News in English     | 04.10.2022. 12:10 |

Chubb: FBiH citizens will be able to influence their consumption and costs with new energy laws

FENA Senka Trgovčević, Photo:

SARAJEVO, October 4 (FENA) - In light of the energy crisis in the world, it is important that both houses of the FBiH Parliament adopt a set of new laws for the energy sector as soon as possible because citizens will, among other things, have greater rights and the possibility to influence their energy consumption and expenses, stated Director of the US Agency for International Development (USAID) Mission in BiH, Courtney Chubb, in an interview with FENA.  

USAID Energy Policy Activity (USAID EPA) participated in the preparation of new laws on energy and regulation of energy activities in the FBiH, the law on electricity in the FBiH, the law on the use of renewable energy sources and efficient cogeneration, which are currently in the form of a draft in public discussion. After that, the FBiH Ministry of Energy, Mining, and Industry will draft bills, which need to be adopted by both houses of the FBiH Parliament to enter into force.

On this occasion, Chubb explains what the enactment of the aforementioned laws means for citizens, saying that citizens will have better opportunities to produce electricity with a significant reduction in the number of required permits for the construction of solar and wind power plants.

“One of the novelties is the obligation that citizens must be informed about the measures they can take so that their electricity is not cut off, such as advice, installment payments, and more. As a whole, the new laws will ensure the improvement of the entire energy sector in the Federation of BiH, facilitate investment and encourage the use of renewable sources, which will ultimately improve the security of supply,” Chubb pointed out.

USAID EPA with the FBiH Ministry of Energy, Mining and Industry conducted a detailed analysis of the legal framework for investing in the construction of energy infrastructure in the Federation of BiH and identified legal and other obstacles faced by investors in all areas that are significant for issuing permits.

These analyses resulted in recommendations for changes to the legal framework that lead to the improvement of the investment environment in the Federation of BiH.

When it comes to the electricity sector, the aforementioned analyses, says Chubb, indicated that to improve the investment environment, it is necessary to significantly reduce the administrative burden on investors, simplify the procedures for issuing all permits, and especially ensure simplified procedures for the construction of production facilities that use renewable sources energy.

In addition to the above, a simplified procedure for connecting production facilities that produce electricity from renewable sources that are used for the end customers' own needs is being introduced.

“It is particularly important to point out that the new law follows the best international practice and introduces a certification system for authorized installers of small solar power plants and wind power plants. Authorized installers will perform all tasks related to the installation and commissioning of this type of facility, which means that citizens will no longer have to communicate with a large number of entities,” Chubb emphasized.

With the new regulations of the European Union, the Federation of Bosnia and Herzegovina, by adopting a set of new energy laws, started the reform process of regulating the energy sector in a way that enables all participants and citizens to participate in the production of electricity, not just consumption.

“Special emphasis of the new EU regulations is placed on strengthening the rights of end customers who must not be put in a disadvantageous position due to the transition process. Specifically, the EU is looking for the establishment of a market that functions on the principles of competitiveness, equal market competition, and transparency,” says Chubb.

EU regulations dictate that it is necessary to facilitate investment and enable easier and faster construction of new power plants to achieve the established climate and energy goals.

“In this regard, the new set of laws takes over provisions that meet almost all of the stated goals. The use of renewable energy sources, energy efficiency, and security of supply were defined as the primary goals of the overall energy policy, and all participants in the energy sector were tasked with working to fulfill these goals. The new laws will also improve operations in the sector based on market principles, bring a higher degree of transparency, introduce new rights for end customers, improve the work and independence of the regulatory commission, and enable better supervision of all entities in the sector. Finally, it is important to point out that the application of new laws will emphasize the obligation of the energy sector as a whole to take care of environmental protection, all to prevent climate change,” explained Chubb.

In addition to these three laws, USAID believes that it is important to adopt amendments to the Law on Energy Efficiency.

“USAID has prepared amendments to the Law offering a solution to finance energy efficiency measures in BiH, that is, how to help citizens pay for thermal insulation, new windows, improved heating systems, and other energy efficiency measures in their houses and apartments. Considering the very challenging winter period ahead, the implementation of energy efficiency measures on a larger scale will bring new jobs, stimulate the economy and improve energy security,” Chubb said in an interview with FENA.

(FENA) A. B.

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