GAS MARKET IN BiH MUST BE REGULATED Entity regulator from Trebinje operates on the principle of 'give us the state as a market, and we will operate according to RS Law'

Written for Patria by Almir Bečarević

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The regulatory commission of the Republika Srpska entity, in accordance with the amendments to the Law on Electric Energy from July 2007, was given the authority to regulate issues in the field of energy in Republika Srpska.

This Regulatory Commission regulates issues in the field of electric energy, natural gas, oil, and oil derivatives. Amendments to the Law on Electric Energy of Republika Srpska expanded its competencies in the natural gas, oil, and oil derivatives sectors in order to, especially in the gas sector, prevent the formation of a state regulator for natural gas and to take over the state's functions in this area.

What should be known about the work of this regulator is that everything it does is a mere farce, but with a precisely defined order of things and preparations for projects that will be of entity significance, but with reach across the entire territory of BiH. As evidence for this claim, we have the permits issued by this regulator for the natural gas sector.

Here I provide an example of only two permits, for the companies “Gas-Res“ and “Rafinerija nafte Brod“. As we can see, the permits were issued for the trade and supply of natural gas. Nothing here would be strange if point 5, sub-point 5.1. did not state, I quote: “The permit holder has the right to conduct the activity of trading and supplying natural gas on the territory of Bosnia and Herzegovina in accordance with the law.“

ACCORDING TO WHICH LAW?

Point 6, sub-point 6.1. gives us the answer to this question, I quote: “The permit holder is obliged to adhere to the laws and bylaws of Republika Srpska and the Regulatory Commission and to fulfill the obligations established by the provisions of this permit.“

MEANING:

Republika Srpska adopted an entity Law on Gas, formed an entity regulator, issues permits based on the entity law, and now these permits are valid for Bosnia and Herzegovina, which does not have a law on gas and does not have a state regulator for issues in the field of the gas economy.

If this is not a textbook example of taking over state competencies in the field of gas, I don't know what is. We will issue permits for the territory (an interesting definition of “territory“) of BiH, but we will operate according to the entity law. We need the state to ensure revenues, but we will operate according to the entity law.

This is the essence of the dispute that has been ongoing for 20 years, THE RS ENTITY SAYS: GIVE US THE FEDERATION'S MARKET, AND WE WILL OPERATE ACCORDING TO OUR RULES. There is no state in the laws, but we love your market.

I hope it is now understandable why the gas market needs to be regulated at the state level.