The House of Representatives of the Parliamentary Assembly of Bosnia and Herzegovina considered the principles of the Draft Law on the Regulator, Transmission and Market of Electricity in BiH (PZEI), proposed by the Council of Ministers of BiH.
The Council of Ministers of Bosnia and Herzegovina approved the proposal of this law with the mark EI, as a confirmation of appropriate compliance with EU regulations in this area.
The goal of the law is the transposition of 16 EU directives and the Electricity Integration Package, with a focus on the creation of a regulated wholesale electricity market and the establishment of an electricity exchange in Bosnia and Herzegovina, which in this area fulfills one of the prerequisites for the exemption of our country from the application of the Carbon Border Adjustment Mechanism (CBAM).
The governments of the Federation of BiH, Republika Srpska and Brčko District of BiH gave positive opinions on the text of the law.
MP Nermin Mandra (SDA) said during the discussion that the proposed law is necessary, very complex, complex, “I believe, the most complex adopted by this convocation of the Parliament”.
He added that the SDA will support its adoption, and that in the amendment phase they will probably introduce one amendment, related to the state electricity regulator.
– In the explanation of the law, the need for its adoption is stated and the benefits that we get from the adoption of this law are explained. It is unequivocally so and that is why our position is this way. However, certain consequences that will be caused by the adoption of this law should also be pointed out – said Mandra.
Necessary law
MP Saša Magazinović (SDP BiH) agreed with Mandra that this is a necessary, complex and important law.
– We heard, he has the support of both entity governments. The key question is whether the adoption of this law is one of the conditions that will be checked, in order for the economy in BiH to avoid the introduction of CBAM from the date when it is foreseen, which is in a little more than a month. The answer we received is “yes” – said Magazinović, adding that SDP MPs will support the proposed law.
The Deputy Speaker of the House of Representatives Denis Zvizdić (NiP) said that it is one of the systemic laws, which treats one of the most complex topics in Bosnia and Herzegovina, and treats one of the key or most important resources available to Bosnia and Herzegovina.
– There are no ideal laws that can solve all issues, especially those that will arise in the practical implementation of this law. There are certain deficiencies in the solutions that are defined in this law, but the advantages that this law brings in terms of regulation of the electricity sector, because we are talking about the regulator, transmission and market of electricity, and especially the advantages that this law will bring to certain economic sectors when we talk about the payment of CBAM, are far greater than the certain deficiencies that we have in this law, but which we can solve in the practical application of this law, because some articles are defined exactly like that – said Zvizdić.
Risk of tax collection
He pointed out that the adoption of this law does not mean that we have definitely removed the danger of charging a tax for carbon dioxide, because after this we will have to pass a climate law, we will have to adopt a national energy climate plan, we will have to adopt the method and system of trading with greenhouse gases, refresh the national energy strategy, etc.
– But above all, this law is a chance to extend the exemption from CBAM for a certain period of time, which will enable BiH an important transition period, so that they can make all the necessary preparations when we talk about the electricity sector, because our energy independence will depend on the results of that transition in the energy sector, and it is the key to further sustainable development – said Zvizdić, and added that this law has a whole spectrum of good solutions.
MP Predrag Kožul (HDZ BiH) said that this law has flaws, but a very simple cost-benefit analysis clearly tells us that the benefit from the adoption of this law, with potential improvements in the second phase of the adoption of this law, is much greater than the damage that we will potentially suffer from its non-adoption.
“Complex Law”
Minister of Foreign Trade and Economic Relations, Staša Košarac, in his address to the MPs, said that this is a challenge, “that this is a complex law”.
– We are aware of the fact that over a long period of time, from mandate to mandate, we have come to a certain solution, so that the Government of the Republika Srpska and the Government of the Federation of Bosnia and Herzegovina would agree, give the green light. On this content of the law that we are talking about and which is in front of you, we received a positive opinion from the European Energy Community, stating in their opinion that this is a completely sufficient legal intervention so that we could enter the procedure of submitting a request for exemption from CBAM. In this content of the law, we have transposed one directive and 15 regulations of the European Energy Community and that we have worked diligently on this and that we have succeeded in fulfilling the obligations from the third energy package – explained Košarac.
He pointed out that, after the adoption of this law in both houses of the BiH Parliamentary Assembly, “we have a chance to submit an application to get rid of CBAM”.
After the discussion on the Draft Law on the regulator, transmission and electricity market in Bosnia and Herzegovina was finished, the deputies continued the discussion on other points, which will be discussed at the very end of the session, writes Avaz.
