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Initial License REGULATORNA KOMISIJA ZA ELEKTRIČNU РЕГУЛАТОРНА КОМИСИЈА ЗА ЕЛЕКТРИЧНУ ENERGIJU U FEDERACIJI EНЕРГИЈУ У ФЕДЕРАЦИЈИ БОСНЕ И BOSNE I HERCEGOVINE - F E R K XЕРЦЕГОВИНЕ - Ф Е Р К INITIAL LICENSE FOR PERFORMANCE OF THE POWER ACTIVITY POWER DISTRIBUTION NAME OF POWER COMPANY: JAVNO PODUZEĆE ELEKTROPRIVREDA HRVATSKE ZAJEDNICE HERCEG BOSNE dioničko društvo Mostar SEAT OF POWER COMPANY: Ulica Zagrebačka 1, 88000 Mostar ID NUMBER OF POWER COMPANY: 4227248350007 REGISTRY NUMBER OF THE LICENSE: 06-03-516/05/05 LICENSE VALIDITY: 01.12.2005. -30.11.2007. DATE: 01.12.2005. ___________________ Risto Mandrapa, FERK President Đulizara Hadžimustafić, Zdenko Šimunović, FERK Commissioner FERK Commissioner Operation License- Power Distribution for Elektroprivreda HZHB d.d. Mostar LICENSE CONDITIONS 1. GENERAL PROVISIONS 1.1. Regulatory Commission for Electricity in Federation of Bosnia and Herzegovina (FERC) issues initial license for performance of power distribution activity to by JP Elektroprivreda HZ HB d.d. Mostar (hereinafter called The Licensee) in accordance with the Licensing Rule (Official Gazette FBIH No. 29/05), based on the application submitted on 03.08.2005. 1.2. Licensee’s Seat: Zagrebačka ulica broj 1, 88000 Mostar Phone: 036 323 216, Fax: 036 310 847 1.3. E-mail address: [email protected] 1.4. The authorized responsible person is General Manager Vlado Marić, phone number: 036 310 847, fax number: 036 317 157, 1.5. This license enters into force on 01.12.2005 and it is valid for two years. i.e. 30.11.2007 2. DEFINITIONS The words and terms in this license will have meaning provided within the Electricity Law FBIH (Official Gazette No. 41/02, 24/05 and 38/05), as well as FERC’s rules and regulations. 3. THE PERFORMANCE OF THE LICENSED ACTIVITY 3.1. The Licensee is entitled to perform the power distribution activity on the distribution facilities and plants (lines, substations and switchyards), voltage levels 35 kV, 20 kV, 10 kV and 0, 4 kV, that are in his fixed assets or on which it has legal basis for exploitation listed in Attachment 1. 3.2. The The Licensee will perform the power distribution activity in the area of Federation of Bosnia and Herzegovina where it is registered and this includes area of Herzegovina-Neretva Canton, Central Bosnia Canton, Canton 10, West Herzegovina canton, Posavina Canton in the municipalities listed in Attachment 2. 3.3. The Licensee is authorized to issue electric power consents for connectiong to power grid within its geographic area, consistent with the terms of Grid Code, Rule on Connections and Cost Schedules that should be developed by Licensee not later than 30.06.2006. and submit it for FERC’s approval. License Registry Number 06-03-516-05/05 Page 2 of 12 Operation License- Power Distribution for Elektroprivreda HZHB d.d. Mostar 3.4. The Licensee is authorized to administer contract agreements for access to and connection to the distribution network with the customers from its distribution area. 3.5. The Licensee shall inform FERK on all planned and realized activities related to assets for performance of licensed activity (licensed assets) and on FERC request it shall submit the contract and specifications of works related to the third party services. 4. OBLIGATIONS OF THE LICENSEE 4.1. Laws, regulations, technical standards and approved tariffs 4.1. Licensee is obliged to comply with all applicable laws, secondary legislation, technical regulations, rules, standards and rules and regulations of FERC and SERC, as amended from time to time, as the conditions of this license, consistent with EU Directives and international agreements, accepted by BIH. 4.2. Licensee is obliged to apply the FERC tariff order applicable to Licensee. 4.2. Public service 4.2.1.The Licensee is obliged to perform the distribution of electricity for non-eligible (tariff) customers as the public service, pursuant to applicable laws, secondary legislation, regulations and standards of FERC, and consistent with EU Directives and international agreements accepted by BIH. 4.2.2.The Licensee is obligated to cooperate with Generation License and Tier 1 Supply License holders in negotiating the contracts required to ensure a stable public service supply. 4.2.3. FERC may adjust Licensee’s Public Service obligations during the license term. 4.3. Distribution Network Access 4.3.1. The Licensee shall inside its company organize Distribution Operator the task of which will be to control the power distribution network. Activities on establishment of Distribution Operator the Licensee shall finalize not later than 30.09.2006. 4.3.2. The Licensee shall ensure access and connection to the distribution network to all non-eligible (tariff) customers in a non-discriminatory manner and consistent with controlling FERC laws and rules, if the technical and energy criteria for connection set forth in the Grid Code, Rule on Connections and Cost Schedules that should be developed by Licensee in accordance with clause 3.3. 4.3.3. The Licensee shall enable the connecting to distribution network to all generators and eligible customers in non-discriminatory manner, consistent with controlling FERC laws and rules, if the technical and energy criteria for connection set forth in the Grid Code, Rule on Connections and Cost Schedules that should be developed by Licensee in accordance with clause 3.3. 4.3.4. Licensee shall develop procedures for approval of the access and connection to the Distribution Network for FERC approval, consistent with the requirements of Art. 4.10 of this License. License Registry Number 06-03-516-05/05 Page 3 of 12 Operation License- Power Distribution for Elektroprivreda HZHB d.d. Mostar 4.4. Quality of Electricity 4.4.1. The Licensee shall take all necessary measures that the electricity distributed to customers is in compliance with the quality requirements defined in the regulations on electricity supply, i.e. General Conditions for Supply and Distribution Grid Code. 4.4.2. Licensee shall perform his activities in a manner consistent with the state of the art domestic and international practice, related to quality and costs of power distribution gradually approaching to the least cost principles. 4.4.3. The Licensee is obliged to increase the safety, reliability and quality of supplied electricity with adequate investments into network and proper operation and maintenanceof distribution system. 4.5. Points and voltage levels of electricity acceptance 4.5.1. The Licensee is accepting electricity regularly in substations 110/X kV or on the outlet of the power plants on voltage levels 35 kV and 10(20) kV. The acceptance of electricity from small power plants may be done also on low voltage level of 0,4 kV 4.5.2. Exceptionally, in the areas where, because of configuration of the terrain and existing middle-voltage network (35, 20, 10 kV), is necessary to accept the electricity also on the middle-voltage level and low-voltage level from the neighboring distributions. 4.5.3.On the all electricity acceptance points Licensee is obliged to provide the respective metering of electricity, i.e. to use the metering devices of the generation and/or transmission and/or neighbouring distribution for the purpose of registering accpeted electricity if it the accuracy type and class thereof is satisfactory. 4.6. Metering devices on the points of delivery and acceptance 4.6.1. The Licensee is obliged to have metering devices on the points of delivery/acceptance of electricity in accordance with General Condistions for Electricity Supply. 4.6.2. Type and class of metering devices on the points are defined in General Conditions of Supply. The devices shall be accurate, properly calibrated and sealed, and fulfill specifications mentioned in the General Conditions of the Supply. 4.6.3. In the event that Licensee’s metering devices do not comply with the requirements of the General Conditions of the Supply, Licensee shall submit to FERC a proposed action plan to address such deficits not later than 31.05.2006. 4.6.4. The Licensee shall submit to FERC the review of metering points on places of electricity acceptance/delivery from Transco, power generators and neighboring power companies. 4.6.5. In the event that Licensee on certain points accepts the electricity from the neighboring country, it shall specially mark those points and explain the necessity fro acceptance of electricity from neighboring countries on distribution voltage levels. License Registry Number 06-03-516-05/05 Page 4 of 12 Operation License- Power Distribution for Elektroprivreda HZHB d.d. Mostar 4.6.6. During the term of this initial license Metering Unit may operate also in the scope of Supply Division, to enable performance of planned activities on elimination of commercial electricity losses. 4.6.7. After the expiration of deadline of 18 months, in the period of consideration of the application fro permanent license for distribution activity, FERC will consider if the conditions are fulfilled to return the Measurement Unit in the scope of Distribution activity. 4.7. Locations, metering points and voltage levels of delivery of electricity 4.7.1. The Licensee delivers the electricity to the supply service providers, i.e. in the initial phase to the customers, on the metering points that are normally settled on the border of fixed assets distribution-customer. 4.7.2. Voltage levels of electricity delivery are 35 kV, 10(20) kV and 0, 4 kV. The voltage level on which the customer will accept the electricity will be determined in the electric power permit. 4.8. Power balance by voltage levels The Licensee is obliged to submit to FERC any updated data on electrcity consumption by voltage levels with realized total consumption in the previous year each year, not later than January 31 of the current year in a format prescribed in the Rules on Tariff Methodology and Tariff Proceedings.
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