Bosne i Hercegovine d.d. - Sarajevo I can choose to be supplied by Javno poduzeće „Elektroprivreda Hrvatske zajednice Herceg Bosne“ d.d.  Mostar (and vice versa)?

Each customer, no matter in which category it is now can request switching from one to power utility i.e. existing supplier to another supplier i.e. power utility, but under market price offered by new supplier.

If household customer does not decide upon market supplier but for public supplier (universal service) than it can be supplied only by public supplier on which territory it is settled.

 

10.  Is it possible that, after January 1st, 2015, I remain as eligible customer of Javno preduzeće Elektroprivreda Bosne i Hercegovine d.d. – Sarajevo (Javno poduzeće „Elektroprivreda Hrvatske zajednice Herceg Bosne“ d.d. Mostar) and under which conditions?

All eligible customers after January 1st, 2015, may be supplied by their present suppliers (power utilities) under following conditions:

a)    Customers of categories households, small enterprises and commercial customers have right to be supplied in the scope of universal service with price of service of public supplier which is subject to FERK’s approval or definition,

b)    Other customers shall be supplied on market based and contracted price.

 

11.  If, as electricity customer I decide to switch the electricity supplier, how shall I start this process? Where is my first point of contact?

Eligible customer that has intention to switch supplier shall submit the request to the new supplier in written on the form prescribed by that supplier.

 

12.  How long lasts the process of switching supplier?

Eligible customer is entitled to switch the supplier without costs and in no longer than 21 days from the date of submitting the request.

 

13.  To whom shall I pay the electricity bills during the process of switching the supplier?

During the switching process, customer shall pay the electricity bills to its existing supplier up to the monument when DSO executes the meter reading. Read kilowatt-hours (kWh) on the meter are the final position for the billing to the existing supplier, and the starting position for the billing to the new supplier.

 

14.  May I be supplied by more than one market supplier?

Eligible customer has a right to simultaneously sign contracts with more than one supplier if there is possibility of identifying billing determinants, what is subject of confirmation by the DSO/ISO BIH and BRP (Balance Responsible Party).

 

15.  If I decide as eligible customer to switch supplier after January 1st, 2015 what shall I pay to the new supplier?

a)    If customer from households category signs Electricity Supply Contract that regulates also the usage of distribution network, with the new supplier, it will, in this case receive one bill that will have the following items: purchase of electricity, supply service, using distribution network, renewables fee and corresponding VAT.

b)    If customer from households category signs two contracts: Electricity Supply Contract that with the new supplier and Contract on the usage of distribution network, with the distribution system operator on whose network it is connected, in this case customer will receive two bills: one from the new supplier for supplied electricity and the other from the distribution system operator for the usage of distribution network. The bill from the new supplier shall have following items: purchased electricity, supply service, renewables fee and corresponding VAT. On the bill received from DSO customer shall pay for the usage of distribution network and corresponding VAT.

 

16.  Are we going to have “cheap and expensive” electricity after January 1st, 2015 i.e. “summer and winter” tariffs during the year, in other words, are we going to have daily and seasonal differentiation of the tariff rates after January 1st, 2015?

In the part of the price that is related to distribution network fee, tariff design shall not be changed, in other words, the seasonal and daily differentiation shall be kept. The review of applicable tariff rates for the users of distribution system shall be available on the website of FERK and DSOs.

For other items of electricity, related to electricity and supply service this is not valid. Each supplier has right to design tariff rates in the part of the price that is in its jurisdiction, in accordance with its needs and plans.

 

17.  Is the switching supplier final i.e. may I return to my previous supplier or switch to another supplier if I’m not satisfied with the chosen one? How many times during year one can switch the supplier?

Switching supplier is not the final act, nor there limit on how many times one can switch the supplier. The process of switching supplier, at each new switch, starts from the beginning with all prescribed steps of switching.