The Law on Amendments to the Law on Energy was published in the Official Gazette of the Republic of Srpska No. 16/23.
The reasons for the adoption of this Law stemmed from the need for mutual harmonization of laws with those governing different fields of energy, regulating various issues related to electricity, natural gas, renewable energy sources and energy efficiency.
As there was a need to harmonize the Law on Energy of the Republic of Srpska, which entered into force in 2009, with the Law on Electricity, the Law on Gas, the Law on Renewable Energy Sources, the Law on Energy Efficiency and the Energy Development Strategy, certain changes and amendments were made by which the existing regulations were significantly improved and specified in terms of terminology and content.
Primarily, changes were made regarding the exact terms and definitions used in the Law. The term “certificate” on the origin of electricity has been replaced by the word “guarantee” and represents a document that serves the electricity producer to prove that the electricity produced in a facility was produced from renewable energy sources or in cogeneration with a considerable degree of efficiency and must contain the amount of electricity, the source of energy used for its production, the place and date of production as well as other data that contribute to the accuracy and reliability of the document. In the same Article of the Law, the term “economically appropriate method” was corrected to “economically profitable method”, as well as the modification of the term “qualified customer” — the end customer who has acquired the right to buy energy of his choice in accordance with the regulations governing the energy market into the term “end customer” — a customer who buys energy for his own needs. In addition, the definition of the term “public service obligation” was amended, which presently reads: “public service obligation represents the obligation of energy entities to perform certain energy or utility activities as public services.”
The changes made additionally determined and specified the energy policy and energy development planning of the Republic of Srpska, and Article 5 of the existing Law was amended in such a way that the term energy development strategy was redefined, supplementing and harmonizing it with the terms from the Law on Renewable Energy Sources and Energy efficiency, which presently reads: “The energy development strategy defines the energy needs of the Republic, development priorities, long-term goals for the development of individual energy activities, the way to ensure long-term, safe and high-quality energy supply, sustainable use of natural resources, while improving environmental protection with the aim of preventing climate change, increasing energy production from renewable sources and energy efficiency, development of the energy market and its connection with regional markets and other elements of importance for the implementation of energy policy.”
A significant change was made in terms of competence for the adoption of the Energy Development Strategy, which, in accordance with the changes, is adopted by the Government of the Republic of Srpska on the proposal of the Ministry responsible for energy, while under the previous legal formulation, the competence belonged to the National Assembly of the Republic of Srpska on the proposal of the Government of the Republic of Srpska for a period of 20 years.
With the adoption of the Law, a legal basis was created for the adoption of the Energy and Climate Plan of the Republic of Srpska, and Article 6 regulates its definition, adoption, competence for its preparation, and its content. Thus, this Article stipulates that the objectives of the development of the Republic of Srpska are defined by the Energy and Climate Plan of the Republic of Srpska. The Energy and Climate Plan is adopted by the Government of the Republic of Srpska for a period of up to 10 years, on the proposal of the Ministry responsible for energy, environmental protection and scientific and technological development. The report on the implementation of the Energy and Climate Plan, with a proposal for possible changes, is drawn up by the ministries referred to in paragraph 3 of this Article and submitted to the Government every two years.
Furthermore, changes were made in the part of the Law that refers to the term of energy activities and permits. Article 11 defines energy activities of general interest performed in the public service obligation system. In accordance with the above, by introducing paragraph 2 in this Article, it is defined that the public service obligation may be imposed on energy entities, in accordance with significant laws governing certain areas, if they perform the activities of electricity production and supply and trade in electricity, natural gas and thermal energy and management of facilities for liquefied and compressed natural gas if they are connected by a transport or distribution system.
The amendments to Article 12 of this Law redefined the energy activities for which the above-mentioned permit is required, and this Article was amended in points a), dj), e). The permit referred to in paragraph 1 of this Article is required to be possessed by energy entities that perform the energy activity of electricity production in production facilities whose total power exceeds 1 MW and heat energy production with a power of more than 0.3 MW, entities that deal with distribution and management of the distribution system electricity, supply and trade of electricity and distribution and management of the distribution system, trade and supply of natural gas, management of facilities for liquefied natural gas, management of facilities for compressed natural gas. Changes were also made regarding activities that do not require a permit. Previously, it was defined that the same is not required for the performance of energy activities for the production of electricity that is produced exclusively for own needs or is produced in production facilities with a power of up to 1 MW, while the established changes defined the absence of the obligation to obtain a permit in the case of the production of electricity in power plants of installed capacity up to 1 MW, unless one producer produces electricity in several facilities with a total power of more than 1 MW, electricity production that is produced for own needs, electricity production in new power plants, no longer than six months until obtaining a use permit.
A novelty in the Law represents the issue of financing the Regulatory Commission for Energy of the Republic of Srpska, in such a way that the issue of financing is harmonized with the laws in the field of renewable energy sources. The amendments defined that the obligation to finance the work of the Regulatory Commission is provided from annual fees from energy entities, users of licenses for performing one or more energy activities, one-time fees for procedures carried out according to requests, as well as from other sources, in accordance with the regulations in the field of renewable energy sources. Regarding the budget of the Regulatory Commission, the legislator predicted that it would be adopted by the National Assembly on the proposal of the Regulatory Commission, while under the previous regulation, the budget proposal was submitted exclusively by the National Assembly of the Republic of Srpska. Therefore, in paragraph 3 of the same Article, it is stipulated that the Regulatory Commission, when preparing the budget proposal, takes into account the human and material resources necessary for the execution of the competences prescribed by law, including international obligations.
Finally, the text of the Law was supplemented by the introduction of Article 39a. which stipulates the obligation of the Government of the Republic of Srpska to adopt the Energy and Climate Plan of the Republic of Srpska within a year from the entry into force of the Law.
From the foregoing, we can conclude that the all these changes represent a significant improvement of the legislation in the field of energy, both due to the harmonization of regulations with other laws governing the issues of electricity, natural gas and renewable energy sources, as well as due to the fact that the changes made represent a step forward towards harmonization with the legislation of European countries in this area.
In addition, the most significant novelty, i.e., the obligation to adopt an Energy and Climate Plan will define in more detail the implementation of the energy policy of the Republic of Srpska in accordance with its significant potential, which will move towards further development, decarbonization of the power industry and maximum use of natural resources for the production of electricity in accordance with the Law on Renewable Energy Sources.
The amendments to the law entered into force on February 16, 2023.
Author:
Knezevic Jelena, e-mail: [email protected]
