Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina - FERK

Kneza Domagoja 12 A, 88000 Mostar Phone +387 36 44 99 00 +387 36 44 99 01 Fax +387 36 33 35 07 +387 36 33 35 08 www.ferk.ba

FERK ACTIVITY REPORT FOR 2019

June, 2020.

Contents

Abbreviations ______4 INTRODUCTION ______5 Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina ___ 5 FERK Jurisdictions ______5 FERK Organisational Scheme ______6 FERK Commissioners ______6 Organisational Units of FERK ______6 FERK's Location ______7 Change of Address of FERK Office ______7 Information on Activities of Implementing Decision on Approval of FERK's Request for Construction of Office Space ______7 Legal Framework of Regulating Power Sector and Power Activities ______8 FERK Finances ______8 Internal and External Communication ______9 FERK's Information-Communication System ______9 Public Relations ______10 FERK Website and and Online Communication ______11 FERK's Annual Report ______12 PART ONE – FERK'S ACTIVITY IN 2019 ______13 Regulations within the jurisdiction of FERK adopted in 2019 ______13 Decision on approval of the Plan for Development and Construction of the Distribution Network for 2019 JP Elektroprivreda BiH d.d. - Sarajevo ______14 Decision on approval of the Plan for Development and Construction of the Distribution Network for 2019 to JP "Elektroprivreda Hrvatske zajednice Herceg Bosne" d.d. Mostar ______14 Decision on Amendments to the Procedural Rules of the Energy Regulatory Commission in the Federation of Bosnia and Herzegovina ______15 Decision on amendments to the General Conditions for Electricity Supply ______16 Rulebook on amendments to the Rulebook on the methodology for calculating connection fees and defining terms and conditions for connection to the distribution network ______16 Rulebook on Amendments to the Rulebook on the supply of Eligible Customers Supply and the Procedure for Supplier Switching ______17 Rulebook on Amendments to the Rulebook on Methodology and Manner of Calculating Regulatory Fees for Licensees ______18 Rulebook on Amendments to the Rulebook on Methodology and Manner of Calculating Regulatory Fees for Licensees – consolidated text ______19 Decision on the adoption of the Annual Monitoring Plan for 2020 ______19 Decision on determining the percentage of the obligatory share of electricity generated from renewable energy sources for 2020 ______20 Decision on determining the percentage for the calculation of the variable part of the regulatory fee for power entities for 2019 ______20 Decision on temporary regulatory fee for 2020 ______21 Public/universal service providers and service of supplier of last resort in the Federation of Bosnia and Herzegovina ______21 Decision on giving consent to EP HZ HB on the proposal of the price of the public supplier service for the provision of universal service ______22 List of documents published in Official Gazette FBiH ______24 Court decisions - lawsuits ______26 Licensing ______27 Licenses issued for performing electric power activities in 2019 ______27 Licenses issued for performing energy activities in the oil sector in 2019 ______29 Revocation of Licenses ______32 Revocation of - licenses for performing power activities in power sector ______32 Revocation of Licenses for performing energy activities from the oil sector ______33 Monitoring the execution of terms and conditions from issued licenses ______33 Monitoring of licensees for performance of power activities ______34 Monitoring of licensees for performing energy activities in oil sector ______34 Customer Protection ______37 International Membership and Projects ______39 FERK's Budget for 2019 ______44 FERK's Revenues in 2019 ______46 Expenditures in 2019 ______47 PART TWO – ENERGY SECTORS in the Federation of Bosnia and Herzegovina under FERK's jurisdiction ______49 POWER SECTOR IN THE FEDERATION OF BOSNIA AND HERZEGOVINA ______49 Power Generation ______49 Power Balance and Realization in EP BiH ______50 Power Balance and Realization in EPHZHB ______52 Independent Power Producers – Industrial Power Plants ______54 Eligible Electricity Producers ______55 Realization of Power Balance in the Federation of BiH ______63 Power Distribution ______65 Parameters of quality of electricity supply ______69 Power Supply – I Tier License ______71 Public supply in the scope of universal service ______72 Power supply of customers from pubic supplier on market principles ______72 Power Supply – II Tier License ______75 Information on Electricity Prices ______78 Information on number of customers connected to distribution networks of EP HZ HB and EP BiH ______83 Electricity Market in the Federation of BiH______84 OIL SECTOR ______87 Wholesale of Oil Products except LPG ______87 LPG Trading ______88 Storage of Oil Products ______89 Transport of Oil Products ______90 Photo Album ______93

Figures

Figure 1. User interface of part for management of DMS ______10 Figure 2. Layout of initial element of the official website ______11 Figure 3. Delivery of electricity surplus from independent producers in period 2015-2019 ____ 54 Figure 4. Structure of electricity consumption of customers on the distribution network of EP BiH for 2019 (GWh) ______67 Figure 5. Chart of electricity supply (GWh) to customers on the distribution network in EP BiH by months in 2019 ______67 Figure 6. Electricity consumption structure ______68 Figure 7. Chart of electricity supply (GWh) to customers on the distribution network in EP HZ HB by months in 2019 ______68 Figure 8. Structure of electricity consumption of customers on the distribution network in the Federation of BiH for 2019 (GWh) ______68 Figure 9. Index of electricity supply quality SAIDI for two public power utilities in the period 2015 -2019 ______70 Figure 10. Index of electricity supply quality SAIFI for two public power utilities in the period 2015 – 2019 ______70 Figure 11. Collective structure of electricity consumption of customers supplied on market conditions in 2019 (%) ______73 Figure 12. Structure of electricity consumption of customers supplied under market conditions in 2019 by EP BiH (left) and EP HZ HB (right) ______73 Figure 13. Overview of purchases and sales on the internal market of BiH in 2019 ______76 Figure 14. Review of electricity imports and exports in 2019 ______76 Figure 15. Planned/realized average price for 2019 EP BiH for categories and groups of consumption that have the possibility of supply within the universal service ______80 Figure 16. Planned/realized average price for 2019 EP HZ HB for categories and groups of consumption that have the possibility of supply within the universal service ______80 Figure 17. Fluctuation of average realized prices for categories of customers supplied within the universal service from 2017 to 2019 for EP HZ HB and EP BiH ______81 Figure 18. The share of network fee in the total planned average price of electricity by categories and groups of consumption that have the possibility of supply within the universal service for 2019 in EP BiH ______81 Figure 19. The share of network charges in the total planned average price of electricity by categories and groups of consumption that have the possibility of supply within the universal service for 2019 in EP HZ HB ______82 Figure 20. Overview of realized average prices in the first half of 2019 according to Eurostat household (annual consumption 2,500 to 5,000 kWh) ______82 Figure 21. Average prices in the first half of 2019 according to Eurostat industry (annual consumption 500 to 2,000 MWh). ______83 Figure 22. Share of individual suppliers in the supply of end customers with electricity in the Federation of BiH in 2019 (MWh) ______85

Tables

Table 1. Structure and number of acts in 2019 ...... 13 Table 2. Percentage of obligatory share of electricity in the last four years ...... 20 Table 3. Prices of service of public supplier EP HZ HB ...... 23 Table 4. List of documents published in Official Gazette FBiH in 2019 ...... 26 Table 5. Review of issued licenses in the reporting period ...... 28 Table 6. . Number of processed applications in 2019 ...... 29 Table 7. Number of valid licenses for performing power activities at 31 December 2019 ...... 29

Table 8. Overview of constructed plants using RES (RES and CoGen plants) ...... 29 Table 9. Overview of issued licenses in the reporting period ...... 30 Table 10. Number of issued licenses in oil sector in 2019 ...... 30 Table 11. Number of amended licenses in oil sector in 2019 ...... 30 Table 12. Number of processed applications in 2019 ...... 31 Table 13. Number of valid licenses for performance of energy activities on 31.12.2019 ...... 31 Table 14. Overview of revoked licenses in power sector ...... 33 Table 15. Overview of revoked licenses in oil sector ...... 33 Table 16. Performed monitoring of licensees for performing power activities in 2019 ...... 34 Table 17. Performed monitoring of licensees for performing energy activities in oil sector ...... 36 Table 18. Performed check-ups for data of licensee for performance of energy activities from oil sector ...... 36 Table 19. Type and number of issues received in 2019 ...... 37 Table 20. Statistical overview by types of claims and complaints of customers in 2019 ...... 38 Table 21. Budget Plan - Revenues for 2019 ...... 44 Table 22. Budget Plan – Expenditures for 2019 ...... 44 Table 23. Realised revenues and expenditures in relation to plan for 2019 ...... 45 Table 24. Type and structure of FERK revenues ...... 46 Table 25. Types of Revenues in 2019 ...... 47 Table 26. Types of Expenditures in 2019 ...... 47 Table 27. Overview of installed generation capacities by generation facilities for EPBiH ...... 49 Table 28. Overview of installed capacities (MW) in generation facilities for EPHZHB ...... 50 Table 29. Planned and realized generation of electricity in 2019 and realization of generation for 2018 in EP BiH ...... 51 Table 30. Overview of realised generation of electricity in period 2015-2019 in EPBIH...... 52 Table 31. Realization of generation of electricity in 2018 and plan and realization in 2019 in EP HZ HB ...... 53 Table 32. Overview of realised generation of electricity in period 2015-2019 in EP HZ HB ...... 53 Table 33. Realized electricity delivery in the Federation BIH from independent producers – industrial power plants for period 2015-2019 ...... 54 Table 34. List of electricity producers that acquired eligible producer’s status by FERK’s decision up to 31 December 2020 ...... 61 Table 35. Overview of constructed plants depending on technology type in the Federation of BiH ...... 62 Table 36. Overview of power generation from RES and CoGen plants depending on technology type in the Federation BiH for period 2015-2019 ...... 62 Table 37. Overview of electricity generation in the Federation of BiH from the RES and CoGen plants in the period from 2015 to 2019 ...... 63 Table 38. Realized electricity generation in the Federation of BiH in 2019 ...... 63 Table 39. Review of realized electricity generation in the period 2015-2019 in the Federation of BiH ...... 64 Table 40. Data on power facilities (substations and distribution network) for EP BiH for the period 2015-2019 ...... 65 Table 41. Data on power facilities (substations and distribution network) for EP HZ HB for the period 2015-2019 ...... 66

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Table 42. Data on power facilities (substations and distribution network) for the Federation of BiH for the period 2015-2019 ...... 66 Table 43. Data on the number of customers and consumption in 2019 by consumption categories for EP BiH ...... 67 Table 44. Data on the number of customers and consumption in 2019 by consumption categories for EP HZ HB ...... 68 Table 45. Data on the number of customers and consumption in 2019 by categories of consumption for the territory of the Federation of BiH on the distribution network ...... 68 Table 46. Data on electricity losses on the distribution network of EP BiH ...... 69 Table 47. Data on electricity losses on the distribution network of EP HZ HB ...... 69 Table 48 Data on electricity losses in distribution network in the Federation of BiH ...... 69 Table 49. Review of the structure and number of customers within the universal service in December 2019 ...... 72 Table 50. Data on universal service supply in 2019 (MWh) ...... 72 Table 51. Comparative (EP BiH - EP HZ HB) overview of customer consumption by market conditions and collectively in 2019 in MWh ...... 73 Table 52. Summary overview of electricity supply to customers in the system of universal service and customers under market conditions supplied by the licensees for I tier power supply in the Federation of BiH, in 2019 ...... 74 Table 53. Power Supply Licenses – II Tier issued by FERK ...... 75 Table 54. Review of electricity trade in 2019 ...... 77 Table 55. Review of the prices of the public service provider for the provision of universal service in 2019 for EP HZ HB ...... 78 Table 56. Overview of the prices of the public service provider for the provision of universal service in 2019 for EP BiH ...... 79 Table 57. Number of customers in 2019 by months for EP HZ HB ...... 84 Table 58. Number of customers in 2019 by months for EP BiH ...... 84 Table 59. Total consumption of electricity customers by voltage levels and by individual suppliers who supplied electricity to customers in 2019...... 86 Table 60. Total number of customers in the Federation of BiH by individual suppliers who supplied customers with electricity in December 2019 ...... 86 Table 61. Data on licensees for wholesale of oil products except LPG on 31.12.2019 ...... 88 Table 62. Data on Licensees for LPG trading on 31.12.2019...... 89 Table 63. Data on licensees for storage of oil products other than LPG as of 31.12.2019 ...... 90 Table 64. Data on licensees for the road transport of oil products on 31.12.2019 ...... 92

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Abbreviations

SERC – State Electricity Regulatory Commission

FERK- Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina

EP HZ HB – Javno poduzeće „Elektroprivreda Hrvatske zajednice Herceg Bosne“ dioničko društvo Mostar

EP BiH – Javno preduzeće Elektroprivreda Bosne i Hercegovine d.d. - Sarajevo

LPG - Liquefied petroleum gas

DSO – Distribution System Operator

General Conditions – General Conditions for Electricity Supply

RERS – Regulatory Commission for Energy in Republika Srpska

Operator OIEiEK – Operator for Renewable Energy Sources and Cogeneration

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INTRODUCTION

Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina (hereinafter: FERK) is established with Law on Electricity (Official Gazette of FBiH, 41/02, 24/05, 38/05 and 83/11) as Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina with aim to prevent monopoly in electricity activities and provide transparent and non-discriminatory position of all participants in the electricity market in the Federation of Bosnia and Herzegovina. FERK has status of legal person. It has been established as specialised, autonomous, independent and non-profit organisation in the Federation of Bosnia and Herzegovina. It is functionally independent from any political entity, governmental body or any other public or private body in the performance of its daily duties. Regarding the fact that EU Third Energy Package stipulates correlation of regulatory independence and reform implementation and introduces improved jurisdictions and strengthens regulatory independence, especially in market monitoring and sanctions of non-market actions, FERK's way of business is harmonised with Guidelines of Energy Community Secretariat on Regulatory Independence from January 2015, as much as it is possible regarding legislation. With Law on Electricity in the Federation of Bosnia and Herzegovina (Official Gazette FBiH, 66/13 94/15 and 54/19) FERK's name has been changed into Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina. This law, with the aim to set conditions for development and regulation of electricity market has amended provisions related to FERK's jurisdictions. They have been extended also with with provisions of Law on Usage of Renewable Sources and Efficient Cogeneration (Official Gazette FBiH, 70/13 and 5/14) and Law on Oil Products in the Federation of Bosnia and Herzegovina (Official Gazette FBiH, 52/14).

FERK Jurisdictions FERK's jurisdictions prescribed within the Law on Electricity in the Federation of Bosnia and Herzegovina, Law on Usage of Renewable Sources and Efficient Cogeneration and Law on Oil Products in the Federation of Bosnia and Herzegovina, are as follows: monitoring and regulation of relations between generation, distribution, supply and electricity customers, including electricity traders; monitoring of electricity market; adoption of methodology and criteria for determination of prices of public service provider and giving consent on prices for services of public service provider after full market opening; adoption of methodology and determination of tariff rates, terms and conditions for using of distribution system; adoption of methodology for determination of distribution network connection fees; issuance, renewal, transfer and revocation of licenses for generation, distribution, supply, electricity trade and operator for RES and CoGen; adoption of General Conditions for Electricity Supply and grid codes; adoption of methodology for determination of referent electricity price and based on that determination of feed-in prices for different technologies that privileged producers use to generate electricity as well as criteria for their application and based on it preparing calculation for feed-in electricity purchase prices; adoption of rulebook on obtaining eligible producers status and determination of status of eligible

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power producers; adoption of Rulebook on obligatory share and purchase of electricity generated in RES and CoGen; adoption of Rulebook on RES & CoGen micro-plants that contains shortened procedures defining actions in construction, conditions for connection on distribution network, manner of metering and billing of generated electricity, regulation and monitoring of operation of Operator for RES and CoGen; regulation of energy activities; production of oil products, wholesale of oil products except LPG, road and rail transport of oil products; storage of oil products expect LPG and LPG Trading; monitoring and regulation of relations between importers, wholesale traders, retail traders, transporters and customers of oil products in accordance with the law and FERK's rules and regulations; issuance or revocation of licenses for performance of energy activities as well as keeping register thereof; providing non-discrimination, efficient competition and efficient functioning of oil product market, taking special attention to safety of supply with oil products.

FERK Organisational Scheme Statute of Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina, on which Parliament of Federation BiH has given the consent (Official Gazette FBiH, 24/14 and 91/15) has prescribed, amongst other, jurisdictions and obligations, organisation and managing, representation, authorities and manner od decision-making, as well as other issues important for FERK's business. Principles of transparency, non-discrimination and publicity of FERK's work in performing its lawful authorities have been stated in FERK Statute.

FERK Commissioners FERK has three commissioners that have been chosen by public job advertisement and are nominated in accordance with provisions of Article 24 of Law on Electricity in the Federation of Bosnia and Herzegovina. Parliament of FBiH, on proposal of FBiH Government, with previous consents of President and Vice Presidents of the Federation BiH, nominates FERK Commissioners. Office term of FERK Commissioner lasts five years and has started on 20 February 2017 for the nominated in reporting period. Function of FERK President is rotated every year. In reporting period FERK Commissioners are: • Sanela Pokrajčić – from Croatian People, • Mile Srdanović – from Serbian People, • Jasmin Bešo – from Bosnian People.

In 2019 FERK President was Sanela Pokrajčić until 7 October after which this function is taken by Mile Srdanović for one year term.

Organisational Units of FERK FERK's jurisdiction activities are performed in the scope of organisational units as follows: • Legal Department, • Technical and Licensing Department, • Tariffs and Market Department, • Financial Department and • Common Affairs Department. In order to perform its work efficiently, FERK, if necessary, organizes work in teams in which staff from different departments are appointed, depending on the nature and requirements of individual work tasks. Although according to the organisational scheme of FERK, 42 employees is foreseen number, from January to April 2019, FERK employed 30 people, and after the job announcement process, from May 2019, FERK employed 38 people. Among 38 employees, seven are masters of science, 27 with a university degree, two with a college degree and two with a high school diploma. Employment rights and obligations are regulated by general labour regulations, FERK internal acts, employment contracts, and the Code of Ethics which regulates the rules and principles of conduct

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of FERK commissioners and employees, both in relation to the prescribed competencies and their attitude towards citizens, all with the aim of conscientiously performing their functions and maintaining the integrity and dignity of FERK.

FERK's Location

Change of Address of FERK Office Based on a public invitation and collection of written offers, FERK conducted the procedure of leasing business premises, and made a decision that from 1 January, 2019 leases office space at the address Kneza Domagoja 12 A in Mostar. The lease agreement is concluded for a definite period of time, i.e. for one year. After the expiration of this contract, a new fixed-term contract was concluded, for two years starting from 1 January 2020.

Information on Activities of Implementing Decision on Approval of FERK's Request for Construction of Office Space On 17 December 2015, the Parliament of the Federation of Bosnia and Herzegovina passed the Decision on approving FERK's request for construction of business premises in Mostar (Official Gazette FBiH, 102/15). After the decision was made, on 26 February 2016. FERK published a public call for legal and natural persons to submit information on construction land and its price per m². FERK also directly sent a public invitation to: the City of Mostar, the Government of the Herzegovina-Neretva Canton and the Government of the Federation of Bosnia and Herzegovina. The City of Mostar, i.e. the Department of Finance and Real Estate of the City of Mostar, submitted on 19 December 2016 response to FERK informing that the City of Mostar has no land to offer, because it does not own any real estate in its entirety. On 6 May 2017, the Office of the Government of Herzegovina-Neretva Canton submitted information that this canton is not registered as the owner, i.e. user of real estate in cadastral municipalities maintained by the Land Registry Office of the Municipal Court in Mostar. The Government of the Federation of BiH, on the subject matter, commented on 14 April 2017 by a letter from the Service for Joint Affairs of Bodies and Bodies of the Federation of BiH, and submitted information that the Government of the Federation of BiH registered real estate owned by 1/1 land of 1436 m 2 and land of 1639 m 2. The Government of the Federation of BiH, Service for Common Affairs FBIH Bodies on 21 May 2018 submitted a letter informing FERK that it would be informed in a timely manner about the position regarding the subject land. After addressing the Government of the Federation of BiH again on 25 April 2019, FERK received information on 10 May, 2019 that during the determination of the proposed agenda of the 178 th session of the Government of the Federation of BiH, FERK's act regarding construction land which is owned by the Federation of BiH, was discussed and the position was taken to offer FERK the purchase of part of the land not needed by the Federation of BiH. In order to obtain all the necessary information regarding the subject land, a land registry excerpt was obtained. Upon inspection of the Land Registry excerpt of the subject land, it was noticed that the land parcel was sealed, since there is a request of a private person regarding it, which has not been resolved. Considering the new facts related to the subject land, on 10 October, 2019 FERK has informed the Federal Ministry of Energy, Mining and Industry that it is not able to enter into the process of purchasing that land and if in the next period the legal obstacles for this property are removed, FERK requested to be notified, in order to reach cooperation and agreement.

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Legal Framework of Regulating Power Sector and Power Activities In 2019, FERK performed activities within its jurisdiction on the basis of the provisions of the aforementioned laws, and accompanying secondary legislation: • Statute of FERK (Official Gazette FBiH, 24/14 and 91/15); • FERK Procedural Rules (Official Gazette FBiH, 29/14, 31/16 and 84/19); • Rulebook on Protection of Confidential Information (Official Gazette FBiH, 70/06 and 71/14); • Code of Ethics No. 05-08-725-43/15 dated 23 December 2015; • FERK Rules on hearing Procedures and Resolving Requests and Complaints (Official Gazette FBiH, 57/12, 71/14 and 31/16); • Arbitration Rules (Official Gazette FBiH, 74/05, 71/14 and 31/16); • Rulebook on Licensing (Official Gazette FBiH, 2/17); • Rulebook on Obtaining Eligible Producer's Status (Official Gazette FBiH, 53/14); • Rulebook on Licensing Energy Activities from Oil Sector (Official Gazette FBiH, 15/16); • Rulebook on Monitoring (Official Gazette FBiH, 18/18); • General Conditions for Electricity Supply (Official Gazette FBiH, 89/14, 7/18 and 84/19); • Rulebook on Methodology for Calculation of Connection Charges and Defining Terms and Conditions for Connection to Distribution Network (Official Gazette FBiH, 89/14 and 84/19); • Decision on Regulatory Chart of Accounts (Official Gazette FBiH, 31/11); • Rulebook on Tariff Methodology and Tariff Proceedings (Official Gazette FBiH, 37/13); • Rulebook on Eligible Customers Supply and the Procedure for Supplier Switching (Official Gazette FBiH, 89/14 and 84/19); • Rulebook for Design and Application of Load Curve (Official Gazette FBiH, 77/14); • Rulebook on Methodology to Determine Referent Electricity Price (Official Gazette FBiH, 50/14 and 100/14); • Rulebook on Methodology to Determine Feed-in Prices for Electricity Purchased from Plants Using RES and Efficient CoGen (Official Gazette FBiH, 50/14); • Rulebook on Obligatory Share and Purchase of Electricity Generated in RES (Official Gazette FBiH, 99/16); • Rulebook for Renewable Energy Sources Micro Plants (Official Gazette FBiH, 50/14); • Rulebook on Reporting (Official Gazette FBiH, 77/10 and 87/11); • Rulebook on Reporting for II Tier Suppliers, IPPs and Operator for RES and CoGen (Official Gazette FBiH, 27/16) • FERK Budget for 2019 (Official Gazette FBiH, 99/19); • Decision on Amounts of One-off Fees for Processing Applications – consolidated version (Official Gazette FBiH, 5/17); • Rulebook on Methodology and Calculation of Regulatory Fees for Licensees – consolidated version (Official Gazette FBiH, 94/19) • Decision on Determining Percentage for Calculation of Variable Part of Regulatory Fees in 2019 (Official Gazette FBiH, 98/19) • Decision on Determination of Base Year in Starting Tariff Proceedings (Official Gazette FBiH, 79/12). FERK Finances FERK is financed from revenues from regulatory and one-off fees charged to licensees engaged in the following activities: generation, distribution, supply and trade of electricity and revenues from license fees issued to entities for performing activities in the oil sector, including costs based on arbitration, all on the basis of Article 31 of the Law on Electricity in the Federation of Bosnia and Herzegovina and Article 17 of the Law on Oil Products in the Federation of Bosnia and Herzegovina. FERK's budget for 2019 was adopted by the Parliament of the Federation of BiH in the amount of BAM 3,787,266.00. FERK's financial statement is explained in detail in the first part of this report.

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Internal and External Communication

FERK's Information-Communication System In 2019, the Information-Communication (ICT) System of FERK remained identical to the year before, all because FERK was not able to conduct public procurement procedures. Compared to the previous year, the remaining workstations have SSDs installed, which started in 2019, and have been performed on ¾ workstations, so now the complete system is finished, and the rest of the workstations now have a faster response, and the work itself is more comfortable, more productive, and has faster access to software packages, including those hosted on local servers. The role of the ICT business function is to determine the needs of FERK and to define strategies, solutions and initiatives related to structure, technologies, standards and rules. ICT develops, implements and manages applications and central and distributed technology infrastructure in accordance with the defined budget and objectives. Furthermore, the ICT business function ensures the implementation and management of information and communication technology security measures, and oversees the management of related incidents (including ICT/cyber risks and security management) in accordance with applicable laws, FERK regulations and internal procedures. Due to the transition to the new office space, FERK conceived the local network in a slightly different way, which results in less problems in its work compared to past. All employees have access to the software package for document processing (Process Management System), and also to the part for process management even when they are outside the FERK local network. This further improves the environment for performing daily tasks. Access is also possible from mobile devices.

An integral part of the mentioned system is the management of files that are not in the processing (Document Management System). In this way, documents (files of various extensions) can be shared with other users by granting privileges and rights, what can be done by each employee in its part. In this way, communication can be achieved by sharing documents that cannot be sent by e-mail or would be inappropriate to send, with employees who are currently outside the office and cannot access the local file server, because access from outside is prohibited due to compliance with information security procedures.

The following figure shows the user interface of part for management of DMS:

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Figure 1. User interface of part for management of DMS

FERK's ICT system always has the latest version of protection programs, both, antivirus and web traffic filters, as well as Firewall. In order to keep the server capacities unburdened, the Firewall solution is in the form of special hardware devices. The number of Wi-Fi points has remained the same, with each workstation, each docking station connected to the system by wired connection, so any problem with the Wi-Fi network is not felt in operation, and overall ICT is therefore safer. In addition, access to the part of the network related to guests and devices that do not have the authority to access the network is restricted, by determining the period when it is in operation, on an automatic basis. In its work, FERK uses exclusively legal software, but also free software wherever possible and only after inspecting it, as well as free operating systems for a few devices and workstations (Linux).

Public Relations The opening of the electricity market has brought some changes. For this reason, regulatory commissions and other regulated participants in the energy sector, which as unbiased organizations have an obligation to regulate market relations on the one hand and to take care of customers on the other, need to adopt new methods of communication with the public and media to gain a positive opinion of the media and the public about their daily work. Among the main functions of public relations in FERK, the function of media relations stands out, which is emphasized in the presentation of news, transparent adoption of new secondary legislation acts and decisions. The information to the general public was especially emphasized after the adoption of important FERK decisions, and there were also press releases after the regular sessions. The communication guarantees objectivity and relevance in relation to the source of information. FERK commissioners and authorized persons are always available to the public, especially to the media. Intensive communication with customers, investors and other market participants, as well as answering various questions within the jurisdiction of FERK, providing general information related to the legal regulations regarding the application and issuance of licenses is part of FERK's daily work.

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FERK Website and and Online Communication FERK's website (www.ferk.ba) can be considered part of the ICT system. This content is not physically located in the premises of FERK, because the conditions for that have not been met (internet connection, congestion of the part related to uploading). The cheapest and easiest solution for hosting a website is a special external provider of hosting services. Such a solution is both more reliable and cheaper. The website is completely created, maintained, designed and updated by IT person from FERK. All decisions, rulings, acts and other documents are posted in PDF format on the website, and the time of publication is measured in minutes after they become valid. Layout of the initial element of the official website, where the visitor chooses one of the official languages of Bosnia and Herzegovina or English:

Figure 2. Layout of initial element of the official website

The process of analysis of FERK's website in terms of accessibility to end users was performed, followed by analysis of used and new Internet tools and technologies that will contribute to better work for both employees and end users. We are constantly working on optimization and easier finding of the necessary information. The website is available in all official languages in Bosnia and Herzegovina, and the English version is informative in terms of the basic information and recent events. The website adapts to the diagonal of the screen on which it is displayed, so it is, so-called, responsive website. With a proper work schedule, and cooperation within FERK, updating the website happens, if necessary, a few minutes after the release of the document or information to be published, all depending on the priorities. The website was available 99.9% of the time in 2019. In 2019, the FERK website was visited by 59,684 unique visitors, and the number of pages visited was 2,014,000. Of that number, most visits are from Bosnia and Herzegovina, followed by visitors from the United States. As of the second half of 2019, the websites have an integrated SSL certificate, which improves security, but also improves the ranking of the website on the relevant search algorithms, when the information is related to the scope of FERK's jurisdiction. The proposal to have FERK's profile on the social network LinkedIn is being considered, and in the future FERK will take into account the existence of other social networks, and consider its presence on them, taking care of preserving reputation that FERK has gained in the media and on the Internet.

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FERK's Annual Report Annual reporting to the Parliament of the Federation of BiH on our work is, in addition to the legal obligation, an important form of presentation. All FERK sectors are actively participating in the preparation of this document, each processing its own part. In addition to the full report being prepared for the Parliament of the Federation of BiH, summarised versions of the report are possible, depending on the need and purpose.

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PART ONE – FERK'S ACTIVITY IN 2019

Regulations within the jurisdiction of FERK adopted in 2019

During 2019, FERK held 19 internal meetings and 19 regular sessions. Internal meetings and regular sessions of FERK are held as needed, but at least once in 30 days. All regular sessions of FERK are opened to the public. Public notices on holding regular sessions are published on the bulletin board and the FERK's website. At regular sessions, FERK discusses issues within its jurisdiction determined by the Law on Electricity in the Federation of Bosnia and Herzegovina, the Law on Use of Renewable Energy Sources and Efficient Cogeneration and the Law on Oil Products in the Federation of Bosnia and Herzegovina. Also, the media regularly reported on FERK's actions and decisions. The following table shows the structure and number of acts adopted at internal meetings and regular sessions in 2019.

Internal meetings (19) Regular sessions (19) Type of the document No. Type of the document No. Minutes 19 Minutes 19 Decisions 162 Decisions 86 Decisions 166 Decisions 98 Rulebooks 6 Conclusions 3 Draft licenses 56 Rulebooks 5 Draft documents 8 Public notices 62 Public notices 20 Table 1. Structure and number of acts in 2019

Respecting the principle of publicity and transparency in work, in accordance with the Rulebook on Public Hearings and Resolution of Requests, Disputes and Complaints, FERK held a total of 62 general hearings in the past year (56 held in the licensing process and six in the process of adopting rules and regulations on: Draft Decision on Amendments to the General Conditions, Draft Rulebook on Amendments to the Rulebook on Methodology for Calculating Fees for Connection and Defining Terms and Conditions for Connection to the Distribution Network, Revised Draft Decision on Amendments to the General Conditions, Draft Rulebook on Amendments to the Rulebook on Eligible Customers Supply and Supplier Switching, the Draft Decision on Amendments to the Procedural Rules of the Energy Regulatory Commission in the Federation of Bosnia and Herzegovina and the Draft Rulebook on Amendments to the Rulebook on Methodology and Method of Calculating Regulatory Fees for Licensees).

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Decision on approval of the Plan for Development and Construction of the Distribution Network for 2019 JP Elektroprivreda BiH d.d. - Sarajevo Official Gazette FBiH, 30/19

Article 48, paragraph (4) of the Law on Electricity in the Federation of Bosnia and Herzegovina stipulates that FERK, at the proposal of the DSO, approves plans for the development and construction of the distribution network. Also, paragraph (5) of this Article stipulates that the DSO is obliged to submit to FERK short-term and long-term (innovated) plans for the development and construction of the distribution network within 30 days after their adoption by the company's competent bodies. On 28 February 2019, JP Elektroprivreda Bosne i Hercegovine d.d. - Sarajevo (hereinafter: EP BiH) has submitted to FERK the Plan for Construction and Reconstruction of the Distribution Network for 2019, as an integral part of the Business Plan of JP Elektroprivreda BiH d.d.-Sarajevo for the period 2019-2021. The Plan for Construction and Reconstruction of the Distribution Network for 2019 consists of: • Annex 1 - List of transferred projects, which includes power facilities whose construction/reconstruction has started, but has not been completed in the earlier planning periods, the reasons why the investments were not realized are explained, • Annex 2 - Lists of new projects, investment projects whose construction/reconstruction is planned in the current planning period are listed, • Annex 3 - Reason for investment for transferred projects with explanation or investment study for each electricity distribution area and • Annex 4 - Obtained construction permits for new facilities. On 4 April 2019, JP Elektroprivreda BiH d.d. - Sarajevo has supplemented and completed the request with clarifications on all additional issues. After a detailed analysis on 7th regular session held on April 26, 2019 FERK passed the Decision on approving the Plan for Construction and Reconstruction of the Distribution Network for 2019 of EP BiH.

Decision on approval of the Plan for Development and Construction of the Distribution Network for 2019 to JP "Elektroprivreda Hrvatske zajednice Herceg Bosne" d.d. Mostar Official Gazette FBiH, 52/19

Pursuant to Article 48, paragraphs (4) and (5) of the Law on Electricity in the Federation of Bosnia and Herzegovina, in order to implement the legal provisions, on 29 January 2019. FERK has sent to the JP "Elektroprivreda Hrvatske zajednice Herceg-Bosne" d.d. Mostar (hereinafter: EP HZ HB) request for information, which also reminded them of this legal obligation. Acting upon the stated request for information, on 13 February 2019, EP HZ HB has submitted to FERK the Business Plan of JP „Elektroprivreda HZ HB“ d.d. Mostar for the period 2019-2021 and on 5 February 2019, the Investment Plan of the organizational division Power Distribution for 2019, which is an integral part of the Three-Year Business Plan of EP HZ HB for the period 2019-2021. The realization of the rebalance of the investment plan for 2018 of Power Distribution was also submitted. EP HZ HB has completed the request on 12 June 2019. The Plan for the Construction and Reconstruction of the Distribution Network of EP HZ HB for 2019 contains a list of investments, analytically and synthetically developed by distribution areas, as well as the method of financing individual investments. The Power Distribution Investment Plan for 2019 is divided into the List of Transferred Investments and the List of Planned New Investments with six attachments, i.e. the list of investments by distribution areas (DP Working unit Jug Mostar, DP Working unit Jug Grude, DP Working unit Jug

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Livno, DP Centar, DP Sjever, DEE Directorate), as well as the method of financing these investments (own funds, credit funds, donations). Based on the conducted analysis, FERK considered it justified to approve the mentioned plan, and on its 11th regular session held on 12 July 2019 passed the Decision on approving the Plan for Construction and Reconstruction of the Distribution Network for 2019 of EP HZ HB.

Decision on Amendments to the Procedural Rules of the Energy Regulatory Commission in the Federation of Bosnia and Herzegovina Official Gazette FBIH, 84/19

Article 22, point 11) of the Law on Electricity in the Federation of Bosnia and Herzegovina stipulates that in performing its obligations and performing its functions under the law, FERK is shall issue implementing regulations for exercising the prescribed jurisdictions, while Article 32 of the same Law prescribes in detail the manner of FERK work, through sessions that are public, except when it comes to confidential information and business secrets, in accordance with FERK acts. In connection with the above, Article 20, paragraph (4) of the FERK Statute stipulates that FERK shall adopt Procedural Rules in order to regulate the basic procedures and procedures of FERK, and Article 23, paragraph (1) and paragraph (2) of the FERK Statute stipulates that FERK adopts general and individual acts necessary for its work, including the Rules of Procedure. The main reason for making the Decision on Amendments to the Procedural Rules of the Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina is FERK's obligation to constantly monitor the application of rules and regulations issued in accordance with its statutory jurisdictions and obligations and monitor compliance with applicable laws. Namely, Article 24, paragraph (6) of the Procedural Rules of FERK (Official Gazette FBiH, 29/14 and 31/16) stipulated that all sessions of FERK are to be electronically recorded, and that FERK may decide on recording of all or some internal meetings, and Article 26, paragraph (3) of the same Procedural Rules states that the minutes as well as recordings of sessions at which confidential information was discussed are considered confidential, not available to the public, while Article 9, paragraph (2) point g) of the Law on Personal Data Protection (Official Gazette BiH, 49/06, 76/11 and 89/11) stipulates that exceptional processing of special categories of personal data is allowed, if it is of special public interest or in other cases prescribed by law, and which must contain specific provisions on appropriate safeguards. In connection with the above, FERK sought the opinion of the Agency for Personal Data Protection in Bosnia and Herzegovina, which in its letter received on 3 June 2019 No. 05-01-606-01/19 stated that the document „Audio recording of the sessions of the Management Board" was published on the official website of the Agency, in the „Opinions“ section, which contained the answer to FERK's inquiry. Based on the review of this document, it can be concluded that the voice is biometric data, and if audio or audio recording of voice is performed at the FERK session, it also represents the processing of a special category of personal data, and these data can be processed only in accordance with law, for a specific purpose and to the extent necessary to fulfil the purpose. In this regard, the voice may be processed if it is of special public interest or in other cases prescribed by law, provided that the law must contain specific provisions on appropriate protection mechanisms. Considering the provisions of the Law on Personal Data Protection and the stated opinion of the Agency for Personal Data Protection in Bosnia and Herzegovina, i.e. considering that the law does not prescribe the right and obligation of FERK to record audio sessions, and how minutes are kept, which achieves the same purpose as audio recording, it was necessary to amend the Procedural Rules of the Regulatory Commission for Energy in the Federation of Bosnia and Herzegovina by deleting the provisions related to recording. Following the general hearing procedure and the report of the Presiding Officer on the held hearing, FERK adopted the Decision on Amendments to the Procedural Rules of the Regulatory

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Commission for Energy in the Federation of Bosnia and Herzegovina on 31 October 2019 at the 16th regular session.

Decision on amendments to the General Conditions for Electricity Supply Official Gazette FBiH, 84/19

Article 21 of the Law on Electricity in the Federation of Bosnia and Herzegovina prescribes FERK's jurisdictions, including the adoption of the General Conditions for Electricity Supply, while Article 22 of the same law stipulates, inter alia, that FERK enacts enforcement regulations to exercise its prescribed jurisdictions. Article 61 of the Law on Electricity in the Federation of Bosnia and Herzegovina prescribes the content of the General Conditions for Electricity Supply, and Article 62 of the same Law prescribes that the General Conditions for the territory of the Federation of BiH shall be adopted by FERK. The main reason for making the Decision on Amendments to the General Conditions for Electricity Supply are the results of continuous monitoring of the application of the General Conditions for Electricity Supply (Official Gazette FBiH, 89/14 and 7/18) considering FERK's obligation to analyse effects of their application, but also proposals and inquiries related to the application of certain provisions of the General Conditions for Electricity Supply submitted by the competent distribution system operators, suppliers and electricity customers. In connection with the above, it was determined that it is necessary to increase the efficiency in dealing with the change of ownership of facility for which the electricity permit was issued and simplify the procedure in these cases, taking into account the already prescribed deadlines for delimitation of ownership, adjust provisions related to right of customer connected to the low-voltage distribution network for the use of part or the total approved connection power at another location within the same transformer area and validity of previous electricity permit in a special zone, clarify provisions on joint consumption, simplify the issue of facility lease, clarify the construction of temporary connection and resolve billing of non-registered consumption. At the same time, the analysis of public comments, which referred to the signing of special contracts for the use of the distribution network and electricity supply contracts with the possibility for the end customer to receive a single bill, led to changes in the provisions related to equalizing contracts for all eligible customers, and at the same time to the need to regulate mutual relations between distribution system operators and electricity suppliers and delimitation of their jurisdictions, and FERK also took into account amendments to the Law on Amendments to the Law on Electricity in the Federation of Bosnia and Herzegovina (Official Gazette of the Federation of BiH, 54 / 19). FERK paid special attention to previous experiences and information gained in the exercise of its jurisdictions, all with regard to the real needs and trends in the electricity market, in order to have more accurately and easily application of certain provisions of the General Conditions for Electricity Supply by all participants in the energy sector. After the general hearing procedure, the report of the Presiding Officer on the hearing, and the detailed analysis of the received comments, FERK adopted the Decision on Amendments to the General Conditions for Electricity Supply on 31 October, 2019 at the 16th regular session.

Rulebook on amendments to the Rulebook on the methodology for calculating connection fees and defining terms and conditions for connection to the distribution network Official Gazette FBiH, 84/19

Article 21 of the Law on Electricity in the Federation of Bosnia and Herzegovina prescribes FERK's jurisdictions, including the adoption of a methodology for determining the fee, deadlines and conditions for connection to the distribution network. Article 83, paragraph (2) of the same Law prescribes that the manner of determining the connection fee is determined by the General

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Conditions for Electricity Supply and the Methodology for Calculating Fees and Defining Terms and Conditions for Connection to the Distribution Network issued by FERK, while paragraph (3) of the same article stipulates that the amount of connection fees according to the methodology referred to in paragraph (2) of that Article shall be determined by FERK. The main reason for adopting the Rulebook amending the Rulebook on the methodology for calculating connection fees and defining terms and conditions for connection to the distribution network are the results of continuous monitoring of the application of the Rulebook on methodology for calculating connection fees and defining terms and conditions for connection to the distribution network (Official Gazette FBiH, 89/14), based on the simultaneous correction of the relevant provisions of the General Conditions for Electricity Supply (Official Gazette FBiH, 89/14 and 7/18). The technical elements and financial effects of the realization of connections are analysed, especially related to the calculation of fees and the definition of terms and conditions for connection to the distribution network. It should enable the fulfilment of the goals set for FERK by the Law, and the creation of incentives for the operation of distribution system operators on the principles of non-discrimination and equality, all in terms of contractual regulation of relations between participants in the electricity market in the Federation of Bosnia and Herzegovina. The Rulebook on Amendments to the Rulebook on the Methodology for Calculating Connection Fees and Defining Terms and Conditions for Connection to the Distribution Network elaborates the right of a customer whose facility is connected to the low voltage distribution network to use part or total approved connection power at another location within the same transformer area 10 (20)/0.4 kV, the provisions on the fee and the manner of construction of the occasional connection are deleted, and the payment of the fee for the temporary connection is regulated in a different way, the provisions relating to connection costs in case of reconnection of the customer's facility to the distribution network, after a shutdown that lasted more than five years are more precisely defined. After the general hearing procedure, the report of Presiding Officer on the hearing, the analysis of the received comments from the public, and since the comments were not of such a nature as to require a substantial revision of the draft rulebook, FERK has, on 31 October 2019 at its 16th regular session, adopted the Rulebook amending the Rulebook on the methodology for calculating connection fees and defining the terms and conditions for connection to the distribution network.

Rulebook on Amendments to the Rulebook on the supply of Eligible Customers Supply and the Procedure for Supplier Switching Official Gazette FBiH, 84/19

Article 13 of the Law on Electricity in the Federation of Bosnia and Herzegovina, among other things, stipulates that the Rulebook on Supply of Eligible Customers is prescribed by FERK, and prescribes mandatory provisions that it should contain, while Articles 15 and 16 of the Law prescribe provisions related to the electricity market, as well as conducting market development in accordance with FERK acts. Article 57 of the Law on Electricity in the Federation of Bosnia and Herzegovina prescribes detailed provisions on the supply of eligible customers, as well as provisions related to the supply of electricity from the public supplier and the right to a supplier of last resort, while Article 59 of the Law stipulates that eligible customers have the right to freely choose the electricity supplier, and the same article prescribes the rights and obligations of the eligible customer, including signing of contracts in accordance with applicable laws and regulations. Article 23 of the Rulebook on Eligible Customers Supply and the Procedure for Supplier Switching stipulates, inter alia, that FERK monitors and analyses the effects of the application of this Rulebook in market conditions, and harmonizes its provisions with changed circumstances and the actual level of electricity market development and that amendments to this Rulebook shall be made in accordance with the same procedure as for its adoption.

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The main reason for adopting the Rulebook on Amendments to the Rulebook on Customers Supply and the Procedure for Supplier Switching are the result of continuous monitoring of the application of the Rulebook on Customers Supply and the Procedure for Supplier Switching (Official Gazette FBiH, 89/14) related to FERK's obligation to analyse the results of its previous application and the need to adjust certain provisions to developments and established market relations and practices in the energy sector, all with a goal of the smooth functioning of the electricity market, based on simultaneous correction of relevant provisions of the General Conditions for Electricity Supply (Official Gazette FBiH, 89/14 and 7/18) through the Decision on Amendments to the General Conditions for Electricity Supply. Based on the above, it was determined that it is necessary to amend certain provisions of the Rulebook related to signing of contracts for the use of the distribution network and electricity supply contracts and the method of payment of obligations under them, the provisions relating to the issuance of certificates of conformity and related provisions from the prescribed methodologies, but also the provisions related to pricing design in determining the price of the public supplier's service. After the general hearing procedure, the report of Presiding Officer on the hearing, the analysis of the received comments from the public, FERK adopted the Rulebook on Amendments to the Rulebook on the Eligible Customers Supply and the Procedure for Supplier Switching at the 16th Regular Session, held on 31 October 2019.

Rulebook on Amendments to the Rulebook on Methodology and Manner of Calculating Regulatory Fees for Licensees Official Gazette FBiH, 84/19

After the analysis of the application of the Rulebook on methodology and manner of calculation of regulatory fees for licensees (Official Gazette FBiH, 5/17, 59/17 and 49/18), the need for clearer prescribing of the time of application of the decision on percentage p (%) for calculation variable part of the regulatory fee has been determined. There is also a need for more detailed and clearer prescribing of the manner of FERK's actions and decisions regarding the recalculation of the amount of regulatory fees to the licensees for performing power activities and the Operator for RES and CoGen, whose licenses are revoked or who do not renew their licenses, and for those renewing the license in the current year, but between the period of validity of the previous license and the period of validity of the new/renewed license there is a period in which they did not have a license, as well as licensees from the oil sector, whose license is revoked. Also, it was necessary to prescribe the manner of FERK's actions and decisions regarding the recalculation of the amount of the regulatory fee to the licensees for performing power activities, whose license is revoked or who do not renew the license, in the period for which the amount of temporary regulatory fee is determined. It was also necessary to regulate the calculation of the regulatory fee, during the validity of the decision on temporary regulatory fee, when the licensees for performing power activities, who received the license in the current year, are revoked, as well as when the holders of licenses for performing power activities renew their license, but between the period of validity of the previous license and the period of validity of the new/renewed license, there is a period in which they did not have a license issued. Following the general hearing procedure and the report of the Presiding Officer on the hearing, FERK adopted the Rulebook on Amendments to the Rulebook on Methodology and Manner of Calculating Regulatory Fees for Licensees on 31 October, 2019 at the 16th regular session.

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Rulebook on Amendments to the Rulebook on Methodology and Manner of Calculating Regulatory Fees for Licensees – consolidated text Official Gazette FBiH, 94/19

The consolidated text of the Rulebook on Methodology and Manner of Calculation of Regulatory Fees for Licensees contains the provisions of: Rulebook on Methodology and Manner of Calculation of Regulatory Fees for Licensees (Official Gazette FBiH, 5/17), Rulebook on Amendments to the Rulebook on Methodology and Manner of Calculation Regulatory Fees for Licensees (Official Gazette FBiH, 59/17), the Rulebook on Amendments to the Rulebook on Methodology and Manner of Calculating Regulatory Fees for Licensees (Official Gazette FBiH, 49/18) and the Rulebook on Amendments to the Rulebook on Methodology and Manner of Calculation of Regulatory Fees for Licensees (Official Gazette FBIH, 84/19). On its 17th regular session held on 28 November 2019 FERK adopted the consolidated text of the Rulebook on the Methodology and Manner of Calculation of Regulatory Fees for Licensees.

Decision on the adoption of the Annual Monitoring Plan for 2020 Official Gazette FBiH, 94/19

Pursuant to Article 21, paragraph (1), point 1) of the Law on Electricity in the Federation of Bosnia and Herzegovina, FERK's competencies include supervision and regulation of relations between generation, distribution, supply and electricity customers, including electricity traders, in accordance with this Law and FERK implementing acts, Article 22 item 10) of this Law prescribes the obligation of FERK to monitor and supervise the execution of terms and conditions from issued licenses and Article 87 paragraph (3) of the same Law prescribes that FERK monitors and supervises execution of terms and conditions of issued licenses. Article 9, paragraph (6) of the Law on the Use of Renewable Energy Sources and Efficient Cogeneration stipulates that the operation and work of the Operator for RES and CoGen shall be regulated and supervised also FERK, within its competences, while Article 17, paragraph (1) point a) of the Law on Oil Products in the Federation of Bosnia and Herzegovina stipulates that FERK is also responsible for supervising and regulating relations between importers, wholesalers, retailers, transporters and buyers of oil products in accordance with this Law and FERK's implementing acts, and Article 26 paragraph (1) of the same law says that FERK supervises the performance of licensed energy activity. Pursuant Article 8, paragraph (1) of the Rulebook on Monitoring, it is prescribed that FERK adopts by 30 November each year, monitoring plan for the next year based on the number and type of issued licenses, fulfilment of reporting obligations from issued licenses and in accordance with FERK's reporting rules and regulations, chronology of licenses issuing, chronology of last performed monitoring, while paragraph (2) of the same of the article stipulates that the annual monitoring plan contains an overview of licensees by licensed activities that will be covered by regular monitoring in a certain calendar year, taking into account FERK's planned activities. Based on the above and the data collected by reviewing, analysing and verifying regular reports, notifications, documentation and data that licensees are obliged to submit to FERK in accordance with the terms of issued licenses and records of performed monitoring, the Monitoring Plan for 2020 was developed and adopted on 28 November 2019, on the 17th regular session of FERK.

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Decision on determining the percentage of the obligatory share of electricity generated from renewable energy sources for 2020 Official Gazette FBiH, 97/19

On its 17th regular session held on 13 December 2020, FERK has passed a Decision on determining the percentage of the obligatory share of electricity generated from renewable energy sources for 2020. The main reason for the Decision on determining the percentage of obligatory share of electricity generated from renewable energy sources for 2020 is the obligation prescribed by Article 21, paragraph (1) of the Law on Usage of Renewable Energy Sources and Efficient Cogeneration which stipulates that all customers and suppliers of electricity in the Federation of BiH are obliged to take part of the electricity generated using renewable energy sources, in accordance with that law and FERK's acts. FERK's Rulebook on Obligatory Share and Purchase of Electricity Generated from Renewable Energy Sources prescribes obligations and procedures for taking over minimum quantities of electricity generated in plants using renewable energy sources and efficient cogeneration, for all suppliers and eligible customers, on an annual basis. Pursuant to the aforementioned Rulebook, all customers and suppliers of electricity in the Federation of BiH are obliged to purchase from eligible producers all produced electricity at the referent price, until the renewable energy market becomes operative and quotas related to the binding objectives of the Law on Renewable Energy Sources and Efficient Cogeneration are met. The same Rulebook stipulates that FERK shall determine the percentage of obligatory share of electricity generated from renewable energy sources by 15 December of the current year, that is required to be purchased by suppliers and eligible customers who import electricity for their own needs, based on the Action Plan for Use of Renewable Energy Sources in the Federation of BiH, Balance of Energy Needs of the Federation of Bosnia and Herzegovina, i.e. data on annual plans of electricity generation of eligible producers and electricity consumption of end customers from FERK's Rulebook on Reporting for Traders, IPPs and Operator for RES and Cogen. This percentage serves suppliers of end customers and eligible customers who import electricity for their own needs, to plan amounts for the procurement of prescribed quantities of electricity from renewable energy sources and is determined on the basis of planned values. In accordance with the above, FERK has determined for 2020 the percentage of obligatory share of electricity generated from renewable energy sources, which must be purchased by all suppliers who supply end customers in the Federation of BiH and eligible customers who import electricity for their own needs for 2020 and it is 8.44%.

Percentage of obligatory share of electricity Year 2017 2018 2019 2020

Percentage of obligatory share 3.64% 3.35% 7.16% 8.44%

Table 2. Percentage of obligatory share of electricity in the last four years

Decision on determining the percentage for the calculation of the variable part of the regulatory fee for power entities for 2019 Official Gazette FBiH, 98/19

The Rulebook on Methodology and Manner of Calculating Regulatory Fees for Licensees stipulates, inter alia, that FERK will determine a percentage for calculating the variable part of the regulatory fee for specific year by a special decision, and that the same decision will define possible

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harmonization of variable parts of regulatory fees for the reason of application of two different percentages in one year, and that the percentage for the calculation of the variable part of the regulatory fee will be applied until a new decision is made. After the adoption of the FERK’s Budget for 2019 by the Parliament of the Federation of Bosnia and Herzegovina, and the determination of the realized surplus of revenues over expenditures, which is allocated to revenues for 2019, FERK has, on 19th regular session held on 20 December 2019, made a Decision on determining the percentage for the calculation of the variable part of regulatory fees for 2019. The decision determines the percentage for the calculation of the variable part of regulatory fees for 2019, which is applied to the realized/planned annual total income from electricity activities to licensees performing electricity activities, except for licensees for electricity generation whose total installed capacity is up to and including 150 kW, as well as the amounts of adjustment of regulatory fees calculated in 2019 on the basis of the Decision on temporary regulatory fee for licensees performing electricity activities and licensee for Operator of RES and CoGen for 2019 (Official Gazette of the Federation of BiH, 101/18). Following the adoption of the Decision on Determining the Percentage for the Calculation of the Variable Part of Regulatory Fees for 2019, FERK's has, on regular session held 20 December 2019, issued a Decision determining individual amounts of annual regulatory fees for 2019 for all licensees for performing electricity activities and Operator for RES and Cogen.

Decision on temporary regulatory fee for 2020 Official Gazette FBiH, 98/19

In order to ensure the financial stability and liquidity of FERK's operations, all due to the smooth performance of tasks within its competence, FERK has, on regular session held on 20 December 2019 made the Decision on Temporary Regulatory Fee for Licensees for Performing Electricity Activities and licensee for Operator for RES and Cogen for 2020. This decision determines for performing power activities and the licensee for the Operator for RES and Cogen for 2020. After issuing a decision determining the percentage for calculating the variable part of the regulatory fee for 2020 and defining the adjustment of the variable parts of the regulatory fee due to the application of two different percentages in one year, FERK determined individual amounts of annual regulatory fees for all licensees for electricity activities and the licensee for Operator for RES and Cogen.

Public/universal service providers and service of supplier of last resort in the Federation of Bosnia and Herzegovina

Pursuant to Article 13, paragraph (1) of the Law on Electricity in the Federation of Bosnia and Herzegovina, in connection with the Decision on Establishing Interim Energy Policy Guidelines for All Participants in the Electricity Sector (Official Gazette of the Federation of BiH, 12/14) Government of FBiH, at its session held on 8 October 2014, passed a Decision on determining the public/universal service provider and the supplier of last resort. This decision determined that EP BiH and EP HZ HB, as electricity supply licensees – I Tier licensees, are granted the status of public suppliers and determined the obligation to provide public/universal electricity supply service and service of supply of last resort on the territory of the Federation of BiH, each in the area of its activity. Furthermore, Article 20 of the Rulebook on Eligible Customer Supply and the Procedure for Supplier Switching, stipulates that the public supplier proposes the price of the public supplier's service, according to which it supplies electricity within the universal service, in accordance with the Methodology for determining the price of the public supplier in the Federation of BiH. Also,

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this article stipulates that prices must be proposed to FERK no later than 60 days before their planned application, as well as that FERK gives consent to the proposed prices, and in case the prices proposed by the public supplier are not determined in accordance with the mentioned methodology, FERK will not give consent to the proposed prices, in which case FERK determines the prices of the public supplier's services in accordance with the subject methodology. It is also stipulated that the public supplier, after obtaining FERK's approval of the proposed prices of the public supplier's services, i.e. after FERK determines the price of the public supplier's services, shall publish the prices of the public supplier's services including electricity purchase price, public supplier's service price and price for usage of transmission/distribution network, on its website and bulletin board.

Decision on giving consent to EP HZ HB on the proposal of the price of the public supplier service for the provision of universal service Official Gazette FBiH, 84/19

EP HZ HB submitted to FERK, on 2 October 2019, its Decision on determining the proposal of the price of the service of the public supplier for the provision of universal service from 1 January 2020, No. I-10043/19 dated 27 September 2019. The proposed price of the service of the public supplier EP HZ HB is based on the planned consumption of active electricity and billing capacity, and the plan of consumption of over-taken reactive energy for customers who will be supplied as part of the universal service. The public supplier, in accordance with Article 4 of the Methodology for determining the prices of the public supplier for the provision of universal service in the Federation of BiH, provides the necessary energy and capacity for customers who have the right to be supplied as universal service at an average price of 73.26 BAM/MWh and includes electricity procurement from EP HZ HB power plants, procurement of electricity on the market and procurement from generators from renewable energy sources. The cost of procurement of electricity for customers who are supplied within the universal service in the total amount of 65.002 million BAM is allocated to the billing determinants of active electricity and billing capacity. The cost of the supply service, which amounts up to 10% of the total cost of electricity supply for customers within the universal service, i.e. BAM 6.500 million for the most part (78.4%) is allocated to the billing element customer metering point and a smaller part (21.6%) on the billing element active electricity. The cost of using the network in the total amount of 73.135 million BAM was determined by applying tariff rates for distribution system users from the Decision on tariff rates for distribution system users of the JP EP HZ HB (Official Gazette of the Federation BiH, 99/17), where the total cost of the distribution network amounts to BAM 58.064 million, and the total cost of using the transmission network amounts to BAM 15.071 million. Based on a careful analysis of the submitted price proposal of the public service provider for the provision of universal service, FERK determined that the price proposal of the public supplier service EP HZ HB starting with 1 January 2020 was determined in accordance with the Methodology for determining the price of public service provider for universal service in the Federation BiH, and at its 16th regular session held on 31 October 2019 made a Decision on giving consent to the EP HZ HB on the proposal of the price of the service of the public supplier for the provision of universal service.

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PUBLIC SERVICE SUPPLIER PRICE - EP HZ HB

DIFFERENTIATION UNIVERSAL SERVICE

BILLING UNIT HOUSEHOLDS COMMERCIALS DETERMINANTS SEASONAL DAILY I tar II tar I tar II tar III tar IV tar V tar group group group group group group group

1 2 3 4 5 6 7 8 9 10 11

CUSTOMER'S BAM 1,90 1,90 20,00 5,20 5,20 1,90 1,90 METERING POINT

HIGHER 6,64 6,64 20,12 20,12 20,12 6,64 6,64 BILLING BAM/kW/ CAPACITY month LOWER 5,11 5,11 15,48 15,48 15,48 5,11 5,11

BIGGER 19,74 17,98 25,66 19,74

HIGHER SMALLE 15,79 20,53 15,79 9,87 8,99 12,83 R 9,87 ACTIVE ENERGY pf/kWh BIGGER 15,18 13,84 19,74 15,18

LOWER SMALLE 12,15 15,79 12,15 7,59 6,92 9,87 7,59 R

OVER-TAKEN REACTIVE ENERGY pf/vary 0,00 0,00 3,22 0,00 0,00 0,00 0,00

Table 3. Prices of service of public supplier EP HZ HB

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List of documents published in Official Gazette FBiH

All acts within the jurisdiction of FERK shall be published in the Official Gazette FBiH. In addition, FERK publishes all documents and secondary legislation on its website. The list of documents published in the Official Gazette FBiH in 2019 is given in the following table:

Date of Off.Gaz. Date Regular No. Name Regular NO. published Session Session 1. Decision 06-03-936-04/74/18 5/19 30.01.2019 I. 21.01.2019 2. Decision 06-03-943-05/75/18 5/19 30.01.2019 I. 21.01.2019 3. Decision 06-03-950-05/76/18 12/19 22.02.2019 II. 11.02.2019 4. Decision 06-03-1025-06/78/18 16/19 15.03.2019 III. 27.02.2019 5. Decision 06-03-12-03/1/19 16/19 15.03.2019 III. 27.02.2019 6. Decision 06-03-956-06/77/18 16/19 15.03.2019 III. 27.02.2019 7. Decision 06-03-139-04/3/19 16/19 15.03.2019 III. 27.02.2019 8. Decision 06-03-23-07/2/19 18/19 22.03.2019 IV. 14.03.2019 9. Decision 06-03-270-07/8/19 28/19 26.04.2019 VI. 15.04.2019 10. Decision 06-03-140-04/4/19 28/19 26.04.2019 VI. 15.04.2019 11. Decision 07-02-323-03/19 30/19 08.05.2019 VII. 26.04.2019 12. Decision 06-03-271-05/9/19 30/19 08.05.2019 VII. 26.04.2019 13. Decision 06-03-410-04/19 30/19 08.05.2019 VII. 26.04.2019 14. Decision 06-03-302-05/10/19 30/19 08.05.2019 VII. 26.04.2019 15. Decision 06-03-451-02/19 30/19 08.05.2019 VII. 26.04.2019 16. Decision 06-03-321-04/12/19 34/19 22.05.2019 VIII. 14.05.2019 17. Decision 06-03-245-07/6/19 41/19 14.06.2019 IX. 07.06.2019 18. Decision 06-03-1080-07/79/18 41/19 14.06.2019 IX. 07.06.2019 19. Decision 06-03-253-06/7/19 45/19 28.06.2019 X. 21.06.2019 20. Decision 06-03-502-04/19 45/19 28.06.2019 X. 21.06.2019 21. Decision 06-03-658-02/19 45/19 28.06.2019 X. 21.06.2019 22. Decision 06-03-689-02/19 45/19 28.06.2019 X. 21.06.2019 23. Decision 06-03-524-04/19 52/19 24.07.2019 XI. 12.07.2019 24. Decision 06-03-562-05/19 52/19 24.07.2019 XI. 12.07.2019 25. Decision 06-03-658-03/19 52/19 24.07.2019 XI. 12.07.2019 26. Decision 06-03-660-05/19 52/19 24.07.2019 XI. 12.07.2019 27. Decision 07-01-109-04/19 52/19 24.07.2019 XI. 12.07.2019 28. Decision 06-03-654-07/19 63/19 30.08.2019 XII. 22.08.2019

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Date of Off.Gaz. Date Regular No. Name Regular NO. published Session Session 29. Decision 06-03-667-07/19 63/19 30.08.2019 XII. 22.08.2019 30. Decision 06-03-744-05/19 63/19 30.08.2019 XII. 22.08.2019 31. Decision 06-03-782-02/19 63/19 30.08.2019 XII. 22.08.2019 32. Decision 06-03-512-06/19 63/19 30.08.2019 XII. 22.08.2019 33. Decision 06-03-491-05/19 63/19 30.08.2019 XII. 22.08.2019 34. Decision 06-03-666-06/19 63/19 30.08.2019 XII. 22.08.2019 35. Decision 06-03-485-11/19 63/19 30.08.2019 XII. 22.08.2019 36. Decision 06-03-742-06/19 69/19 20.09.2019 XIII. 10.09.2019 37. Decision 06-03-757-07/19 69/19 20.09.2019 XIII. 10.09.2019 38. Decision 06-03-143-08/5/19 69/19 20.09.2019 XIII. 10.09.2019 39. Decision 06-03-771-05/59/18 69/19 20.09.2019 XIII. 10.09.2019 40. Decision 06-03-306-13/11/19 71/19 27.09.2019 XIV. 20.09.2019 41. Decision 06-03-636-07/19 71/19 27.09.2019 XIV. 20.09.2019 42. Decision 06-03-769-05/19 71/19 27.09.2019 XIV. 20.09.2019 43. Decision 06-03-773-06/19 71/19 27.09.2019 XIV. 20.09.2019 44. Decision 06-03-778-05/19 71/19 27.09.2019 XIV. 20.09.2019 45. Decision 06-03-779-05/19 71/19 27.09.2019 XIV. 20.09.2019 46. Decision 06-03-801-06/19 71/19 27.09.2019 XIV. 20.09.2019 47. Decision 06-03-820-05/19 71/19 27.09.2019 XIV. 20.09.2019 48. Decision 01-07-1013/19 76/19 16.10.2019 XV. 07.10.2019 49. Decision 06-03-948-01/19 76/19 16.10.2019 XV. 07.10.2019 50. Decision 05-07-1011-03/19 84/19 13.11.2019 XVI. 31.10.2019 51. Decision 06-01-228-30/19 84/19 13.11.2019 XVI. 31.10.2019 52. Decision 07-02-1002-01/19 84/19 13.11.2019 XVI. 31.10.2019 53. Decision 06-03-437-14/19 84/19 13.11.2019 XVI. 31.10.2019 54. Decision 06-03-883-07/19 84/19 13.11.2019 XVI. 31.10.2019 55. Decision - 06-03-926-06/19 84/19 13.11.2019 XVI. 31.10.2019 56. Rulebook 06-01-228-32/19 84/19 13.11.2019 XVI. 31.10.2019 57. Rulebook 07-02-600-08/19 84/19 13.11.2019 XVI. 31.10.2019 58. Rulebook 08-07-1012-03/19 84/19 13.11.2019 XVI. 31.10.2019 59. Decision 06-08-1187/19 94/19 13.12.2019 XVII. 28.11.2019 60. Decision 06-03-944-05/19 94/19 13.12.2019 XVII. 28.11.2019 61. Decision 06-03-740-09/19 94/19 13.12.2019 XVII. 28.11.2019 62. Decision 06-03-653-07/19 94/19 13.12.2019 XVII. 28.11.2019

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Date of Off.Gaz. Date Regular No. Name Regular NO. published Session Session 63. Decision 06-03-1079-03/19 94/19 13.12.2019 XVII. 28.11.2019 64. Decision 06-03-848-07/19 94/19 13.12.2019 XVII. 28.11.2019 65. Decision 06-03-963-04/19 94/19 13.12.2019 XVII. 28.11.2019 66. Decision 06-03-949-03/19 94/19 13.12.2019 XVII. 28.11.2019 67. Rulebook 08-07-1186/19 94/19 13.12.2019 XVII. 28.11.2019 68. Decision 07-07-1289/19 97/19 25.12.2019 XVIII. 13.12.2019 69. Decision 06-03-1055-06/19 97/19 25.12.2019 XVIII. 13.12.2019 70. Decision 06-03-802-06/19 97/19 25.12.2019 XVIII. 13.12.2019 71. Decision 06-03-810-06/19 97/19 25.12.2019 XVIII. 13.12.2019 72. Decision 06-03-847-06/19 97/19 25.12.2019 XVIII. 13.12.2019 73. Decision 06-03-762-08/19 97/19 25.12.2019 XVIII. 13.12.2019 74. Decision 06-03-420-12/19 97/19 25.12.2019 XVIII. 13.12.2019 75. Decision 06-03-1059-03/19 97/19 25.12.2019 XVIII. 13.12.2019 76. Decision 06-03-1105-04/19 97/19 25.12.2019 XVIII. 13.12.2019 77. Decision 06-03-1042-04/19 97/19 25.12.2019 XVIII. 13.12.2019 78. Decision 06-03-1060-03/19 97/19 25.12.2019 XVIII. 13.12.2019 79. Decision 06-03-1131-01/19 97/19 25.12.2019 XVIII. 13.12.2019 80. Decision 06-03-1130-01/19 97/19 25.12.2019 XVIII. 13.12.2019 81. Decision 06-03-746-05/19 97/19 25.12.2019 XVIII. 13.12.2019 82. Decision 06-03-714-10/19 97/19 25.12.2019 XVIII. 13.12.2019 83. Decision 06-03-853-07/19 97/19 25.12.2019 XVIII. 13.12.2019 84. Decision 06-03-1003-07/19 97/19 25.12.2019 XVIII. 13.12.2019 85. Decision 08-07-1311/19 98/19 27.12.2019 XIX. 20.12.2019 86. Decision 08-07-1318/19 98/19 27.12.2019 XIX. 20.12.2019 87. Decision 08-07-1312/19 98/19 27.12.2019 XIX. 20.12.2019 Table 4. List of documents published in Official Gazette FBiH in 2019 Court decisions - lawsuits During 2019, FERK received six lawsuits initiating administrative disputes for annulment of the decision made by FERK resolving in the second instance on the appeal of the applicant for the issuance of prior or electricity permit who was denied access to the distribution network or was dissatisfied with the conditions for access to the network. One lawsuit was dismissed, two lawsuits were upheld and the cases were returned to the first instance body for retrial, while three proceedings are pending. Also, three proceedings from 2017 and four proceedings from 2018 are pending.

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Licensing Licensing for performing power activities, issuance of licenses to the Operator for RES and CoGen and initial approvals for the construction of direct lines are activities arising from the Law on Electricity in the Federation of Bosnia and Herzegovina. The Rulebook on Licensing stipulates that FERK keeps a summary register of licenses and initial approvals in electronic form, as well as a list of submitted license applications on its website. This register has been set up and is regularly updated. Licensing for performing energy activities in the oil sector is an activity arising from the Law on Oil Products in the Federation of Bosnia and Herzegovina. The Rulebook on Licensing also stipulates that FERK keeps a summary register of licenses in electronic form, as well as a list of submitted license applications, on its website. It is organized and updated regularly.

Licenses issued for performing electric power activities in 2019 In the reporting period, FERK reviewed the applications for licensing for performing power activities. A total of 50 licenses were issued in 2019, of which 45 licenses for power generation, one license for power supply I Tier license and four licenses for power supply II Tier license. The following table provides a nominal overview of companies that have licensed for performing power activities.

Type of Date of Licensee Validity Period License Issuance SOR “FOTONAPONSKA ELEKTRANA NEVIĆ-POLJE1” 21.01.2019 10 yrs owner Robert Begić from Novi Travnik “HE Energy” d.o.o. Stolac (renewal) 21.01.2019 10 yrs JP “Elektroprivreda HZ HB” d.d. Mostar (amendments) 27.02.2019 until 31.12.2022 d.o.o. “BH STRUJA” Cazin 14.03.2019 5 yrs “BRATSTVO” d.d. Gornji Vakuf – Uskoplje (renewal) 26.04.2019 10 yrs GP TOMING d.o.o. Grude (amendment) 26.04.2019 until 02.12.2027 “SOLIS” d.o.o. Lukavac (renewal) 26.04.2019 10 yrs “ALFE-MI” d.o.o. Živinice 14.05.2019 10 yrs ENERGY d.o.o. from Kakanj (amendments) 07.06.2019 until 27.04.2021 “FEKO-ENERGY” d.o.o. Zenica (transfer) 07.06.2019 until 13.09.2027 “ESCO ECO ENERGIJA” d.o.o. LIVNO (renewal) 21.06.2019 10 yrs Power Generation “KAMENJAK – COP” d.o.o. from Travnik 21.06.2019 5 yrs. License “OD SE SOLAR 1-2” Hadžići (amendments) 12.07.2019 until 28.01.2021 ENERGOSOL d.o.o. from Jablanica (amendments) 12.07.2019 until 22.07.2020 “S elektro” d.o.o. BOSANSKI PETROVAC 22.08.2019 5 yrs “G-TANK” d.o.o. Vitez 22.08.2019 5 yrs SOLIK d.o.o. from Prozor-Rama (amendments) 22.08.2019 until 26.08.2028 “KUDIĆ”, owner Mile Kudić 22.08.2019 12 yrs “EMY” d.o.o. Zenica (renewal) 10.09.2019 10 yrs F.L WIND d.o.o. Tomislavgrad 10.09.2019 5 yrs “SOLAR” Ustikolina, owner Hasib Duranović 20.09.2019 10 yrs MARSSEL d.o.o. Mostar 20.09.2019 5 yrs ENERGIJA HODOVO d.o.o. Sarajevo 20.09.2019 5 yrs EnergEtica d.o.o. Sarajevo 20.09.2019 5 yrs “HE ENERGY” d.o.o. Stolac (amendments) 20.09.2019 until 05.03.2029 “VG MONTING” d.o.o. Vitez 20.09.2019 12 yrs “BICAKCIC SOLAR” d.o.o. from Sarajevo 20.09.2019 5 yrs

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Type of Date of Licensee Validity Period License Issuance D.O.O. „ZAMCOMERC“ Fojnica 20.09.2019 10 yrs “ENERGY” d.o.o. from Kakanj (amendments) 31.10.2019 until 27.04.2021 “Inter-Energo” d.o.o. Gornji Vakuf-Uskoplje (amendments) 31.10.2019 until 19.07.2021 “NEDER” d.o.o. Tešanj 31.10.2019 10 yrs “RSV ENERGY” d.o.o. BOSANSKI PETROVAC 28.11.2019 5 yrs “ILMA” d.o.o. Tešanj 28.11.2019 5 yrs “BAHEN GRADNJA” .d.o.o. Sarajevo (renewal) 28.11.2019 10 yrs “SFE INETRQUALITY”, owners Zineta Ćemerlić and Ivan 28.11.2019 until 28.08.2029 Babić, from Prozor-Rama (amendments) “SUNČANA LIVADA” , owner Stipo Leovac – ZGONE 2 28.11.2019 12 yrs “ANTONIO COMMERCE” d.o.o. Mostar 13.12.2019 5 yrs “BIOENERGI” d.o.o. Vitez 13.12.2019 5 yrs “BL COMMERCE” d.o.o. Sarajevo 13.12.2019 5 yrs BV SUNCE d.o.o. from Stolac 13.12.2019 5 yrs “EBH” d.o.o. Sarajevo (amendments) 13.12.2019 until 21.01.2029 “KAMEN STIL” D.O.O. TEŠANJ 13.12.2019 5 yrs LOWRE d.o.o. Međugorje Čitluk 13.12.2019 5 yrs OIL-AC d.o.o. Mostar 13.12.2019 5 yrs “KOMING” d.o.o. Kakanj 13.12.2019 12 yrs

Power Supply – I JP “Elektroprivreda HZ HB” d.d. Mostar (amendments) 13.12.2019 until 31.12.2021 Tier License Axpo BH d.o.o. from Sarajevo (renewal) 22.8.2019 5 yrs “PETROL BH OIL COMPANY” d.o.o. Sarajevo (renewal) 22.8.2019 5 yrs Power Supply – II Tier License JP “Elektroprivreda HZ HB” d.d. Mostar (amendments) 13.12.2019 until 31.12.2023 ICT d.o.o. from Široki Brijeg (renewal) 13.12.2019 5 yrs

Table 5. Review of issued licenses in the reporting period In addition to issued licenses 17 applications for licensing has been processed , as follows: 1. “ANAREA” d.o.o. Gračanica, application for Power Generation License (15.01.2020), 2. “ECO ENERGY” d.o.o. Gračanica, application for amendments of Power Generation License (15.01.2020), 3. d.o.o. “I-CRNI” Cazin, application for Power Generation License (15.01.2020), 4. ROLAR d.o.o. Grude, application for Power Generation License (06.02.2020), 5. SERVIS JELIĆ d.o.o. Široki Brijeg, application for Power Generation License (06.02.2020), 6. SOLAR INVEST d.o.o. Konjic, application for Power Generation License (06.02.2020), 7. “DOOR-DESIGN” d.o.o. Sarajevo, application for Power Generation License (06.02.2020), 8. “NINO-HA” d.o.o. Doboj Jug, application for Power Generation License (06.02.2020), 9. “VELOVO KUĆIŠTE”, owner Anita Ivanković-Lijanović, application for Power Generation License (06.02.2020), 10. DF GRADNJA d.o.o. Konjic, application for Power Generation License (17.02.2020), 11. “BINGO” d.o.o. Tuzla, application for renewal of Power Generation License (09.03.2020), 12. ENERGOSOL d.o.o. from Jablanica, application for amendments of Power Generation License (09.03.2020), 13. SOLATRONIC d.o.o. Sarajevo, application for Power Generation License (24.03.2020), 14. “ESPRO” d.o.o. Donji Vakuf, application for renewal of Power Generation License (24.03.2020), 15. EP HZ HB, application for amendments of Power Generation License (in procedure), 16. EP HZ HB, application for amendments of Power Distribution License (15.01.2020),

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17. Axpo BH d.o.o. from Mostar, application for amendments of Power Supply II Tier License (15.01.2020).

Rejected application for licensing Licensing applications Total processed Licenses in proceedings in front applications in 2019 incompleteness incompetence withdrawal of of FERK the application 50 0 0 0 17 67 Table 6. . Number of processed applications in 2019 As of 31 December 2019, there were a total of 195 licenses for performing power activities, as follows: for the activity of power generation 176 licenses, for the activity of power distribution 2 licenses, for the activity of power supply – I Tier, also, 2 licenses, for the activity power supply – II Tier 14 licenses and one operating license to the Operator for RES and CoGen. The following table provides an overview of the total valid licenses by type of activity:

Power Generation Power Power Supply I Tier Power Supply II Tier License for Total licenses Licenses Distribution Licenses Licenses Operator for Licenses RES and CoGen 176 2 2 14 1 195 Table 7. Number of valid licenses for performing power activities at 31 December 2019 Having in mind the total number of valid permits on 31 December, 2019 it can be said that FERK strives to continuously enable the fulfilment of the goals set by the laws, i.e. gradual introduction, regulation and development of the electricity market, inclusion of all market participants in the international electricity market, as well as introduction of competition. The types of licenses for performing power activities and the validity period are also published in the FERK summary register, which can also be found on the FERK website. Table 8 shows an overview of plants from renewable energy sources whose licensees for the power generation have acquired the status of an eligible producer, by type of technology, for the period 2015-2019.

Type of RES and CoGen plant 2015 2016 2017 2018 2019 sHPP 44 52 57 60 64 SPP 63 107 128 142 178 WPP 1 1 1 6 8 Landfill gas** 1 1 1 1 1 Total 109 161 187 209 251 Table 8. Overview of constructed plants using RES (RES and CoGen plants) ** The license has not been renewed but plant is registered as it has been constructed

Licenses issued for performing energy activities in the oil sector in 2019 In the reporting period, FERK reviewed all received applications for the issuance of licenses for performing energy activities in the oil sector. In 2019, a total of 6 permits were issued, of which two licenses for wholesale of oil products except LPG, 2 licenses for the transport of road transport of oil products, 1 license for storage of oil products except LPG and one license for LPG trading. The following table provides an overview of companies that have been licensed to perform energy activities.

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Type of License Licensee Date of Issuance Validity period

License for Wholesale of Oil DOO “PETROL-P” Bihać 15.04.2019 14.04.2024 Products except LPG “VARIPLAST” d.o.o. Gračanica 28.11.2019 27.11.2024

License for Road Transport of Oil AD-TANK d.o.o. Stolac 27.02.2019 26.02.2024 Products ERO d.o.o. Čapljina 26.04.2019 25.04.2024

License for Oil Products Storage ArcelorMittal Zenica d.o.o. 11.02.2019 10.02.2024 except LPG

License for LPG Trading MESSER MOSTAR PLIN d.o.o. 22.08.2019 21.08.2024

Table 9. Overview of issued licenses in the reporting period

License for Wholesale License for Road License for Oil License for LPG Total Issued of Oil Products except Transport of Oil Products Storage Trading Licenses in Oil Sector LPG Products except LPG

2 2 1 1 6 Table 10. Number of issued licenses in oil sector in 2019

In addition to the above issued licences, 6 applications for amendments to licenses were processed, of which 3 licenses for road transport of oil products, 1 license for storage of oil products except LPG and 2 licenses for LPG trading. The following table provides a list of names of companies whose licenses for performance of energy activity have been amended.

Type of License Licensee Validity period until

“MERKEZ-OIL” d.o.o. Novi Travnik 14.01.2023 License for Road Transport of Oil Products ANTUNOVIĆ AGS" d.o.o. Orašje 21.06.2021 “PAPIĆ” d.o.o. TOMISLAVGRAD 21.06.2021

License for Oil Products Storage except “HIFA-OIL” d.o.o. Tešanj. 14.06.2021 LPG

License for LPG Trading d.o.o. “INTER-BUTAN” Cazin 03.07.2021 Table 11. Number of amended licenses in oil sector in 2019 In the reporting period, also 11 applications were processed: 1. ENERGOPETROL d.d. Sarajevo, application for revocation of License for Wholesale of Oil Products except LPG (decision – temporary/permanent revocation 21.06.2019/12.07.2019), 2. JP Elektroprivreda BiH d.d. - Sarajevo ZD RMU “Kakanj” d.o.o. – Kakanj, application for License for Storage of Oil Products except LPG (decision on rejection of application 10.09.2019), 3. Rudnici “KREKA” d.o.o. Tuzla, application for License for Storage of Oil Products except LPG (decision on rejection of application 10.09.2019),

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4. “ALMY” d.o.o. Zenica, application for License for Storage of Oil Products (conclusion on cancellation of the application 10.09.2019), 5. JP “Elektroprivreda BiH” d.d. - Sarajevo, application for License for Storage of Oil Products except LPG (conclusion on cancellation of the application 10.09.2019), 6. “BTG” d.o.o. TOMISLAVGRAD, application for License for Wholesale of Oil Products except LPG (licensing decision 15.01.2020), 7. “HIFA-PETROL” d.o.o. Sarajevo, application for amendments of License for Road Transport of Oil Products (decision on amendments of the license 06.02.2020), 8. “HIFA-PETROL” d.o.o. Sarajevo, application for amendments of License for LPG Trading (decision on amendments of the license 17.02.2020), 9. JP Elektroprivreda BiH d.d. - Sarajevo, Zavisno društvo Rudnik mrkog uglja “Đurđevik” d.o.o.- Đurđevik, application for License for Storage of Oil Products (conclusion that application is treated as not submitted 09.03.2020) 10. LUKAS TP NAKIĆ d.o.o. Široki Brijeg, application for License for Wholesale of Oil Products except LPG (pending), 11. MARK PETROL d.o.o. Kiseljak, application for License for Wholesale of Oil Products except LPG (pending),

Licenses Amended Rejected applications for licensing Pending in Total Licenses front of processed Conclusion FERK applications Conclusion to be in 2019 Temporary/Permanen t Decision on treated as Revocation on refusal cancelation not submitted 6 6 1 2 2 0 6 23

Table 12. Number of processed applications in 2019

Therefore, as of 31 December 2019 there were a total of 123 licenses for performing energy activities, as follows: 41 licenses for wholesale of oil products except LPG, 46 licenses for the road transport of oil products, 20 licenses for storage of oil products except LPG and 16 licenses for LPG trading. License for Wholesale of License for Road License for Oil License for LPG Total Oil Products except LPG Transport of Oil Products Storage Trading Licenses in Oil Sector Products except LPG 41 46 20 16 123

Table 13. Number of valid licenses for performance of energy activities on 31.12.2019

Having in mind the total number of valid licenses in the oil sector on 31 December 2019 it can be said that FERK seeks to enable the fulfilment of the goals set by the Law on Oil Products in the Federation of Bosnia and Herzegovina, i.e. supervision and regulation of relations between importers, wholesalers, retailers, transporters and customers of oil products, and ensuring non- discrimination, effective competition and the efficient functioning of the oil products market, with particular attention to the security of supply of oil products. The types of licenses for performing energy activities and the period of validity are published in the FERK Summary Register, which can also be found on the FERK website.

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Revocation of Licenses Article 21, paragraph (1) of the Law on Electricity in the Federation of BiH (Official Gazette FBiH, 66/13, 94/15 and 54/19) prescribes the jurisdictions of FERK, and, inter alia, the issuance, renewal, transfer or revocation of licenses for power generation, distribution, supply and trade and the Operator for RES and CoGen. Also, the laws and secondary legislation and regulations state that the licensee is obliged to submit data and information within the required deadlines and to cooperate with FERK, to fulfil the obligations set out in the license. In addition, the Rulebook on Licensing stipulates that FERK will revoke the license if: the licensee submits a request for revocation of the license; the licensee does not comply with the conditions and terms set in the licenses; the licensee does not provide FERK with the required information and data during the validity period of the license, necessary for the performance of activities within the jurisdiction of FERK; the licensee has provided false information, on the basis of which FERK has issued, amended or transferred to another person the issued license; the licensee intentionally submits false information and data to FERK during the validity period of the license, the licensee does not provide FERK's authorized persons direct access to the equipment and documentation; bankruptcy or liquidation proceedings have been initiated against the licensee or the concession has been revoked from the licensee; the licensee does not pay the regulatory fee .

Revocation of - licenses for performing power activities in power sector

During 2019, FERK revoked 4 licenses for power supply – II tier from licensees: Al Trade d.o.o. from Mostar, Vitol Adriatik d.o.o. from Sarajevo, EURO-POWER d.o.o. Tešanj and ERDAL d.o.o. from Sarajevo, while one application for revocation of the license for power generation was processed, for "INTER" d.o.o. Tešanj. AL Trade d.o.o. from Mostar received FERK's License for Power Supply – II Tier, No. 06-03-508/28/17 on 09.06.2017, with a validity period from 09.06.2017 until 09.06. 2019. FERK has received, from the applicant, on 4 February 2019, a request for revocation of a license due to its decision not to perform the activity for which it is licensed. Based on the above, on its 3rd regular session, held on 27 February, 2019, FERK issued a decision by which revokes the License for Power Supply –II Tier order of Al Trade d.o.o. from Mostar. Vitol Adriatik d.o.o. from Sarajevo received FERK's License for Power Supply – II Tier, No. 06-03- 946/70/17 on 02.02.2018 with a validity period from 15.03.2018 until 14.03.2023. Based on the decision of the founder on the liquidation of the company and the opening of liquidation proceedings, the applicant submitted a request to FERK for revocation of the license. Based on the above, at its 10th regular session, held on 21 June, 2019, FERK issued a decision by which revokes the License for Power Supply – II Tier of Vitol Adriatik d.o.o. from Sarajevo. EURO-POWER d.o.o. Tešanj received FERK's License for Power Supply – II Tier No. 06-03-507/10/15 on 23 July 2015 with a validity period from 06.12.2015 until 05.12.2020. On 16.09.2019 FERK received a request from the applicant for revocation of his license due to its decision not to perform the activity for which it was issued a work permit. Based on the above, on its 15th regular session, held on 7 October, 2019, FERK issued a decision by which License for Power Supply II Tier is revoked from licensee EURO-POWER d.o.o. Tešanj. ERDAL d.o.o. from Sarajevo received FERK's License for Power supply II Tier No. 06-03-213/14/18 on 28 March 2018 with a validity period from 15.06.2018 until 14.06.2023. On 16.09.2019 FERK received a request from the applicant for revocation of the licensee due to financial problems due to the inability to collect receivables from its customers, and it does not perform the activity for which it was licensed. Based on the above, on its 17th regular session, held on 28.11.2019 FERK issued a decision by which from ERDAL d.o.o. from Sarajevo revokes the License for Power Supply II Tier. INTER d.o.o. Tešanj received FERK's License for Power Generation No. 06-03-679/50/17 on 24 October 2017 with a validity period from 24.10.2017 until 23.10.2022. On 09.12.2019 FERK

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received a request from the applicant for revocation of the license due to the impossibility of performing the power activity for which it was licensed, because there was an agreed termination of the lease agreement for business premises due to the sale of the leased property, installed solar photovoltaic power plant "INTER IN 23-1". Since FERK determined that the stated request was not complete, the request was still in the procedure before FERK until the end of 2019.

Type of License Licensee Revocation Date

Al Trade d.o.o. from Mostar 27.02.2019 Vitol Adriatik d.o.o. from Sarajevo 21.06.2019 License for Power Supply II Tier EURO-POWER d.o.o. Tešanj 07.10.2019 ERDAL d.o.o. from Sarajevo 28.11.2019 Table 14. Overview of revoked licenses in power sector

Revocation of Licenses for performing energy activities from the oil sector In 2019, FERK, at the request of the licensee ENERGOPETROL d.d. Sarajevo passed a decision on temporary or permanent revocation of the License for Storage of Oil Products except LPG. The reason for submitting a request for revocation of a license is the cessation of activities.

Date of Date of Temporary Type of License Licensee Permanent Revocation Revocation License for Storage of Oil ENERGOPETROL d.d. Sarajevo 21.06.2019 12.07.2019 Products except LPG Table 15. Overview of revoked licenses in oil sector

Monitoring the execution of terms and conditions from issued licenses

Article 21, paragraph (10) of the Law on Electricity in the Federation of Bosnia and Herzegovina stipulates that FERK, within its competencies, monitors and supervises the execution of terms and conditions from issued licenses, while laws and secondary legislation state that, within its jurisdiction, FERK monitors the fulfilment of conditions from the license, and that in order to meet the conditions from the license, the licensee is obliged to submit data, other documents and information at the request of FERK, which are necessary for FERK for the purpose of application of the Law on Electricity in the Federation of Bosnia and Herzegovina and the Law on the Usage of Renewable Energy Sources and Efficient Cogeneration, in order to enable FERK to exercise its jurisdiction in accordance with the law, rules and regulations of FERK. It is also stipulated that the licensee is obliged to notify FERK of any violation of the terms of the license within 10 days of learning that the violations have occurred. Authorized employees of FERK, in accordance with this point, have the right to perform regular and extraordinary monitoring in the premises of the licensee and have the right to access facilities, plants, equipment and documents to inspect the licensed activity, in accordance with the terms of the license. License is obliged to cooperate with FERK during the preparation and during the performance of monitoring.

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Monitoring of licensees for performance of power activities During the analysis of regular reports of licensees for performing power activities of generation and supply – II Tier, it was determined that there are certain inconsistencies, i.e. discrepancies in fulfilling the conditions of issued licenses, and the Commission for Monitoring of Licensed Activities in the reporting period monitored a total of six licensees, of which four licensees for Power Supply – II Tier and two licensees for the power generation. Report and comments FERK's Monitoring on report on No. Licensee decision performed on monitoring adopted on

internal meeting on 1. “PETROL BH OIL COMPANY” d.o.o. Sarajevo 17.05.2019 07.06.2019 / 2. HSE BH d.o.o. from Sarajevo 29.08.2019 10.09.2019 / 3. Alpiq Energija BH d.o.o. from Sarajevo 17.10.2019 28.11.2019 / 4. Danske Commodities BH d.o.o. from Sarajevo 14.11.2019 13.12.2019 / 5. “KARA-DRVO” d.o.o. Fojnica 05.09.2019 In procedure / 6 “EKO ENERGIJA” d.o.o. Kalesija 25.09.2010 31.10.2019 / Table 16. Performed monitoring of licensees for performing power activities in 2019

Monitoring covered the period from the licensing to the time of monitoring. The subject of monitoring was focused on those license conditions for which inconsistencies or discrepancies were established from the submitted regular reports. For licensees of power supply II tier, the monitoring was focused on the discrepancy between the reported revenues from the realized sale of electricity in the data from the financial report for 2018 and the data received in the monthly reports for the same period, in accordance with FERK's Rulebook on Reporting. In the case of licensees for power generation, monitoring was focused on technical and energy parameters (determining the actual condition of installed equipment and plants used for electricity generation), as well as meeting other license conditions with special reference to performing licensed activities, laws, regulations and technical standards, contracts, employee structure, submission of monthly reports, etc. On the performed supervision, the commission prepared reports on the performed regulatory supervision, which were submitted to the licensees to provide comments. After analysing the report and receiving comments from the five licensees, there was no need to issue a decision with orders to take measures, and FERK adopted it at an internal meeting. In the case of one licensee where the recommendations in the report on the performed regulatory monitoring have been identified, where the licensee did not act within the set deadline, FERK will take the necessary steps in the following period.

Monitoring of licensees for performing energy activities in oil sector

Article 26, paragraph (1) of the Law on Oil Products in the Federation of Bosnia and Herzegovina stipulates that FERK supervises the performance of licensed energy activities. The laws and secondary legislation state that, within its jurisdiction, FERK monitors the fulfilment of the conditions from the license. In order to meet the requirements of the license, the licensee is obliged to submit data, other documents and information at the request of FERK, which are necessary for FERK for the purpose of application of the Law on Oil Products in the Federation of Bosnia and Herzegovina. This enables FERK to exercise its jurisdiction in accordance with FERK law, rules and regulations. Also, it is prescribed that the licensee is obliged to notify FERK of any violation of the conditions of the license immediately after the occurrence thereof. Authorized

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employees of FERK, in accordance with this point, have the right to perform regular and extraordinary supervision in the premises of the licensee and have the right to access facilities, equipment and documents in order to inspect the licensed activity, in accordance with the license conditions. The licensee is obliged to cooperate with FERK during the preparation and during the monitoring. In the reporting period, the Monitoring Committee supervised 20 licensees from the oil sector, who were inspected for 12 licenses for wholesale of oil products except LPG, 14 licenses for the road transport of oil products and one license for LPG trading activity, and two licenses for storage of oil products except LPG.

Report and comments Performed No. Licensee Monitored Activity adopted on Monitoring internal meeting

1. “DELTA PETROL” Kakanj, d.o.o. Road Transport of Oil Products 18.1.2019. 11.2.2019.

2. “TRGOŠPED” d.o.o. Kakanj Road Transport of Oil Products 18.1.2019. 11.2.2019.

Wholesale of Oil Products except LPG 3. “KAKANJ PETROL” d.o.o. Kakanj 18.1.2019. 11.2.2019. Road Transport of Oil Products

4. EUROBENZ d.o.o. Grude Storage of Oil Products except LPG 21.2.2019. 14.3.2019.

5. BARAĆ-CO d.o.o. Čitluk Road Transport of Oil Products 21.2.2019. 14.3.2019.

Wholesale of Oil Products except LPG 6. “LAGER” d.o.o. Posušje 22.3.2019. 15.4.2019. Road Transport of Oil Products

7. “AME” d.o.o. Breza Wholesale of Oil Products except LPG 12.4.2019. 7.6.2019.

8. “ISTRABENZ PLINI” d.o.o. Breza LPG Trading 12.4.2019. 7.6.2019.

Wholesale of Oil Products except LPG 9. “HIFA” d.o.o. Tešanj 23.5.2019. 21.6.2019. Road Transport of Oil Products Wholesale of Oil Products except LPG 10. “HIFA-OIL” d.o.o. Tešanj Road Transport of Oil Products 23.5.2019. 21.6.2019. Storag e of Oil Products except LPG 11. “HIFA-BENZ” d.o.o. Tešanj Road Transport of Oil Products 23.5.2019. 21.6.2019. 12. “PETROBIT” d.o.o. Tešanj Road Transport of Oil Products 23.5.2019. 21.6.2019. 13. “MERKEZ-OIL” d.o.o. Novi Travnik Road Transport of Oil Products 21.6.2019. 12.7.2019. Wholesale of Oil Products except LPG 14. “ECOTOK” d.o.o. Travnik 21.6.2019. 12.7.2019. Road Transport of Oil Products

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Report and comments Performed No. Licensee Monitored Activity adopted on Monitoring internal meeting Wholesale of Oil Products except LPG 15. “POLO” d.o.o. Kalesija 25.9.2019. 31.10.2019. Road Transport of Oil Products

JP “MEĐUNARODNI AERODROM 16. Wholesale of Oil Products except LPG 25.9.2019. 31.10.2019. TUZLA” d.o.o. Wholesale of Oil Products except LPG “JUNUZOVIĆ-KOPEX” d.o.o. 17. 25.9.2019. 31.10.2019. Lukavac Road Transport of Oil Products

Wholesale of Oil Products except LPG 18. “HIFA-PETROL” d.o.o. Sarajevo 20.11.2019. 27.11.2020. Road Transport of Oil Products

19. “SAGA ENERGY” d.o.o. Sarajevo Wholesale of Oil Products except LPG 12.12.2019. 15.1.2020.

20. “MERCATOR BH” d.o.o. Sarajevo Wholesale of Oil Products except LPG 12.12.2019. 15.1.2020.

Table 17. Performed monitoring of licensees for performing energy activities in oil sector

The monitoring covered the period from the licensing to the moment of conducting the monitoring and was focused on the facts, i.e. possible changes thereof, on the basis of which the license was issued. On the performed monitoring, the Commission prepared reports on the performed regulatory monitoring, which were submitted to the licensees for comments. After analysing the report and receiving comments, and as there was no need to issue a decision with orders to take measures, FERK adopted them at an internal meeting. In addition to monitoring, the Monitoring Committee, in the reporting period, also checked the data before issuance of two licenses for the activity of storage of oil products except LPG and one license for the activity of LPG trading. After the data checks, the applicants were licensed. (Table 18).

Activity for which check -up was Date of Check - No. Licensee Decision on Licensing done up Storage of Oil Products except 1. ArcelorMittal Zenica d.o.o. 18.1.2019 11.2.2019 LPG Storage of Oil Products except 2. „HIFA-OIL“ d.o.o. Tešanj 2.7.2019 12.7.2019 LPG 3. MESSER MOSTAR PLIN d.o.o. LPG Trading 21.8.2019 21.8.2019 Table 18. Performed check-ups for data of licensee for performance of energy activities from oil sector

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Customer Protection

In the area of customer protection, FERK actively participates in number of ways, especially through implementation of monitoring of power entities, monitoring quality of services of power entities, pursuant provisions of Law on Electricity in the Federation of BiH and General Conditions for Electricity Supply, resolving individual electricity customer complaints as well as claims of third party who has been denied access to network or is not satisfied with conditions for access, based on authorities given pursuant Law on Electricity in the Federation of BiH. Customers seek protection of their rights in front of FERK with submitting complaint related to the dispute on right for electricity supply, obligation to be supplied with electricity, tariffs/prices for subject supply, delays or rejection of supply, electricity supply quality and related services. Also, FERK in second degree resolves claims by applicant related to issuance of initial or permanent power permit, rejection of access to distribution network or if it is not satisfied with conditions for accessing the network. All complaints and claims are processed in respective FERK expert departments, and through this process FERK has insight in operation of power entities and application of rules of power entities related to customer protection. FERK conducts the procedure on complaint, pursuant provisions of FERK Rulebook on Public Hearings and Resolving Requests, Disputes and Claims where parties at the procedure, if they do not succeed in agreement, are instructed to realize their rights in front of court of jurisdiction. FERK’s decisions, when it decides as second degree body, are final and they can only be challenged by starting administrative dispute with filing a lawsuit at the court of jurisdiction. With introducing regulation in power sector, policy of active customer protection has been launched and communication between different participants on electricity market, especially with end customers, has been established. Customer protection includes also responses on questions submitted by power entities, end customers and other interested customers related to application of provisions of General Conditions for Electricity Supply and FERK’s regulations. During 2019, 38 claims of applicants have been submitted related to issuance of initial or permanent power permits that have been rejected access to network or are not satisfied with conditions for access to network, and 103 complaints related to right for electricity supply, obligation to be supplied with electricity, tariffs/prices for subject supply, delays or rejection of supply, electricity supply quality and related services. In total 141 issues have been received, in accordance with Articles 39 and 51 of Law on Electricity in the Federation of BiH, which can be classified as follows:

Type of Issue No. rejected access to network or non-satisfied with conditions for access to network 38 related to right to be supplied with electricity 43 related to obligation to be supplied with electricity 9 related to tariffs/prices for electricity supply 22 related to delays in or rejection of electricity supply 14 related to electricity supply quality and related services 15 Table 19. Type and number of issues received in 2019 In 2019, 118 issues have been resolved, and rest of 23 are ongoing or transferred and resolved in 2020.

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Type of claim or complaint % Rejected access to network or non-satisfied with conditions for access to network 26,95 Right to be supplied with electricity 30,50 Obligation to be supplied with electricity 6,38 Tariffs for electricity supply 15,60 Delay in or rejection of electricity supply 9,93 Electricity supply quality and related services 10,64 Table 20. Statistical overview by types of claims and complaints of customers in 2019

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International Membership and Projects

Description of Organisation / Project Organisation/Project Activities of FERK in reporting period ERRA is an organization that brings together independent energy regulators, primarily from Central Europe and the Eurasian region, with associate members. The main goal of this association is to increase the exchange of information and experiences among full and associate members of ERRA. ERRA brings together members at: ERRA Energy Invest ment and Regulatory Conferences and ERRA Chairman Meetings, the Standing Committee on Tariffs and Pricing, the Licensing and Competition Committee and the Working Group on Consumer Protection and Retail Market, and the ERRA General Assembly. FERK is an associate member of ERRA. www.erra.net The 18th ERRA Energy Investment and Regulatory Conference was held in Riga, Latvia on 22- 24 September, 2019 with the basic theme of energy transition and centralization. FERK representatives participated in the conference. Simultaneously with the conference, a meeting of ERRA chairmen was held. The Standing ERRA Licensing and Competition Committee held two meetings in 2019. The first meeting was held in the period from 15 to 16 April 2019, in Skopje, Northern Macedonia. The second meeting was held after the Energy and Investment Conference in Riga, Latvia, in the period from 25 to 26 September 2019. Topics addressed by the committee in 2019 included: design and implementation of market models for RES incentive schemes, reports on monitoring the functioning of retail electricity markets, best practices of regulatory commissions in communication and public information, unbundling of TSO-applicable models and lessons learned, introduction of 3Smart project-integrated energy management in building systems, energy networks and infrastructure of major cities in the Danube region, harmonization of ERRA licensing procedures in the field of electricity and gas in ENC countries, various business models of rooftop solar power plants, energy communities, introduction of EU grid codes and the need to harmonize with the grid rules of non-EU countries, energy efficiency in the tran sformation, transmission and distribution of electricity, the green certificate market, the new design of the EU market, etc. The Standing ERRA Tariff and Pricing Committee in 2019 held two meetings. The meetings were held in Skopje, Northern Macedonia on 15 and 16 April, 2019 and in Riga, Latvia on 25 and 26 September, 2019 . FERK had its representative at a meeting in Riga held during the Energy and Investment Conference. Topics covered by the Tariff and Pricing Committee in 2019 included: tariff database, role and importance of mini-networks, calculation of WACC and rate of return, analysis of distribution and transmission tariffs for electricity, tariff methodology in the field of natural gas. The ERRA Working Group for Customers Protection and Retail Markets, on 5 and 6 December 2019 in Budapest, Hungary, held a working meeting on topics related to market surveillance, the rights of customers to produce and supply electricity, the competencies of regulatory bodies related to supply contracts, energy metering cases (meter readings and technical malfunctions) , on-line contracts, procedures related to the approval of compensation to consumers in case of poor quality of services provided by the distribution system operator with special reference to poor qualit y of supplied electricity and exchange of information between distribution system operators and suppliers and traders regarding reading, billing and supplier switching. On 2 September 2019, a meeting of ERRA contact persons was held in Budapest to discuss the current situation in the members as well as the activities carried out by ERRA and the possibilities for improving cooperation with the Association, but also bilaterally between members. The Energy Community works through the institutions established under the Energy Community Energy Community Treaty, namely: the Energy Community Secretariat, the Ministerial Council, the Regulatory Board, Secretariat PHLG, and the Electricity Forum, the Social Forum, the Oil Forum and the Gas Forum. Meetings of the Ministerial Council are held twice a year in the country of presidency. www.energy-community.org

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Description of Organisation / Project Organisation/Project Activities of FERK in reporting period Energy Community Secretariat (ECS) in 2019 organised numerous trainings, workshops and permanent forums with the participation of FERK representatives. The Energy Community Electricity Forum, the 24th in a row, was held on 28-29 May, 2019 in Athens, Greece. FERK commissioners participated in the work of the forum, and the main topics of the forum were the Energy Community after 2020; Smart, safe and prepared; Is t he EC prepared for a smart and secure future ?; Cleaning - Energy sector in the Energy Community and the legacy of subsidized coal; Outside the EC and Connectivity and coordination. In Vienna, Austria, on 19 September 2019 the Second Forum on Dispute Resol ution related to the impact of climate change on dispute resolution, recent cases of investment arbitration, dispute resolution in Eastern Europe and the future of energy dispute resolution was o rganized, while on 19 and 20 September 2019 with the co-organ ization of the Florence School of Regulation, the 7th Vienna Forum "European Energy Law" was held, which included topics related to the legal aspects of renewable energy sources, coercive measures related to environmental and climate laws, market, security of supply and decarbonisation, legal aspects of the "new world of energy ”and aspects of security of energy supply. 11th Oil Forum, was held in the period from 08.10.2019 until 09.10 2019, in Belgrade, Serbia. The forum's program covered the main topics: Oil Security, Transposition and Implementation of the Oil Stocks Directive, Trends and Challenges: Petrochemical and Refinery Industries, and Climate Change and Low Carbon Strategies. On 28 September 2019, a workshop of the Energy Community Secretariat and ENTSO on network codes was held in Vienna, Austria. The program of this workshop included the following topics: "Transposition of network codes in the Energy Community", "Implementation of network codes in the countries of the European Union", "Implementa tion of network codes in the countries of the Energy Community - experiences and challenges" The sixth meeting of the Coordination Subgroup for Security of Electricity Supply was held on 11 December, 2019 in Vienna, Austria. Topics included: "Recent develo pments in EU legislation on security of electricity supply", "New regulations on preparedness for supply risks", "Report on security of supply of Member States of the Energy Community", "New subgroups within the coordination group for security of supply" ", and Study on Cyber Security in the Energy Sector ". USAID Project – Energy Investment Activity (hereinafter: EIA) is a project organized by the United States Agency for International Development (hereinafter: USAID), with the aim of developing and stren gthening the energy sector in Bosnia and Herzegovina, and the project was completed in September 2019. In partnership with local authorities, the project worked to identify opportunities to stimulate investment in renewable energy plants, to launch commerc ial processes that enable electricity customers to choose suppliers in the market, and to help create regulations requiring energy efficiency measures. www.usaideia.ba Project USAID EIA One of the recognizable activities of the USAID E IA project is the organization of the Energy Summit supported by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH through the projects "Stimulating Renewable Energy Sources in BiH" and "Stimulating Energy Efficiency in BiH" and the British Embassy Sarajevo under the auspices of the Ministry of Foreign Trade and Economic R elations of BiH, the state, and both entity regulatory commissions. The leading topic of the fifth Energy Summit was the transition of the energy sector in BiH. The summit was held in Neum from 16 to 18 April 2019. Representatives of government institutions, international organizations, potential investors and experts discussed topics crucial for the development of the energy sector in BiH: reform of the incentive schemes for renewable energy sources, biomass potential, electricity market, energy efficiency, gas sector perspective, and the role of media and the public in achieving a successful transition of the energy sector . The project "Stimulating Renewable Energy Sources in Bosnia and Herzegovina" is implemented by the German Society for International Cooperation (GIZ). GIZ Projects The project provides technical assistance to partners and covers five areas (strategic framework, legal and regulatory framework, administr ative procedures and incentive schemes, innovative technologies and capacity building and development of concrete tools). The project is aimed

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Description of Organisation / Project Organisation/Project Activities of FERK in reporting period through four areas of activity at creating and strengthening the preconditions for increasing the use of renewabl e energy sources in BiH (general framework conditions for the renewable energy sector, development of the bioenergy and innovative technologies, improving the use of small hydropower plants, incentive schemes and financing of RES projects based in the loca l community). During 2019, GIZ held four workshops and two working visits of consultants to FERK , related to the project "Stimulating Renewable Energy Sources in BiH" -Reform of the incentive system for RES in Bosnia and Herzegovina. The workshops were attended by members of the working group from institutions closely related to the topic of renewable sources, as well as consultants from GIZ and DNV GL. Members of the working group together with consultants discussed topics related to auctions - the scope and manner of conducting auctions, to determine thresholds, categories and quotas for RES technologies (for small and large installations), calculation of new market referent price, treatment of prosumers within net calculation in the Law on VAT in BiH, sup port for small installations, civil energy, legislative, regulatory and financial framework and indirect measures to support RES. After the workshops, in December 2019, GIZ submitted to FERK for comments proposals for documents that emerged from the worksh ops and which will significantly contribute to the further regulation of issues related to the field of renewable sources in Bosnia and Herzegovina. Organized by USAID and NARUC (National Associati on of US Regulators), and in cooperation NARUC Distribution with ERRA, a project was launched to develop a Distribution and Transmission Network Code for and Transmission natural gas. The project was established with the aim of assisting the countries of Southern and Network Code for Eastern Europe in drafti ng the rules for the gas market, as well as assistance in drafting the Gas distribution and transmission network code for natural gas. The project ended in 2019 with a final workshop held in Budapest on 4 and 5 April, 2019, which was attended by FERK representatives involved in this project. Organized by USAID and NARUC, the Market Performance Workstream project was launched. The project was established with the aim of defining regional needs, in accordance with a new possi ble regional project activity in encouraging the establishment of a market called "Market Operation". As part of the project, a technical workshop was held in the period from 27.06. to 28.06. 2019 in NARUC Sarajevo. The purpose of this workshop was: to improve relations with the leadership of each Market Performance regulatory commission and establish contact with selected technical staff by priorities, to define Workstream in more detail individual priority topics, implementation challenges with specific regulatory issues, to determine the level of regulatory and market development for each country and to respectively assist in regulatory partnership, request input from regulatory agencies on the structure, participation in the regulatory partnership and the expected results of the regional partnership based on the “cracks” that each country needs to close. The result is NARUC’s recommendation to USAID on the form, scope, timing, and projected outcomes for each regulatory bridge constructed.

Organized by USAID and NARUC, the Cyber Security project was launched. The project was established with the aim of helping the countries of Southern and Eastern Europe in understanding the importance of Cyber Security, as well as the steps needed to develop a Cyber Security strategy. NARUC USAID and NARUC assist Southern and Eastern European regulators in creating a regulatory Cyber Security strategy for the energy sector, and help regulators adjust their strategy to their priorities, resources, and needs in line with international best practice.

As part of the project, a technical workshop was held in the period from 08.04. to 11.04.2019 in Warsaw, Poland. The workshop discussed the importance of Cyber Security standards and prudent considerations for Southeast European energy regulators. These are the first documents of their kind to be developed to help energy regulators manage the many challenging dimensions

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Description of Organisation / Project Organisation/Project Activities of FERK in reporting period of Cyber Security. The workshop was hel d as a mutual cooperation of energy regulators from the Black Sea region and Southeast Europe, which allowed the technical staff to share their knowledge about Cyber Security and share previous experience and progress. FERK representatives are involved in this project and participated in this technical workshop. A technical workshop was also held, in the period from 28.10. to 29.10.2019 in Skopje, Northern Macedonia. Energy regulators in Southeast Europe must be prepared to judge the prudence of Cyber Security spending. To assist regulators in fulfilling this mission, NARUC, with USAID support, is developing the Cybersecurity Tariff Guidelines, a set of principles and procedures designed to help regulators identify and compare Cyber Security costs, dev elop, and utilize Cyber Security metrics to review and approve investment in Cyber Security. Organized by USAID and NARUC, the Customer Empowerment and Public Outreach for Southeast Europe project was launched as the second phase of the Price Comparison Tool and Customer Communication Development Project. The aim of the project is to provide assistance to regulators in communication and education with customers, all related to the process of NARUC Customers opening the electricity market. Empowerment and Public Outreach As part of the Regulatory Partnership project, NARUC, with the financial support of USAID, organized a study tour on "Public Outreach and Communication" for representatives of regulatory commissions from BiH in the United States in the period from 4 to 8 November 2019. Representatives visited regulatory commissions in Ohio (PUCO, Columbus) and Kentucky (PSC, Frankfort) where they learned about their way of working in public information and communication in general. The study tour was rated as very successful. CIGRÉ is an abbreviation of the Conseil International des Grands Réseaux Électriques or the International Council for Large Power Systems. CIGRÉ is a professional association based in Paris and with membership on all five con tinents. Its activities include the issue of power systems and their components, i.e. it deals with the development, construction, operation and maintenance of power plants and their elements. There are three types of CIGRÉ activities through: study committees, professional meetings and national branches. FERK representatives participated in the 34th CIGRÉ Serbia Conference from 2 to 6 June, 2019 in V rnjačka Banja, Serbia. The 175 professional papers were presented at the conference, which dealt with current topics in the electricity sector. At this conference, special attention was paid to the electricity market and regulation, as well as the distribu tion network and distributed CIGRÉ generation. In the period from 20 to 23 October 2019, the 14th conference of the BH branch of CIGRÉ was held in Neum, where FERK representatives participated as part of the study committee Electricity Market and Regulation with presentations on the following topics: region, ways of organizing the electricity market, customers and generators in the free electricity market, the market of renewable energy sources and other related topics. At the 14th CIGRÉ Croatia Conference, held from 11 to 13 November 2019 in Šibenik, FERK representatives followed with great interest within the Study Committee the El ectricity Market and Regulation, presentations in the field of decentralization and digitization of the electri city market, energy st rategies and its impact on the regulation and market of electricity, network rules for electricity in the EU and other important topics within the jurisdictions of regulatory commissions . he International Electricity Distribution Conference CIRED (a cronym for Congres International des Réseaux Electriques de Distribution; International Conference on Electricity Distribution) is an association that brings together stakeholders in the field of electricity distribution: the widest range of experts from distribution companies, institutes and universities , equipment manufacturers and service providers, suppliers and customers , regulators. The goal of CIRED, CIRED according to the Statute, is to increase professional competence and ability, skills and knowledge, in the broadest area of electricity distribution, including distributed generation. In the period from 3 to 6 June 2019 in Madrid, Spain, the 25th International CIRED Conference was held, at which a FERK representative participated in the study committee De velopment of the Distribution System on the topic of Rational use of connecting capacity for the purpose energy efficient distribution networks. The conference was attended by over 1,500 representatives from around the world, and five papers from Bosnia an d Herzegovina were presented .

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Description of Organisation / Project Organisation/Project Activities of FERK in reporting period The Croatian Association of Business Lawyers is a non-profit professional association whose goals are to achieve professional, scientific and practical activities of its members, stu dy economic and legal regulations and their application by publishing the magazine PUG, as well as Croatian holding meetings of business lawyers once a year in Opatija. Association of Organized by the Croatian Association of Business Lawyers, a 57th conference of lawyers was, Business Lawyers in the period from 8 May, 2019 until 10 May 2019 in Opatija, Croatia. The consultation program included topics related to news on companies, protection of legal entities in the practice of the ESJLP, nullity, arbitration topics, capital market and state guarantees, as well as misdemeanour liability and administrative disputes. Consulting house Revicon d.o.o. Sarajevo deals with the provision and development of a wide range of business, tax, accounting, financial and other forms of consulting and publ ishing, focused on needs of companies, business people and other market participants in order to adapt to economic and social changes in Bosnia and Herzegovina. REVICON At the 19th International Economic Forum "Corporate Governance", which was held in Dubrovnik on 5 and 6 December, 2019, in addition to presenting the financial results of the economy in BiH in 2018, and opportunities and directions for action towards effective change, there was also discussions on socio-economic reforms in the period 2019-2022, and on sustainable and accelerated economic growth, increased competitiveness of the economy and improving the business environment in Bosnia and Herzegovina .

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FERK's Financial Statement

FERK's Budget for 2019

FERK's Budget for 2019 was adopted at the session of the House of Representatives on 29 October, 2019 and at the session of the House of Peoples on 19 December, 2019, and published on 31 December 2019 in the Official Gazette FBiH, 99/19. The budget was adopted in the total amount of BAM 3,787,266.00, and consists of:

Type of Revenue Amount (BAM) Regulatory fees for performing power activities 3,407,266.00 Regulatory fees for performing activities in the oil sector 315,000.00 One-off fees 50,000.00 Other income 15,000.00 TOTAL REVENUE FOR 2019 3,787,266.00 Table 21. Budget Plan - Revenues for 2019

Budget Item Description Amount (BAM) 6111 Gross salaries and employee benefits 2,113,981.20 6112 Compensation of employee costs 150,000.00 612 Employer contributions 239,831.30 613 Expenditure on materials and services 563,453.50 6131 Travel expenses 94,900.00 6132 Energy expenditure 24,000.00 6133 Expenditure on utilities and communications 47,500.00 6134 Administrative material 24,300.00 6135 Expenditure on transport services and fuel 15,650.00 6136 Rental of property and equipment 186.003,50 6137 Material and repair and maintenance services 41,500.00 6138 Expenditure on insurance, banking and payment services 17,400.00 6139 Contracted and other special services 112,200.00 82 Capital expenditures 720,000.00 821300 Procurement of equipment 80,000.00 821500 Procurement of fixed assets in the form of rights 37,000.00 821311 Procurement of office furniture 3,000.00 821200 Procurement of buildings 600,000.00 TOTAL EXPENDITURES FOR 2019 3,787,266.00 Table 22. Budget Plan – Expenditures for 2019

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In the preparation of its Final Financial Statement for 2019, and otherwise in bookkeeping, FERK applied the applicable legislation and chart of accounts for budget users, as the most acceptable solution until the legislation changes in this area. This practice was confirmed by the Audit Office of the Institutions of the Federation of BiH, which in 2017 audited the financial statements and the compliance of activities, financial transactions and information stated in the financial statements with laws and other regulations for 2016 and gave a positive opinion on them. As prescribed by Article 19 of the Budget Accounting Regulation, the content of annual financial statements must contain an accurate, true and reliable overview of revenues and receipts, expenditures and other payments, as well as the state of assets, liabilities and sources of funds with prescribed financial statements in notes (analysis of statements), which form an integral part of the annual statements, clarifications are given regarding certain specifics of the institution, deviations in the data presented on the prescribed forms as well as accounting policies related to the recognition and valuation of certain accounting items. The table below shows the realization of revenues and expenditures in 2019 in relation to the plan:

Type of Revenue Revenue Collected/planned Calculated Calculated Calculated Realised Revenue Plan collected revenue expenditures expenditures /planned expenditures/collected surplus of (BAM) (BAM) (BAM) (%) (BAM) revenues revenues revenues (%) (%) over expenditures (BAM)

1 2 3 4 (3/2) 5 6(5/2) 7(5/3) 8(3 -5) Regulatory 3,722,266.00 3,674,738.69 98.72 fees One -off 50,000.00 92,800.00 185.60 fees Other 15,000.00 2,154.96 14.37 revenues 3,787,266.00 3,769,693.65 99.50 TOTAL 2,759,727.92 72.87 73.21 1,009,965.73

Table 23. Realised revenues and expenditures in relation to plan for 2019

The total realized surplus of revenues over expenditures in 2019 in the amount of BAM 1,009,965.73 is distributed by the Decision on the adoption of the annual final statement for 2019 No. 08-11-278/20 as follows: • the amount of BAM 600,000 is transferred to the allocated funds for capital investments • the amount of BAM 409,965.73 is transferred to the surplus of revenues over expenditures and allocated to revenues for 2020. The Decision on Transfer of Funds to the Special Purpose Account No. 05-08-372/19 defines that in 2019 the funds will be continuously transferred to the special purpose account, all in accordance with the inflow of funds and the approved FERK budget for 2019. Pursuant to this Decision, during 2019, the collected and unspent amount of BAM 600,000.00 planned and adopted on the item "Procurement of Buildings" of the FERK Budget was transferred to the special purpose account, all in accordance with the Decision of the Parliament of the Federation of BiH No. 01.02- 05-1876/15 dated 17.12.2015 published in the Official Gazette FBiH, 102/15.

FERK ACTIVITY REPORT FOR 2019 45

FERK's Revenues in 2019 In 2019, FERK worked on the basis of the Decision on Temporary Regulatory Fee Licensees for Performing Power Activities and Licensee for Operator of RES and CoGen for 2019 (Official Gazette FBiH, 101/18 of 19 December, 2018), and after that in accordance with the Rulebook on Methodology and Manner of Calculation of Regulatory Fees for Licensees - consolidated text (Official Gazette FBiH, 94/19), the Decision on determining the percentage for calculating the variable part of regulatory fees for 2019 (Official Gazette FBiH, 98/19 of 27 December 2019) and Decision No. 08-07-1312/19 (Official Gazette FBiH, 98/19 of 27 December 2019). Considering that FERK, in the previous 2018, ended its year with a surplus of revenues in the amount of BAM 415,725.82, in accordance with the Law on Electricity, it transferred them to revenues in 2019. Thus, the planned amount of regulatory fees for performing power activity is BAM 3,407,266.00 reduced by the realized surplus of revenues from 2018 in the amount of BAM 415,725.82, and the total regulatory fee for power entities in the amount of BAM 2,991,540.18 has been determined. The calculation of regulatory fees for licensees for performing activities in the oil sector, planned in the FERK Budget for 2019 in the amount of BAM 315,000.00, was performed on the basis of the Rulebook on Methodology and Manner of Calculation of Regulatory Fees for Licensees. Thus, during the business year 2019, FERK collected BAM 3,769,693.65 of total revenues on the basis of regulatory fees in the amount of BAM 3,674,738.69 (including the transferred surplus of revenues of BAM 415,725.82), on the basis of one-time fees of BAM 92,800.00 and on the basis of other revenues the amount of BAM 2,154.96 which is shown in the table below: Collected Revenues Plan Collected Revenues No. Type of Revenues revenues/plan (BAM) (BAM) (%) 1. Regulatory Fees 3,722,266.00 3,674,738.69 98.72

2. One-off Fees 50,000.00 92,800.00 185.60 3. Other Revenues 15,000.00 2,154.96 14.37 TOTAL REVENUES 3,787,266.00 3.769.693,65 99.54 Table 24. Type and structure of FERK revenues Explanation: Total collected revenues in 2019 amount to bam 3,769,693.65, which is a decrease of 0.46% compared to the plan. Observed by types of collected revenues, revenues from regulatory fees decreased by 1.28% compared to the plan, primarily due to a smaller surplus of revenues compared to the previous reporting period, which is an integral part of revenues from regulatory fees. Revenues from one-off application processing fees were collected by 85.60% due to the increased number of applications for licenses. Other revenues decreased compared to the plan by 85.63%. Revenues by types in 2019 are shown in the table below:

FERK ACTIVITY REPORT FOR 2019 46

No. Revenues Amount (BAM) 1 Revenues from per forming public services 3,767,538.69

1.1. One-off fees 92,800.00

1.2. Regulatory fees 3,259,012.87

1.3. Surplus of Revenues from 2018 transferred to 2019 415,725.82

2 Other revenues 2,154.96

2.1. Revenues from interests on deposits 2,154.10

2.2. Revenues from positive exchange rate differences 0.86 TOTAL REVENUES 3,769,693.65 Table 25. Types of Revenues in 2019

Expenditures in 2019

In 2019, FERK operated with realized expenditures in the total amount of BAM 2,759,727.92, i.e. 72.87% of the total planned expenditures for 2019, i.e. 73.21% of the total collected revenues in 2019. During 2019, FERK had an average of 36 employees.

Realized / Planned in 2019 Realized in Realized/ total No. Expenditures (BAM) 2019 (BAM) Planned (%) expenditures (%) 1. Gross wages and salaries 2,113,981.20 1,834,797.13 86.79 66.48 2. Compensation of employees' expenses 150,000 .00 138,553.09 92.37 5.02 3. Employer's contributions (to salaries) 239,831.30 207,652.64 86.58 7.52 4. Travel expenses 94,900.00 68,082.15 71.74 2.47 5. Electricity expenditure 24,000.00 11,818.02 49.24 0.43 6. Expenditure on communications and utilit ies 47,500.00 30.334.56 63.86 1.10 7. Administrative material 24,300.00 16,211.09 66.71 0.59 8. Transport services and fuel 16,110.00 15,476.83 96.07 0.56 9. Rental of space 193,753.50 193,248.60 99.74 7.00 10 . Ongoing maintenance 41,500.00 29,523.95 71.14 1.07 Insurance services, banking services, 17,400.00 12,590.04 72.36 0.46 11. negative exchange rate differences 12 . Contracted services 103,990.00 83,440.02 80.24 3.02 13 . Procurement of fixed assets 720,000.00 117,999.80 16.39 4.28 TOTAL EXPEN DITURES 3,787 ,266. 00 2,759,727. 92 72 .87 100 .00 Table 26. Types of Expenditures in 2019

Expenditure reductions compared to the plan were achieved on all expenditure items as can be seen from the table above.

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The column "Planned in 2019" in the above table refers to the amended Budget of FERK for 2019 according to the Decision on redistribution and correction of positions of the Proposal of the Financial Plan - FERK Budget for 2019 No. 08-08-1255/19. The most significant reductions (more than 50%) in relation to the expenditure plan are visible in the item procurement of fixed assets. The decrease occurred due to the fact that the planned procurement of the building in the amount of BAM 600,000.00 was not realized during 2019, and the funds were planned and adopted in the FERK Budget for 2019, all in accordance with the Decision of the Parliament of the Federation of BiH No. 01, 02-05-1876/15 dated 17.12.2015 (Official Gazette FBIH, 102/15).

FERK ACTIVITY REPORT FOR 2019 48

PART TWO – ENERGY SECTORS in the Federation of Bosnia and Herzegovina under FERK's jurisdiction

POWER SECTOR IN THE FEDERATION OF BOSNIA AND HERZEGOVINA

Power Generation

Power generation in the Federation of BiH 1 is performed in 261 generation facilities owned by 176 licensees for power generation. Within EP BiH, power generation is performed in two thermal power plants: TPP Tuzla (Unit 3, Unit 4, Unit 5 and Unit 6) and TPP Kakanj (Unit 5, Unit 6 and Unit 7), three hydropower plants: HPP Jablanica, HPP Grabovica and HPP Salakovac, and in small hydropower plants: SHPP Una, SHPP Krušnica, SHPP Modrac, SHPP Bihać, SHPP Snježnica, SHPP Osanica and SHPP Bogatići. EP BiH has generation capacities with an installed capacity of 1,704.64 MW, namely 1,181 MW of installed capacities of thermal power plants, 501.30 MW of installed capacities of hydro power plants and 22.34 MW of installed capacities of small hydro power plants.

Generation capacities of EP BiH

No. Generation Facility Commissioning Year Number of installed units Installed Generation Capacities (MW) (MW)

1. Hidoelektrane na Neretvi 501.30 HPP Jablanica 1955 6 x 30,6 183,60 HPP Grabovica 1982 2 x 57,6 115,20 HPP Salakovac 1982 3 x 67,5 202,50 2. TPP Tuzla 715.00 Unit 3 1966 1 x 100 100,00 Unit 4 1971 1 x 200 200,00 Unit 5 1974 1 x 200 200,00 Unit 6 1978 1 x 215 215,00 3. TPP Kakanj 466.00 Unit 5 1969 1 x 118 118,00 Unit 6 1977 1 x 118 118,00 Unit 7 1988 1 x 230 230,00 4. Small HPPs 22.34

TOTAL EP BiH 1,704.64

Table 27. Overview of installed generation capacities by generation facilities for EPBiH

1 Source of data: Monthly reporting to FERK from licensees

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Within EP HZ HB, power generation is performed in seven hydropower plants: HPP Rama, HPP Mostar, PHPP Čapljina, HPP Peć Mlini, HPP Jajce I, HPP Jajce II and HPP Mostarsko blato and one wind power plant WPP Mesihovina. EP HZ HB has generation capacities with an installed capacity of 903.20 MW, namely 852.60 MW of installed capacity of hydropower plants and 50.60 MW of installed capacity of wind farms.

Generation capacities of EP HZ HB

Installed generation No. Generation capacity Commissioning Year Number of installed units (MW) capacity (MW) 1. HPP Rama 1968 2 x 80 160.00 2. HPP Mostar 1987 3 x 24 72.00 3. PHPP Čapljina 1979 2 x 220 440.00 4. HPP Jajce I 1957 2 x 30 60.00 5. HPP Jajce II 1954 3 x 10 30.00 6. HPP Peć Mlini 2004 2 x 15,3 30.60 7. HPP Mostarsko Blato 2010 2 x 30 60.00 8. WPP Mesihovina 2018 22 x 2,3 50.60 TOTAL EP HZ HB 903.20

Table 28. Overview of installed capacities (MW) in generation facilities for EPHZHB

Power Balance and Realization in EP BiH

The planned generation of electricity in hydro and thermal power plants of EP BiH for 2019 amounted to 6,870.3 GWh, which is less for 311.63 GWh, or 4.33% compared to the realized production in 2018, which amounted 7,181.93 GWh. The planned generation for 2019 by hydro and thermal power plants is listed in column 2 of Table 29. The total planned production for 2019, including small hydro power plants was 6,951.70 GWh and by 293.69 GWh or 4.05% is lower in in relation to the realization in 2018 which amounted to 7,245.39 GWh. It is planned that the share of electricity generation from hydropower plants in the total planned generation is 20.31%, thermal power plants 78.52% and small hydropower plants 1.17%. The total realized generation of EP BiH for 2019 in thermal power plants, hydro power plants and small hydro power plants amounts to 6,033.78 GWh and is lower by 917.92 GWh or 13.2% compared to the planned production for 2019. The share of hydro power plants in the total realized generation for 2019 of EP BiH is 23.93% (1,443.95 GWh), the share of thermal power plants is 75.03% (4,527.31 GWh), and small hydro power plants 1.04% (62.52 GWh ). Electricity generation in hydropower plants is planned in accordance with the criteria for planning the operation of hydropower plants defined in the Rulebook on the Preparation and Implementation of Power Balance, and the conditions of valid water permits for hydropower plants on the Neretva River. It is planned that Hidroelektrane na Neretvi (HPP Jablanica, HPP Grabovica, HPP Salakovac) will generate 1,411.60 GWh of electricity in 2019, which is 7.96% or 122 GWh less than the realized generation of hydropower plants in 2018, which was 1,533.60 GWh. The planned generation for 2019 by Hidroelektrane na Neretvi is listed in column 2 of Table 29. The realized production in the Hidroelektrane na Neretvi for 2019 amounts to 1,443.95 GWh and is 32.35 GWh or 2.29% higher than planned for 2019. In the structure of total realized generation for 2019 for Hidroelektrane na Neretvi, HPP Jablanica achieved generation of 742.91 GWh and by 25.31 GWh or 3.53% is higher

FERK ACTIVITY REPORT FOR 2019 50

than planned for 2019 which amounted to 717.60 GWh, HPP Grabovica achieved generation of 280.74 GWh and by 6.26 GWh or 2.18% is less than the planned for 2019 which amounted to 287.0 GWh and HPP Salakovac achieved generation of 420.30 GWh and by 13.30 GWh or 3.27% is higher than planned for 2019, which amounted to 407.0 GWh. The generation of small hydro power plants in EP BiH in 2019 is planned according to the Power Balance in the amount of 81.40 GWh, which is 17.94 GWh or 28.27% higher than the realized generation of small hydro power plants in 2018, which amounted to 63.46 GWh. The realized generation of small hydro power plants in 2019 amounts to 62.52 GWh and is 18.88 GWh or 23.19% lower than planned for 2019. The electrify generation in thermal power plants is planned in accordance with the criteria for planning the operation of thermal power plants defined in the Rulebook for the Preparation and Implementation of the Power Balance. In 2019, the total generation of electricity in thermal power plants is planned at 5,458.70 GWh, which is 189.63 GWh or 3.36% less than the realized generation of thermal power plants in 2018, which amounted to 5,648.33 GWh. The realized total generation in 2019 for thermal power plants of EP BiH amounted to 4,527.31 GWh, which is 931.39 GWh or 17.06% less than planned for the same period which amounts to 5,458.70 GWh. The generation in TPP Tuzla in 2019 amounted to 2,758.89 GWh and is lower by 472.61 GWh or 14.63% of the planned generation for the same period, which amounts to 3,231.50 GWh. In TPP Kakanj, the realized generation for 2019 amounted to 1,768.42 GWh and is lower than planned for 2019 by 458.78 GWh or 20.60%, which amounts to 2,227.20 GWh.

Realized generation Planned generation Realized generation Realized/Planned Name of power plant for 2018 (GWh) for 2019 (GWh) for 2019 (GWh) generation (%) 1 2 3 4=3/2 HPP Jablanica 794,65 17,60 742,91 103.53 HPP Grabovica 304.15 287.00 280.74 97.82 HPP Salakovac 434.80 407.00 420.30 103.27 Total HPP 1,533.60 1,411.60 1,443.95 102.29 Unit 3 172.32 162.00 273.64 168.91 Unit 4 917,78 639,90 428,25 66.92 Unit 5 885,80 1,174.20 939,72 80.03 Unit 6 1,220.14 1,255.40 1,117.28 89.00 Total TPP Tuzla 3,196.04 3,231.50 2,758.89 85.37 Unit 5 559.01 261.40 357,27 136.68 Unit 6 596,58 616.00 381.73 61.97 Unit 7 1,296.70 1,349.80 1,029.42 76.26 Total TPP Kakanj 2,452.29 2,227.20 1,768.42 79.40 Small HPPs 63.46 81.40 62.52 76.81 TOTAL GENERATION 7,245.39 6,951.70 6,033.78 86.80

Table 29. Planned and realized generation of electricity in 2019 and realization of generation for 2018 in EP BiH

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The realized generation of electricity in the period from 2015 to 2019 by the facilities of EP BiH is shown in the following table:

2015 (GWh) 2016 (GWh) 2017 (GWh) 2018 (GWh) 2019 (GWh) Name of Power Plant

1 2 3 4 5 HPP Jablanica 771,12 748,42 485.59 794.65 742.91 HPP Grabovica 279.85 267.67 194.56 304.15 280.74 HPP Salakovac 385.31 379.31 261.26 434.8 420.30 Total HPP 1,436.28 1,395.40 941.41 1,533.60 1,443.95 Unit 3 21.42 238.78 138.87 172.32 273.64 Unit 4 1,128.62 1,065.33 1,122.32 917.78 428.25 Unit 5 1,091.12 1,065.63 959.96 885.8 939.72 Unit 6 1,245.35 1,328.47 1,239.61 1,220.14 1,117.28 Total TPP Tuzla 3,486.51 3,698.21 3,460.76 3,196.04 2,758.89 Unit 5 434.68 472.86 64 4.83 559.01 357.27 Unit 6 501.5 414.57 534.62 596.58 381.73 Unit 7 990.71 1,206.37 1,367.02 1,296.70 1,029.42 Total TPP Kakanj 1,926.89 2,093.80 2,546.47 2,452.29 1,768.42 59.78 68.99 60.38 63.46 62.52 Small HPPs

TOTAL GENERATION 6,909.46 7,256.40 7,009.02 7,245.39 6,033.78

Table 30. Overview of realised generation of electricity in period 2015-2019 in EPBIH

Power Balance and Realization in EPHZHB

The total planned generation of electricity for 2019 in EP HZ HB amounted to 2,532.40 GWh and by 444.0 GWh or 21.26% is higher than the realized generation for 2018, which amounted to 2,088.40 GWh. The planned generation for 2019 by hydro power plants is listed in column 2 of Table 31. The total realized generation for 2019 in EP HZ HB amounted to 2,703.40 GWh and is higher by 171.0 GWh or 6.75% of the planned generation for 2019. In the structure of total realized generation for 2019, the generation of HPP Rama amounts to 739.1 GWh and is 68.6 GWh or 8.49% lower than the planned generation for 2019, PHPP Čapljina 944.62 GWh and 210.82 GWh or 28.73% is higher than the planned generation for 2019, HPP Mostar 242.09 GWh and 1.59 GWh or 0.66% higher than the planned generation for 2019, HPP Jajce I 219.32 GWh and by 4.98 GWh or 2.22% lower than the planned generation for 2019, HPP Jajce II 170.72 GWh and by 2.62 GWh or 1.56% higher than the planned generation for 2019, HPP Peć Mlini 85.17 GWh and 4.67 GWh or 5.80% higher than the planned generation for 2019, HPP Mostarsko Blato 136.40 GWh and 23.8 GWh or 21.14% higher than the planned generation for 2019 and WPP Mesihovina 165.98 and by 1.08 GWh or 0.65% GWh is higher than the planned generation for 2019.

FERK ACTIVITY REPORT FOR 2019 52

Realized generation Planned generation Realized generation for 2019 Realized/Planned Generation Facility in 2018 (GWh) for 2019 (GWh) (GWh) generation (%)

1 2 3 4=3/2 HPP Rama 730.19 807.70 739.10 91.51 PHPP Čapljina 733.80 944.62 128.73 437.50 HPP Mostar 240.50 242.09 100.66 250.07 HPP Jajce I 224.30 219.32 97.78 210.75 HPP Jajce II 168.10 170.72 101.56 164.50 HPP Peć Mlini 80.50 85.17 105.80 83.78 HPP Mostarsko Blato 112.60 136.40 121.14 108.11 WPP Mesihovina 164.90 165.98 100.65 103.50 TOTAL 2,532.40 2,703.40 106.75 2,088.40

Table 31. Realization of generation of electricity in 2018 and plan and realization in 2019 in EP HZ HB

Realized electricity generation in the period from 2015 to 2019 by EP HZ HB facilities is shown in the following table:

2015 (GWh) 2016 (GWh) 2017 (GWh) 2018 (GWh) 2019 (GWh) Generation Facility 1 2 3 4 5 HPP Rama 809.11 687.22 429 .36 730. 19 739.10 PHPP Čapljina 252.53 145.34 278. 44 437.50 944. 62 HPP Mostar 230.17 232.00 175.04 250.07 242.09 HPP Jajce I 199.61 194.64 177.27 210.75 219.32 HPP Jajce II 163.59 152.80 143.71 164.50 170.72 HPP Peć Mlini 66.06 45.33 27.48 83.78 85.17 HPP Mostarsko Blato 102.07 83.04 56.1 0 108.11 136.40 WPP Mesihovina 0.00 0 0 103.50 165.98 TOTAL 1,823.14 1,539.87 1,287.40 2,088.40 2,703. 40

Table 32. Overview of realised generation of electricity in period 2015-2019 in EP HZ HB

FERK ACTIVITY REPORT FOR 2019 53

Independent Power Producers – Industrial Power Plants

Independent producer, according to the Law on Electricity in the Federation of Bosnia and Herzegovina, means a producer who does not perform the activity of electricity generation as a public service, and who owns his own facilities for electricity generation for sale on the market. In the territory of the Federation of BiH in 2019, the electricity activity generation as independent producers - industrial power plants is performed by two electricity entities that have a license to generate electricity from FERK, namely: "GLOBAL ISPAT KIL" d.o.o. Lukavac and "NATRON-HAYAT" d.o.o. Maglaj, which generates electricity in three generation facilities: Energana GIKIL (UNIT I and UNIT II), and Energana 1 and Energana 2, whose total installed capacity is 68.55 MW. The above two independent producers use the generated electricity in their industrial power plants primarily for their own needs, and any surplus electricity is sold to EP BiH at agreed prices in the quantities given in the following table:

Name of Inst. Projected annual generation capacity generation 2015 2016 2017 2018 2019 (kW) facility (MWh)

ENERGANA GIKIL 16,500 130,680 17,292.94 22,868.97 11,469.47 14,055.97 18,405.38 Unit I & Unit II

NATRON HAYAT Energana 1 52,050 336,480 4,057.77 8,020.27 9,857.02 3,388.97 2,410.49 Energana 2

Table 33. Realized electricity delivery in the Federation BIH from independent producers – industrial power plants for period 2015-2019

35.000,00

30.000,00

25.000,00

20.000,00

15.000,00

10.000,00

5.000,00

0,00 2015. 2016. 2017. 2018. 2019.

„GLOBAL ISPAT KIL“ d.o.o. Lukavac „NATRON-HAYAT“ d.o.o. Maglaj

Figure 3. Delivery of electricity surplus from independent producers in period 2015-2019

FERK ACTIVITY REPORT FOR 2019 54

Eligible Electricity Producers

In accordance with the provisions of the Law on Electricity in the Federation of Bosnia and Herzegovina, FERK grants to electricity generators, who use waste or renewable energy sources in an individual electricity generation facility in an economically appropriate manner, including a combined cycle of heat and electricity production, in accordance with environmental protection measures, the status of eligible producers. As of the end of 2019, 174 electricity entities have acquired the status of an eligible producer and they are listed in the following table: ELIGIBLE ELECTRICITY PRODUCERS (RES) in the Federation BiH Technical characteristics Date of issuance – No. Name of Licensee Name of RES&CoGen Facility Installed Est.annual. expiration of license capacity generation (kW) (MWh) JP Elektroprivreda BiH d.d. Sarajevo HPP "Una" 10,136.00 48,500.00 HPP "Krušnica" 460.00 1,600.00 HPP "Modrac" (49%) 2,000.00 11,980.00 1. 18.12.2012 31.12.2022 HPP "Bihać" 160.00 600.00 HPP "Snježnica" 500.00 1,000.00 HPP "Osanica" 1,084.00 4,750.00 HPP "Bogatići" (28%) 2,400.00 10,920.00 COMPREX d.o.o. Sarajevo HPP "Prusac 1" 632.00 4,536.00 2. 11.04.2012 10.04.2022 HPP "Mošćani" 769.00 3,787.0 0 3. MHE -V-I d.o.o. Vitez 21. 06.2012 20. 06.2022 HPP "Vitez 1" 1,200.00 6,088.00 4. Elektro test d.o.o. Sarajevo 25. 02.2013 24. 02.2023 SPP "Gornja Jošanica" 10.00 14.998 5. NSSN d.o.o. Mostar 14. 03.2013 13. 03.2023 SPP "Vrelo Radobolje" 8.00 8.92 6. "SU BAŠIĆ" d.o.o. Tešanj 26. 03.2013 25. 03.2023 SPP "SUBAŠIĆ 1" 12.50 15.548 "KARA -DRVO" d.o.o. Fojnica HPP "Pogledala" 690.00 2,285.00 7. 10.04.2013 09.04.2023 HPP "Grablje" 354.30 2,146.00 8. J.U. Centar "LOS ROSALES" Mostar 08. 05.2013 07. 05.2023 SPP "Los Rosales" 3.80 4.615 9. IN SOLAR d.o.o. Č apljina 18. 06.2013 17. 06.2023 SPP "IN SOLAR -TREBIŽAT" 10.00 11.50 10. SICON SAS d.o.o. Tuzla 30. 09.2013 29. 09.2023 SPP "SICON 1" 10.00 10.70 11. AMITEA d.o.o. Mostar 06.12.2013 05.12.2023. HPP "Trešanica T -4" 1,218.00 6,200.00 12. ECO ENERGY d.o.o. Gra čanica 26. 03.2014 25. 03.2024 HPP "Osanica 4" 630.00 2,583.00 13. SV Energija d.o.o. Tešanj 13. 05.2014 12. 05.2024. SPP "LEPENICA 1" 10.00 11.70 14. BIOTECH d.o.o. Busovača 21. 07.2014. 20. 07.2024. SPP "BIOTECH " 10.00 10.955 15. REMEDIA d.o.o. Tuzla 22. 08.2014 21. 08.2024 SPP "AHIMBA ŠIĆ I 1" 22.00 23.865 VESNA -S d.o.o. Bugojno HPP "Pršljanica 1" 200.00 1,245.00 16. 01.10.2014 30.09.2024 HPP "Pršljanica 2" 350.00 3,060.00 "EKO -SAN" d.o.o. Sarajevo SPP „O.Š. Meša Selimović “ 27.60 28.40 17. 08.12.2014 07.12.2024 SPP " Bijela ploča " 10.00 9.20 18. NINO -HA d.o.o. Doboj Jug 03. 02.2015 02. 02.2020 SPP "KONAK" 30.00 39.20 19. BEA d.o.o. Mekiš bb -Tešan j 14. 04.2015 13. 04.2025 SPP "BE.23 -1" 20.00 25.10 Mini solarna elektrana "SE VEDO 1", SPP "VEDO 1" 12.50 14.969 20. 07.05.2015 06.05.2025 owned by Elvedin Kantardžić 21. GRAND 99 d.o.o. Travnik 23. 06.2015 22. 06.2020 SPP "GRAND 99" 30.00 35.354 22. "VRBAS -ENERGIJA" d.o.o. Donji 23. 06.2015 24. 09.2024 HPP "Torlakovac" 470.00 2,200.00 Vakuf 23. Obrt "POLJOTRG", owned by 31. 08.2015 30. 08.2025 SPP "POLJOTRG" 23.00 31.15 Dženeta Bektaš Samostalna obrtnička radnja "SOL - SPP "BATIN" 22.00 30.23 24. 18.09.2015 17.09.2027 VES", owned by Veselko Penava 25. "ŠOKČEV IĆ" d.o.o. Orašje 15.10.2015 14.10.2020 SPP " BAZENI " 79.80 93.60 26. IGI SOLAR d.o.o. Čitluk 15.10.2015 14.10.2020 SPP " BLIZANCI 1" 150.00 201.00 27. MAHIR d.o.o. Visoko 13.11.2015 12.11.2025 SPP "MAHIR" 23.00 28.75 SE "PROSOLAR", owner Branimir SPP "PROSOLAR" 135.00 187.00 28. 13.11.2015 12.11.2025 Pav ličević 29. DOO "ŠNELKOM" 13.11.2015 12.11.2025 SPP "ŠNELKOM" 10.00 12.70

FERK ACTIVITY REPORT FOR 2019 55

ELIGIBLE ELECTRICITY PRODUCERS (RES) in the Federation BiH Technical characteristics Date of issuance – No. Name of Licensee Name of RES&CoGen Facility Installed Est.annual. expiration of license capacity generation (kW) (MWh) 30. ANNY -COMERCE d.o.o. Prozor - 24.11.2015 23.11.2025 SPP "SUNČANI LUG" 22.00 28.00 Rama 31. ENERGETIC -ELECTRONIC d.o.o. 18.12.2015 17.12.2020 SPP "ENERGETIC - 150.00 201.00 Čitluk ELECTRONIC" 32. COMEX d.o.o. Tešanj 29.01.2016 28.01.2021 SPP "Raduša" 23.00 28. 842 33. GOLD ENERGY d.o.o. Gradačac 29.01.2016 28.01.2021 SPP "FNE GOLD ENERGY -150" 150.00 256.00 Proizvodnja električ ne energije SE "SUHAČA" 22.00 35.30 34. "ELPRO" owned by Ž. Puđa, Suhača 29.01.2016 28.01.2028 bb, Livno 35. MAC ECO OIL d.o.o. Sarajevo 29.01.2016 28.01.2021 SPP "MAC ECO OIL" 148.50 229.00 "ESKIMO S 2" Travnik d.o.o. HPP "Podstin je" 420.00 1,672.00 HPP "Vileška" 344.00 1,929.00 36. 18.02.2016 17.02.2026 HPP "HUM" 648.00 3,213.00 HPP "DUBOKO" 400.00 2,790.00 Proizvodnja električne energije SPP "ĐURĐEVIK" 20.00 26.15 37. "ELCOM" Đurđevik, owner Izet 18.02.2016 17.02.2028 Jagodić SHPP Z agradačka d.o.o. Prozor - HPP "Zagradačka" 800.00 4,160.00 38. 18.02.2016 24.02.2026 Rama 39. ECCO -CRIMA d.o.o. Prozor 26.02.2016 24.02.2026 HPP "Crima" 1,270.00 7,160.00 40. „PRAHA“ d.o.o. Žepče 15.03.2016 14.03.2021 SPP "PRAHA 1 -150" 150.00 232.00 OD "V RTOVI HEĆO" Hadžići, owner SPP "Košćan 1" 10.00 16.00 41. 15.03.2016 14.03.2026 Zaim Hećo 42. "ŠAKOTA" d.o.o. 15.03.2016 14.03.2028 SPP "Šakota" 22.50 29.02 HIDROELEKTRANA BUK d.o.o. HPP "Buk" 280.00 1,200.00 43. 31.03.2016 31.05.2023 Široki Brijeg Pro izvodnja električne energije SPP "SM BRKA" 10.00 11.10 44. 15.04.2016 14.04.2026 "SM", owned by Semir Brko 45. ENERXIA d.o.o. Bugojno 28.04.2016 27.04.2021 SPP "ENERXIA" 135.00 181 .032 “GSL AUTO CENTAR” d.o.o. Gornji SPP "GSL" 23.00 24.20 46. 28.04.2016 27.04.2026 Vakuf -Uskoplje Proizvodnja električne energije SPP "MSE Orkan 1" 15.00 18. 375 47. "ORKAN 1" Živinice, owner Ramiz 06.05.2016 05.05.2028 Arslanović 48. "ĆANDRO", owned by Branka Ćurić 24.05.2016 23.05.2028 SPP "Zelenika 1" 22.00 33.20 AMI TEA -II d.o.o. Mostar HPP "Kraljuščica 1" 3,465.00 12,500.00 49. 24.05.2016 23.05.2021 HPP "Kraljuščica 2" 4,478.00 18,950.00 50. "BAZA" d.o.o. Tuzla 24.05.2016 23.05.2026 SPP "BAZA" 17.00 20 .197 "VELOVO KUĆIŠTE", owned by SPP "VILLA ANITA" 9.90 11.84 51. 07.06.2016 06.06.2028 Anita Ivanković - Lijanović 52. ECO -KW d.o.o. Kiseljak 15.06.2016 14.06.2021 SPP "Elur 1" 150.00 193.30 53. "SP ĆOŠKOVIĆ" d.o.o. 15.06.2016 14.06.2021 SPP "DOMALJEVAC" 30.00 34.50 Proizvodnja električne energije "SE SPP "DOLINA" 12.50 15.00 54. ELEKTRO NIK", owner Nezir 15.06.2016 14.06.2026 Prnjavorac "UMEL -DALEKOVODMONTAŽA" SPP "Umel -Dalekovodmontaža 22.80 29. 568 55. 15.06.2016 14.06.2028 d.o.o. 1" 56. PTP "ŠOLA" d.o.o. TOMISLAVGRAD 22.06.2016 21.06.2028 SPP "ŠOLA 1" 22.00 26.18 57. SE MAZOLJICE, owner Dragi Tiro 22.06.2016 21.06.2028 SPP "Mazoljice" 10.00 10.08 58. “GRANITEX” d.o.o. Čapljina 04.07.2016 03.07.2028 SPP "GRANITEX" 22.00 28.10 59. “PROSLAP” d.o.o. Prozor -Rama 11.07.2016 10.07.2021 SPP "Proslapsko sunce" 22.0 0 28.40 60. “SARKOP” d.o.o. Srebrenik 11.07.2016 10.07.2021 SPP "SARKOP" 150.00 195.00 61. “HERCEG” d.o.o. 11.07.2016 10.07.2021 SPP "HERCEG" 150.00 195.00 62. D.O.O. "SAMI PROMET" Visoko 11.07.2016 10.07.2021 SPP "SAMI PROMET 1" 30.00 36.63 63. “ELWOR K” d.o.o. Tuzla 20.07.2016 19.07.2021 SPP "ELWORK 1" 30.00 34.80 64. "SJAJ" Maglaj, d.o.o. 20.07.2016 19.07.2021 SPP "SJAJ" 23.00 26.90

FERK ACTIVITY REPORT FOR 2019 56

ELIGIBLE ELECTRICITY PRODUCERS (RES) in the Federation BiH Technical characteristics Date of issuance – No. Name of Licensee Name of RES&CoGen Facility Installed Est.annual. expiration of license capacity generation (kW) (MWh) LADANUŠIĆ ČISTOĆA d.o.o. SPP "LADANUŠIĆ" 10.00 12.60 65. 25.08.2016 24.08.2028 Rakitno -Posušje 66. "PAŽIN" d.o.o. Stolac 09.09.2016. 08.09.2021 SPP "Pažin" 132.50 207. 378 67. “ALIM” d.o.o. Visoko 09.09.2016 08.09.2021 SPP "ALIM" 30.00 43.42 Solarna foro naponska elektrana SPP "Gnječe 1" 23.00 27.268 68. "GNJEČE 1", owner Senad Batalević, 20.09.2016 19.09.2026 Klokotnica 69. “HENKOPROM” d.o.o. Žepče 07.10.2016 06.10.2021 SE "HENKO HE.1 -150" 122.00 141.00 70. “PRO -EL” d.o.o. Bugojno 07.10.2016 06.10.2021 HPP "Kordići" 760.00 3,780.00 71. SOLAR -ENERGY d.o.o. Čapljina 24.10.2016. 23.10.2021 SPP "Čapljina" 918.00 1,550.00 "EKO -ELEKTRON" d.o.o. Gornji HPP "Dubrava" 3,147.00 13,779. 00 72. 24.10.2016 23.10.2021 Vakuf -Uskoplje 73. TG -GRANIT d.o.o. Prozor -Rama 23. 11.2016 22.11.2021 SPP "Poljane" 135.00 187.00 74. FSE "Bljesak", owner Ivanka Sabljić 07.12.2016 06.12.2028 SPP "Bljesak" 22.00 31.50 75. “MHA ENERGOGROUP” d.o.o. 07.12.2016 06.12.2021 HPP "Trešanica T3" 2,915.00 12,060.00 76. "ČULE PROMET" d.o.o. Most ar 16.12.2016 15.12.2021 SPP "ČULE PROMET" 150.00 201.00 77. “CONRA” d.o.o. Tešanj 12.01.2017 11.01.2029 SPP "CO -23" 22.00 32.30 DOO "PETROL -P" Bihać 12.01.2017 11.01.2029 SPP "PETROL -P 2" 10.00 11. 881 78. 26.01.2017 25.01.2022 SPP "PETROL -P 1" 15. 00 18. 258 79. “HO Svjetlost” d.o.o. Doboj Jug 26.01.2017 25.01.2022. SPP "GAJ 1" 20.00 23.41 80. "Jaklići B&B" d.o.o. Prozor -Rama 26.01.2017 25.01.2022 SPP "Rama" 20.00 22.20 81. SAMELAY d.o.o. Tešanj 26.01.2017 25.01.2022 SPP "SAMELAY 1" 20.00 24.92 “ENERGONOVA” d.d. Sarajevo HPP "Čemernica" 500.00 2,100.00 HPP "Kaljani" 1,211.00 4,850.00 82. 13.02.2017 13.12.2026 SPP "MERKUR" 115.00 146. 916 SPP "KLAS CENTAR" 102.00 159. 675 SPP "Zlatka Vuković" 104.50 145. 279 DF GRADNJA d .o.o. Konjic 13.04.2020 HPP "Duboki potok" 808.00 3,581.00 83. 17.03.2017 13.04.2020 HPP "Veliki duboki potok" 418.00 1,890.00 84. "SUNCE", owned by Ana Kudić 10.04.2017 09.04.2029 SPP "Raštani" 10.00 10.19 85. “MiniWat” d.o.o. Travnik 24.04.2017 23.04 .2022 HPP "DOLAC" 585.00 2,272.00 86. "FAVORIT BH" d.o.o. Bihać 24.04.2017 23.04.2029 SPP "FAVORIT BH" 20.00 24 .808 DJELATNOST SLIČNA OBRTNIČKOJ SPP "SLAVINOVIĆI I" 6.48 7.50 87. - "SLAVINOVIĆI I", owner Selver 24.04.2017 23.04.2029 Memić 88. “TURBINA” d.o.o. Jajce 19.05.2017 18.05.2022 HPP "Brestavni potok" 980.00 3,450.00 89. “PLIVA” d.o.o. Jajce 19.05.2017 18.05.2022 SPP "PLIVA" 150.00 143.00 90. "PERO" Zenica d.o.o. 19.05.2017 18.05.2022 SPP "PERO 1" 119.00 139.07 91. “ING -EKO” d.o.o. Prozor -Rama 19.05.2017 10.07.2027 HPP "Duščica" 515.00 2,404.00 92. MAXIMA IST d.o.o. Mostar 03.07.2017 02.07.2022 SPP "STOLAC -A" 150.00 201. 938 93. "EKO ENERGIJA" d.o.o. Kalesija 03.07.2017 02.07.2027 SPP “Sportska hala Kalesija” 120.00 130.30 “MFS TRADE” d.o.o. Duje - SPP “DUJE” 23.00 25.30 94. 26.07.2017 25.07.2022 Klokotnica "BIČAKČIĆ" d.o.o. Sarajevo SPP "BIČAKČIĆ 1" 10.00 14 .696 95. 29.08.2017 20.09.2027 SPP "Bičakčić 3 Eldin" 10.00 12.05 “EKO -ENERGY” d.o.o. Tešanj HPP “Vareš” 980.00 3,850 .00 96. 29.08.2017 23.04.2022 HPP "PODJEZERA" 650.00 5,500.00 Solarna foronaponska elektrana SPP "BARE" 22.00 26.80 97. 29.08.2017 28.08.2029 "BARE", owned by Marko Markešić 98. “BROTIS” d.o.o. Čitluk 14.09.2017 13.09.2029 SPP "BROTIS" 22.00 30.00 99. “INTER” d.o.o. Tešanj 24.10.2017. 23.10.2022 SPP "INTER IN 23 -1" 20.00 24.30 Solarna fotonaponska elektrana SPP "Solar -Rama" 135.00 189.00 100. "SOLAR -RAMA", owned by Slavko 07.11.2017 06.11.2027 Žilić

FERK ACTIVITY REPORT FOR 2019 57

ELIGIBLE ELECTRICITY PRODUCERS (RES) in the Federation BiH Technical characteristics Date of issuance – No. Name of Licensee Name of RES&CoGen Facility Installed Est.annual. expiration of license capacity generation (kW) (MWh) "MIRNA LUKA", owned by Željko SPP “MIRNA LUKA” 22.00 31.10 101. 07.11.2017 07.11.2017 Kozina 102 D.O.O. "KALIM -PROFILE" Teš anj 15.01.2018 14.01.2028 SPP “KALIM K23 -1” 18.00 25.70 103. "EKO ENERGETIKA" d.o.o. Sarajevo 15.01.2018 10.06.2020 SPP “Dragovići 1” 30.00 34.50 Djelatnost srodna obrtničkoj – SPP "PAPE" 22.00 26.138 104. Proizvodnja električne 15.01.2018 14.01.2030 energije"PAPE", owner Mirsad Bašić 105. "SUŠA -COMMERCE" d.o.o. Visoko 02.02.2018 01.02.2028 WPP "Moštre 1" 300.00 1,080.00 Solarna elektrana "ENERGO SPP "ENERGO SOLAR" 22.00 25.00 106. 02.02.2018 01.02.2030 SOLAR", owned by Nikola Marić 107. “EKO -REM” d.o.o. Sarajevo 27.02.2018 26.02.2023 HPP "Kosova" 500.00 2,125.00 108. SolarMax d.o.o. Mostar 15.03.2018 20.05.2028 SPP "STOLAC I" 150.00 200. 757 109. "KALIM" d.o.o. Tešanj 28.03.2018 27.03.2028 SPP "KALIM K23 -2" 20.00 24.00 110. MK GROUP d.o.o. 28.03.2018 09.04.2028 SPP "MK HODOVO 1" 150.00 185 .409 Solarna elekt rana "K -SOLAR", SPP "Gmići 3" 22.00 29.50 111. 14.05.2018 13.05.2030 owned by Petar Kudić Solarna elektrana "SOLAR -B", owner SPP "Gmići 2" 22.00 29.50 112. 14.05.2018 13.05.2030 Ante Barišić “INTRADE ENERGIJA” d.o.o. HPP " Botun" 1,043.00 3,881.00 Sarajevo HPP "Jezernica" 1,294.00 4,092.00 113. 28.05.2018 20.03.2021 HPP "Majdan" 2,635.00 11,124.00 HPP "Mujakovići" 1,536.00 8,181.00 "ELEKTRO GRUPA" d.d. Gornji HPP "VOLJEVAC" 950.00 4,700.00 114. 11.06.2018 10.06.2023 Vakuf -Uskoplje 115. “G.M.C. BiH “d.o.o. Orašje 11.06.2018 22.07.2028 SPP “G.M.C. BIH“ 32.00 58.70 116. JP "VIK" d.o.o. Zenica 11.06.2018 10.06.2028 HPP "Čajdraš" 485.00 3,633.00 "SUNČANA LIVADA" owned by Stipo SPP "ZGONE 4" 22.50 29. 041 117. 11.06.2018 10.06.2030 Leovac "SU NČANA LIVADA" owned by Stipo SPP "ZGONE 5" 22.50 29. 704 118. 11.06.2018 10.06.2030 Leovac 119. “PI -PI” d.o.o. Visoko 26.06.2018 25.06.2023 SPP "PI -PI -150" 149.00 170.00 “ELGRAD” d.o.o. Jajce HPP "Bila Voda" 55.00 342.00 HPP "G lasinac" 110.00 737.00 120. 17.07.2018 16.07.2028 HPP "Poljanski potok - 55.00 350.00 Grabantski potok" HPP Kasumi 55.00 383.00 ENERGY TRADE d.o.o. Usora SPP "ENERGY 1" 127.00 164.84 121. 17.07.2018 29.09.2028 SPP "IVEX" 25.00 31. 977 SPP "IVEX 2" 125.00 164.84 122. “GRID BH” d.o.o. Sarajevo 27.08.2018 13.01.2025 HPP "Mujada" 1,281.00 7,586.00 "ELEKTRO -SOLAR", owner Fehim SPP „F.S. Sanski Most " 20.00 27. 141 123. 25.09.2018 24.09.2028 Suljanović 124. PTP "ŠOLA" d.o.o. TOMISLAVGRAD 25.09.2018 24.09.2030 SPP "ŠOLA 2" 22.00 24.50 125. “ASCOM” d.o.o. Tešanj 04.10.2018 23.10.2028 SPP "ASCOM 1" 10.00 15. 264 126. “GROHS H&G” d.o.o. Sarajevo 24.10.2018 22.12.2028 SPP "PRETIS" 148.50 202. 219 127. "Veliko sunce" d.o.o. 27.11.2018 05.12.2028 SPP "VELIKO SUNCE 1" 150.00 188. 327 128. Fotonaponska elektrana GAMA 27.11.2018 26.11.2030 SPP "GAMA" 22.42 25. 80 129. "N S S N" d.o.o. Mostar 27.11.2018 26.11.2030 SPP "VRELO RADOBOLJE 2" 12.00 14.50 HEET d.o.o. Prozor -Rama WPP "Proslap 1" 20.00 61.00 WPP "Proslap 2" 20.00 61.00 130. 10.12.2018 09.12.2023 WPP "Proslap 3" 20.00 61.00 WPP "Proslap 4" 20.00 61.00 WPP "Proslap 5" 20.00 61.00 131. "TIK" d.o.o. Jelah bb -Teš anj 10.12.2018 09.12.2023 SPP "TIK 1" 127.00 153.10

FERK ACTIVITY REPORT FOR 2019 58

ELIGIBLE ELECTRICITY PRODUCERS (RES) in the Federation BiH Technical characteristics Date of issuance – No. Name of Licensee Name of RES&CoGen Facility Installed Est.annual. expiration of license capacity generation (kW) (MWh) SOR “FOTONAPONSKA SPP "NEVIĆ POLJE 1" 22.07 28.03 132. ELEKTRANA-NEVIĆ POLJE 1.” 21.01.2019 20.01.2029 owned by Robert Begić

JP "Elektroprivreda HZ HB" d.d. WPP "Mesihovina" 50,600.00 165.170.0 133. 27.02.2019 31.12.2022 0 Mostar

134. d.o.o. "BH STRUJA" Cazin 14.03.2019 13.03.2024 SPP "KOPRIVNA" 140.00 163. 267

GP TOMING d.o.o. Grude SPP "KRENICA 1" 150.00 291.62

SPP "KRENICA 2" 150.00 291.62

SPP "KRENICA 3" 150.00 291.62

SPP "KRENICA 4" 150.00 293.63

SPP "KRENICA 5" 150.00 293.63

SPP "KRENICA 6" 150.00 293.63

SPP "KRENICA 7" 150.00 293.63

SPP "KRENICA 8" 150.00 29 3.63

SPP "KRENICA 9" 150.00 293.63

SPP "KRENICA 10" 150.00 293.63

SPP "KRENICA 11" 150.00 293.63

SPP "HODOVO 1" 150.00 291.62

135. 26.04.2019 02.12.2027 SPP "HODOVO 2" 150.00 291.62

SPP "HODOVO 3" 150.00 291.62

SPP "HODOVO 4" 150.00 291.62

SPP "HODOVO 5" 150.00 291.62

SPP "HODOVO 6" 150.00 291.62

SPP "HODOVO 7" 150.00 291.62

SPP "HODOVO 8" 150.00 291.62

SPP "HODOVO 9" 150.00 291.62

SPP "HODOVO 10" 150.00 291.62

SPP "HODOVO 11" 150.00 291.62

SPP "HODOVO 12" 150 .00 291.62

SPP "HODOVO 13" 150.00 291.62

SPP "HODOVO 14" 150.00 291.62

"BRATSTVO" d.d. Gornji Vakuf- SPP "TELE-COM 1" 138.00 145.00 136. 26.04.2019 25.06.2029 Uskoplje

FERK ACTIVITY REPORT FOR 2019 59

ELIGIBLE ELECTRICITY PRODUCERS (RES) in the Federation BiH Technical characteristics Date of issuance – No. Name of Licensee Name of RES&CoGen Facility Installed Est.annual. expiration of license capacity generation (kW) (MWh) 137. “SOLIS” d.o.o. Lukavac 26.04.2019 21.08.2029 SPP "SOLIS 01" 132.00 131 .935

138. “ALFE-MI” d.o.o. Živinice 14.05.2019 13.05.2029 SPP "ALFE MI" 20.00 22.50

139. “FEKO-ENERGY” d.o.o. Zenica 07.06.2019 13.09.2027 HPP Bistričak 990.00 4,350.00

140. "KAMENJAK-COP" d.o.o. 21.06.2019 20.60.2024 HPP "Zaseljački potok" 339.00 1,160.00

“ESCO ECO ENERGIJA” d.o.o. SPP "Gradska toplana Livno" 78.00 91.62 141. 21.06.2019 20.06.2029 Livno

OD "SE SOLAR 1-2" owned by SPP "SOLAR 1" 133.20 160.00 142. 12.07.2019 28.10.2021 Mirsad Hrbat, Hadžići

143. ENERGOSOL d.o.o. 12.07.2019 22.07.2020 SPP "PJEŠIVAC 1" 150.00 221.00

144. "KUDIĆ", owner Mile Kudić 22.08.2019 21.08.2031 SPP "KUDIĆ" 22.00 27.00

145. “G-TANK” d.o.o. Vitez 22.08.2019 21.08.2024 HPP "LAŠVA" 980.00 5,560.00

"S elektro" d.o.o. BOSANSKI SPP "KRNJEUŠA" 150.00 187.50 146. 22.08.2019 21.08.2024 PETROVAC

SOLIK d.o.o. SPP "PROZOR" 135.00 230.00 147. 22.08.2019 26.08.2028 SPP "Solik" 3.00 5.90

“EMY” d.o.o. Zenica SPP "SE EMY 2" 30.00 39.60

148. 10.09.2019 09.09.2029 SPP "SE EMY 30 kW Žepče" 30.00 32.80

HPP "Pepelari" 448.00 3, 285.00 36,000.00 110,000.0 149. F.L. WIND d.o.o. TOMISLAVGRAD 10.09.2019 09.09.2024 WPP "Jelovača" 0 “HE Energy” d.o.o. Stolac SPP "HE ENERGY 1" 142.00 218. 649 150. 20.09.2019 05.03.2029 SPP "HE ENERGY 2" 150.00 232 .137

"SOLAR" Ustikolina - owner Hasib SPP "MODRAN" 20.00 26.70 151. 20.09.2019 19.09.2029 Duranović

152. EnergEtica d.o.o. Sarajevo 20.09.2019 19.09.2024 SPP "ENERGETICA" 150.00 222.00

ENERGIJA HODOVO d.o.o. SPP "HODOVO SOLAR 1" 150.00 232. 000 153. Sarajevo 20.09.2019 19.09.2024 SPP "ENERGIJA HODOVO 2" 150.00 232. 000

154. MARSSEL d.o.o. Mostar 20.09.2019 19.09.2024 SPP "MARSSEL" 150.00 246.00

155. "BIČAKČIĆ SOLAR" d.o.o. 20.09.2019 19.09.2024 SPP "Bičakčić 4" 30.00 51.94

156. “VG-MONTING” d.o.o. Vitez 20.09.2019 19.09.2031 SPP "VG-MONTING" 22.50 27.22

157. D.O.O. "ZAMCOMERC" Fojnica 20.09.2019 19.09.2029 SPP "ZAMCOMERC" 10.00 12.30

158. “NEDER” d.o.o. Tešanj 31.10.2019 30.10.2029 SPP "NEDER" 23.00 31.70

159. 31.10.2019 19.07.2021 HPP "Jelići" 1,350.00 6,310.00

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ELIGIBLE ELECTRICITY PRODUCERS (RES) in the Federation BiH Technical characteristics Date of issuance – No. Name of Licensee Name of RES&CoGen Facility Installed Est.annual. expiration of license capacity generation (kW) (MWh) “Inter-Energo” d.o.o. Gornji Vakuf- HPP "Ružnovac" 992.00 4,799.00 Uskoplje HPP "Derala" 234.00 1,010.00

HPP "Sastavci" 704.00 3,150.00

HPP "Duboki Potok" 818. 30 4,058.00

“ENERGY” d.o.o. SPP "ENERGY" 149.00 253.00

160. 31.10.2019 27.04.2021 SPP "ENERGY 2" 23.00 30.75

SPP "ENERGY 3" 23.00 30.80

"BAHEN-GRADNJA" d.o.o. SPP "BUJACI" 149.75 224.30 161. 28.11.2019 27.11.2029 Sarajevo

"SFE INTERQUALITY", owned by SPP "INTERQUALITY" 22.00 26.50 162. 28.11.2019 28.08.2029 Zineta Ćemerlić and Ivan Babić

163. “ILMA” d.o.o. Tešanj 28.11.2019 27.11.2024 SPP "ILMA" 127.00 158.90

“RSV ENERGY” d.o.o. BOSANSKI SPP "RSV 1" 150.00 187.50 164. 28.11.2019 27.11.2024 PETROVAC

"SUNČANA LIVADA" owned by SPP "ZGONE 2" 22 .50 34.21 165. 28.11.2019 27.11.2031 Stipo Leovac

166. OIL-AC d.o.o. Mostar 13.12.2019 12.12.2024 SPP "OIL-AC 1" 150.00 207.00

167. L O W R E d.o.o. Međugorje Čitluk 13.12.2019 12.12.2024 SPP "LOWRE" 150.00 298.00

168. "KAMEN STIL" DOO TEŠANJ 13.12.2019 12.12.2024 SPP "KS 150-1" 150.00 169.00

169. “KOMING” d.o.o. Kakanj 13.12.2019 12.12.2031 SPP "KOMING" 22.00 26.00

“EBH” d.o.o. Sarajevo HPP "ČARDAK" 945.00 4,514.00

HPP "RUJEVICA-UŠĆE" 714.00 2,602.00 170. 13.12.2019 21.01.2029 HPP "BOTAŠNICA-UŠĆE" 921.00 3,775.00

HPP "Kamenica" 778.00 2,655.00

171. BV SUNCE d.o.o. 13.12.2019 12.12.2024 SPP "BV SUNCE 1" 150.00 250.00

172. “BL COMMERCE” d.o.o. Sarajevo 13.12.2019 12.12.2024 SPP "BREGAVA" 149.00 240.00

173. “BIOENERGI” d.o.o. Vitez 13.12.2019 12.12.2024 HPP "Ivančica" 497.00 1,817.00

“ANTONIO COMMERCE” d.o.o. SPP "ANTONIO COMMERCE 150.00 211.00 174. 13.12.2019 12.12.2024 Mostar 1"

Table 34. List of electricity producers that acquired eligible producer’s status by FERK’s decision up to 31 December 2020

Looking at Table 34 it can be concluded that eligible producers in the Federation of BiH generate electricity in 257 plants for the use of RES and CoGen, namely: 64 hydropower plants, 7 small distribution hydropower plants owned by EP BiH, 178 solar power plants and 8 wind farms.

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Table 35 shows the number of constructed RES and CoGen plants, with total installed capacity and projected annual electricity generation classified by type of technology, where solar power plants are specifically classified according to installed capacity. There are 36 micro-producers from Article 27 of the Law on the Usage of Renewable Energy Sources and Efficient Cogeneration, of which 22 are rooftop designs and 14 are stand-alone plants.

Number of RES Total installed Projected electricity Type of RES and CoGen Plant and CoGen Plants capacity (kW) generation (MWh)

smallHPP 64 75,136.60 322,749.00

≥23 kW micro producers 36 687.10 886.60

≥ 23 kW micro plants 44 700.37 866.93 SPP 23 kW - 150 kW 96 12,115.35 18,699.73

150 kW – 1 MW 2 1,915.50 2,687.00

Small HPP owned by EP BiH 7 22,340.00 79,350.00

WPP 8 87,000.00 276,555.00

Landfill gas* (1) (298.00) 0.00

Total 257 199.894,92 701,794.26

Table 35. Overview of constructed plants depending on technology type in the Federation of BiH *plant not in function

Type of RES and CoGen Plant 2015 (MWh) 2016 (MWh) 2017 (MWh) 2018 (MWh) 2019 (MWh)

Small HPP 88,170.16 144,146.49 133,785.88 168,377.43 172,377.10 SPP 5,221.05 11,757.98 15,834.01 15,283.46 22,040.20 Small HPP owned by EP BiH 59,431.41 68,991.03 60,378.46 63,461.20 62,518.47 WPP 29.28 34.00 27.95 103,539.544 199,639.010 Total 152,851.9 224,929.5 210,026.3 350,661.63 456,574.78 Table 36. Overview of power generation from RES and CoGen plants depending on technology type in the Federation BiH for period 2015-2019

RES and CoGen plants are connected to the distribution network of one of the two DSOs in the Federation of BiH (EP BiH, or EP HZ HB). Based on the Rulebook on Reporting for Licensees Performing Power Supply II Tier, Independent and Eligible Producers and Operator for RES and CoGen, eligible producers provided FERK with information related to the realized generation of electricity from RES plants. Based on a detailed analysis, an overview of electricity generation from the RES and CoGen plant for the period from 2015 to 2019 is given in Table 36.

FERK ACTIVITY REPORT FOR 2019 62

If we take into account the generation of electricity from RES and CoGen plants that are part of EP BiH (distribution power plants), an overview of the realized electricity generation for all eligible customers is given in Table 37 for the period from 2015 to 2019.

Power Generation (MWh) 2015 2016 2017 2018 2019

Electricity producers + distributed power 152,851.9 224,929.5 210,026.3 350,661.63 456,574.78 plants EP BiH

Increase/decrease in power generation in 47.16 -6.63 66.97 30.20 relation to previous year (%)

Table 37. Overview of electricity generation in the Federation of BiH from the RES and CoGen plants in the period from 2015 to 2019

Realization of Power Balance in the Federation of BiH The realized total electricity generation in the Federation of BiH in 2019 amounted to 8,986.07 GWh, of which 4,527.31 GWh was generated in thermal power plants, i.e. 50.38% of the total electricity generation in the Federation of BiH. In large hydro power plants, generation was realized in the amount of 3,981.37 GWh, i.e. 44.31% of total electricity generation in the Federation of BiH, and in small HPPs owned by EP BiH in the amount of 62.52 GWh, i.e. 0.70% of total generation in the Federation of BiH. In 2019, wind power plants generated 199.64 GWh, or 2.22% of total production in the Federation of BiH. Generation of independent producers - industrial power plants was realized in the amount of 20.82 GWh, i.e. 0.23% of the total electricity generation in the Federation of BiH, and the generation of solar power plants and small hydro power plants was realized in the amount of 194.41 GWh, i.e. 2.16 % of total electricity generation in the Federation of BiH.

Share of individual sources in Generation Facility 2019 (GWh) total electricity generation in 2019 (%) Thermal Power Plant 4,527.31 50.38 Hydropower Plant 3,981.37 44.31 Wind Power Plant 199.64 2.22 Small HPP in EPBIH 62.52 0.70 Independent producers – industrial power plants 20.82 0.23 SPP and small HPPs 194.41 2.16 TOTAL 8,986.07 100.00

Table 38. Realized electricity generation in the Federation of BiH in 2019

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The realized generation of electricity in the period from 2015 to 2019 in the Federation of BiH is shown in the following table:

2015 2016 2017 2018 2019 Generation Source (GWh) (GWh) (GWh) (GWh) (GWh) 1 2 3 4 5 HYDRO POWER PLANTS 3,259.42 2,935.27 2,228,81 3,518.50 3,981.37 THERMAL POWER PLANTS 5,413.40 5,792.01 6,007.23 5,648.33 4,527.31

WIND POWER PLANTS 0 0 0 103.5 199.64

SMALL HPPs in EPBIH 59.78 68.99 60.38 63.46 62.52

SPP and small HPPs 93.06 155.94 149.64 83.7 194.41 Independent pro ducers -industrial power plants 21.35 30.89 21.33 17.44 20.82 TOTAL 8,847.01 8,983.10 8,467.39 9,534.93 8,986.07

Table 39. Review of realized electricity generation in the period 2015-2019 in the Federation of BiH

FERK ACTIVITY REPORT FOR 2019 64

Power Distribution

The distribution system consists of power facilities (plants and lines) of low (0.4 kV) and medium voltage (35 kV, 20 kV and 10 kV) through which electricity is distributed. The power entity that has a license to perform distribution activities, i.e. DSO, is responsible for the operation, management, maintenance, construction and development of the distribution system. The Law on Electricity in the Federation of Bosnia and Herzegovina stipulates that the DSO is a legal entity that performs distribution activities independently of other electricity activities. In 2019, the establishment of DSOs as separate legal entities was still not completed. The activity of power distribution continues to be performed by DSOs in two public electricity companies - FERK licensees for power distribution. In 2019, a draft license for electricity distribution for EP HZ HB was adopted with amended conditions of the license, which are harmonized with the provisions of the Law on Electricity in the Federation of BiH and the Rulebook on Licensing. The power distribution license for EP BiH will be subject to changes in the coming period, while the final changes to both licenses will depend on the legal unbundling of DSOs as well as on the gradual adoption of regulations for the restructuring of the electricity sector. In 2019, the activity of electricity distribution in the Federation of BiH was performed within two public electricity companies, as follows: EP BiH, in the branches of electricity distribution: Bihać, Mostar, Sarajevo, Tuzla and Zenica; EP HZ HB, in the distribution areas: Jug, Centar and Sjever.

Power Facilities of EP BiH

Power Facilities Unit 2015 2016 2017 2018 2019

Total number of TS 35/10 (20) kV Pcs. 84 82 82 80 80 Total number of TS 10 (20) /0.4 kV Pcs. 7530 7628 7680 7742 7768 Medium voltage 35 kV network - overhead lines km 719 667 668 668 667 Medium voltage 35 kV network - underground lines km 141 120 126 126 130 MV 35 TOTAL km 860 787 794 794 797 Medium voltage 10 (20) kV network - overhead lines km 5974 5876 5811 5789 5793 Medium voltage 10 (20) kV network - underground lines km 2424 2554 2572 2630 2673 MV 10 (20) TOTAL km 8398 8430 8348 8419 8466 Low voltage 0.4 kV network - overhead lines km 25805 26232 26197 24137 2 24577 Low voltage 0.4 kV network - underground lines km 2954 3443 3524 3538 3690 LV 0.4 kV TOTAL km 28759 29675 29722 27675 28267

Table 40. Data on power facilities (substations and distribution network) for EP BiH for the period 2015-2019

2 In order to harmonize the data with the actual situation in the field, there was a significant difference in the data for 2018, which correspond to the actual data from the database of distribution power facilities (DEEO database).

FERK ACTIVITY REPORT FOR 2019 65

Power Facilities EP HZ HB

Power Facilities Unit 2015 2016 2017 2018 2019

Total number of TS 35/10 (20) kV Pcs. 17 18 18 18 19

Total number of TS 10 (20) /0.4 kV Pcs. 3613 3642 3677 3692 3713 Medium voltage 35 kV network - overhead lines km 291 291 291 286 286 Medium voltage 35 kV network - underground lines km 4 5 6 6 9 MV 35 TOTAL km 295 296 297 292 295 Medium voltage 10 (20) kV network - overhead lines km 3188 3207 3211 3229 3244 Medium voltage 10 (20) kV network - underground lines km 872 901 940 905 932 MV 10 (20) TOTAL km 4060 4108 4150 4134 4176 Low voltage 0.4 kV network - overhead lines km 7185 7247 7337 7427 7499 Low voltage 0.4 kV network - underground lines km 750 773 789 800 820 LV 0.4 kV TOTAL km 7935 8020 8125 8227 8319

Table 41. Data on power facilities (substations and distribution network) for EP HZ HB for the period 2015-2019

Sum of power facilities in the Federation of BiH

Power facilities Unit 2015 2016 2017 2018 2019

Total number of TS 35/10 (20) kV pcs. 101 100 100 98 99 Total number of TS 10 (20) /0.4 kV Pcs. 11143 11270 11357 11434 11481 Medium voltage 35 kV network - overhead lines km 1010 958 959 954 953 Medium voltage 35 kV network - underground lines km 145 125 132 132 139 SN 35 TOTAL km 1155 1083 1091 1086 1092 Medium voltage 10 (20) kV network - overhead lines km 9162 9083 9022 9018 9037 Medium voltage 10 (20) kV network - underground lines km 3296 3455 3512 3535 3605 SN 10 (20) TOTAL km 12458 12538 12498 12553 12642 Low voltage 0.4 kV network - overhead lines km 32990 33479 33534 31564 32076 Low voltage 0.4 kV network - underground lines km 3704 4216 4313 4338 4510 LV 0.4 kV TOTAL km 36694 37695 37847 35902 36586

Table 42. Data on power facilities (substations and distribution network) for the Federation of BiH for the period 2015-2019

In 2019, EP BiH has built 592 km of new low voltage network, 3 km of 35 kV network, 47 km of 10 (20) kV network and 26 new TS 10 (20)/0.4 kV.

FERK ACTIVITY REPORT FOR 2019 66

EP HZ HB, in 2019 has built 92 km of low voltage network, 3 km 35 kV network, 42 km 10 (20) kV network, 1 new TS 35/10(20) kV and 21 new TS 10(20)/0, 4 kV. During 2019, the maximum delivery of electricity in January (424.05 GWh) was recorded on the distribution network of EP BiH, and the total annual electricity consumption of customers in EP BiH amounted to 4,301.11 GWh.

EP BiH

Consump public 35 kV Voltage level Number of customers tion lightning 7% (GWh) 2% 35 kV 63 296.564 commercials 10(20) 21% kV… 10(20) kV 936 880.455 households 701,439 2,143.050 households 50% commercials 64,695 897.886 public lightning 4,586 83.151

Total 771,719 4,301.106 Figure 4. Structure of electricity consumption of customers on the distribution network of EP BiH for 2019 (GWh)

Table 43. Data on the number of customers and consumption in 2019 by consumption categories for EP BiH

450 400 350 424,05 379,43 384,52 300 366,39 352,59 358,46 351,13 354,77 363,97 250 343,34 346,07 340,43 200 150 100 50 0 I II III IV V VI VII VIII IX X XI XII

Figure 5. Chart of electricity supply (GWh) to customers on the distribution network in EP BiH by months in 2019

During 2019, the maximum electricity supply (125.27 GWh) on the distribution network of EP HZ HB was recorded in January, and the total annual electricity consumption of customers in EP HZ HB amounted to 1,264.50 GWh.

FERK ACTIVITY REPORT FOR 2019 67

EP HZ HB Number of Voltage level Consumption (GWh) customers public lightning; 2% 10(20 ) kV; 21% 35 kV commercials 23% 10(20) kV 225 261.705 households 179,132 688.250 kućanstva 54% commercials 15,319 286.912 public lightning 1,844 27.635

Total 196,520 1,264.502 Figure 6. Electricity consumption structure of customers in the distribution network of EP HZ HB for 2019 (GWh)

Table 44. Data on the number of customers and consumption in 2019 by consumption categories for EP HZ HB

150

100 125,275 109,039 111,869 116,287 106,028 104,207 100,314 100,686 98,636 97,726 99,724 100,641 50

0 I II III IV V VI VII VIII IX X XI XII

Figure 7. Chart of electricity supply (GWh) to customers on the distribution network in EP HZ HB by months in 2019

Total consumption in distribution network in the federation of BiH in 2019 Number of Consumption Voltage level public 35 kV customers (GWh) lightning 5% 35 kV 63 296,564 2% commercials 10(20) kV; 10(20) kV 1.161 1.142,160 21% 21% households 880.571 2.831,300 households commercials 80.014 1.184,798 51% 110,786 public lightning 6.430 Total 968.239 5.565,608 Figure 8. Structure of electricity consumption of customers on the distribution network in the Federation of BiH for 2019 (GWh)

Table 45. Data on the number of customers and consumption in 2019 by categories of consumption for the territory of the Federation of BiH on the distribution network

FERK ACTIVITY REPORT FOR 2019 68

Electricity losses on the distribution network in 2019 for EP BiH were realized in the amount of 373,990,298 kWh, or expressed as a percentage 7.56%. Electricity losses in the distribution network in 2019 for EP HZ HB were realized in the amount of 139,904,183 kWh, or expressed as a percentage 9.15%.

EP BiH

2015 2016 2017 2018 2019

Losses [GWh] 408.653 414.052 402.400 375.206 373.990

Share [%] 8.66 8.61 8.18 7.65 7.56

Table 46. Data on electricity losses on the distribution network of EP BiH

EP HZ HB

2015. 2016. 2017. 2018. 2019.

Losses [GWh] 167,007 154,880 150,723 139,872 139,904

Share [%] 11,09 10,32 9,97 9,30 9,15

Table 47. Data on electricity losses on the distribution network of EP HZ HB

Total electricity losses on distribution network in 2019 on the territory of the Federation of BiH were realized in the amount of 513,894,481 kWh, or expressed as a percentage 7.94%.

Total losses in distribution networks in the Federation of BiH

2015. 2016. 2017. 2018. 2019.

Losses [GWh] 575,660 568,932 553,123 515,078 513,894

Share [%] 9,24 9,02 8,60 8,04 7,94

Table 48 Data on electricity losses in distribution network in the Federation of BiH

Parameters of quality of electricity supply On the level of Association of Energy Regulators, indicators that describe statistical number of interruptions and average duration of interruption per customer, that lasted longer than three minutes, have been standardized as follows: SAIDI or System Average Interruption Duration Index and SAIFI or System Average Interruption Frequency Index ).

For DSOs in the Federation of BiH these parameters on medium voltage level in 2019 were as follows: 1) EP BiH: SAIDI – 651.00 minute/customer,

FERK ACTIVITY REPORT FOR 2019 69

SAIFI – 7.02 interruptions per customer on medium voltage level;

2) EP HZ HB: SAIDI – 694.00 minute/customer SAIFI – 10.90 interruptions per customer on medium voltage level.

Specified quality parameters for the last ten years for both public power utilities are as shown in the below figures:

900,00

800,00

700,00

600,00

500,00

400,00

300,00

200,00

100,00

0,00 2015 2016 2017 2018 2019

EP BIH EP HZ HB

Figure 9. Index of electricity supply quality SAIDI for two public power utilities in the period 2015 - 2019

16,00

12,00

8,00

4,00

0,00 2015 2016 2017 2018 2019

EP BIH EP HZ HB

Figure 10. Index of electricity supply quality SAIFI for two public power utilities in the period 2015 – 2019

FERK ACTIVITY REPORT FOR 2019 70

Above mentioned indicators of supply continuity or reliability (together with technical quality and commercial quality) represent one of the elements of electricity quality that shows the capability of distribution network to continuously fulfil electricity customer needs. The issue of electricity quality is of exceptional importance in the modern trends in power sector, especially in power distribution. Electricity quality influences the operational quality and quality of life in general. Electricity customers are very sensitive on all aspects of quality services and especially on reliability in electricity supply. As law has regulated in the Federation BiH the basic guidelines of functioning, development and monitoring of electricity market, with further development of electricity market the issue of technical as well as commercial quality of electricity will be of special importance in regulation relations between all participants in power sector. FERK continuously, together with other relevant participants in power sector, works on monitoring and analysis of respective practice and regulations from this field. Specified analysis should result in adoption of rulebook on electricity supply quality with the obligation for monitoring and reporting on all elements of the electricity quality for licensees. In 2019, FERK has, together with other regulatory commissions in BIH, participated in the design of 7th CEER Benchmarking Report or the activity of periodic reporting conducted by CEER, where parameters are already defined for the evaluation of level reached in electricity supply quality.

Power Supply – I Tier License

Electricity supply to customers is an activity independent of the distribution activity and consist of: purchase for sale of electricity to customers, including resale of electricity, processing of billing determinants for electricity supply, billing of electricity consumption, billing to customers and billing for each billing point of electricity consumption. Power Supply License – I Tier is issued to applicants i.e. power entities for the supply of electricity to end customers as a public supplier. The decision of the Government of the Federation of BiH grants the status of a public supplier to two public electricity companies and determines the obligation to provide public/universal service and the service of a supplier of last resort in their area of operation. Also, this decision stipulates for power supply I tier licensees that the public supplier has an obligation starting from 01.01.2015 to provide a universal electricity supply service of standard quality at economically justified, easily and clearly comparable and transparent prices to all eligible electricity customers from the category of households, small businesses and commercial customers (universal service users), who have not chosen their supplier on the market. All other eligible customers, who are not entitled to a universal supply service and have not chosen their supplier, are supplied by the public supplier on market principles. Power entities regularly provide information on their website within information centres for customers, checking account balances, toll-free telephones, e-invoice, calculator or catalogue, market information for customers, as well as other service information, data, business reports, operation news, etc. Although the process of functional unbundling of public electricity companies in 2019 has not yet been completed, the power supply I Tier license has been amended for JP Elektroprivreda HZ HB d.d. Mostar, and it is harmonized with the provisions of the Law on Electricity in the Federation of BiH and the Rulebook for Licensing, while the license for JP Elektroprivreda BiH d.d. - Sarajevo will be amended in the coming period.

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Public supply in the scope of universal service An overview of electricity consumption of customers from the categories of households, small businesses and commercial customers, i.e. customers who are users of universal service of two public companies in the Federation of Bosnia and Herzegovina: EP BiH and EP HZ HB, in 2019 is summarized in Table 50. The structure and number of customers who were supplied as part of the universal service in December 2019 are shown in Table 49.

Customer category/group EP BiH EP HZ HB Collective 0.4 kV households I group 261,501 102,494 363,995 0.4 kV households II group 439,938 74,568 514,506 0.4 kV comme rcials I group 4,690 948 5,638 0.4 kV commercials II group 44,175 7,452 51,627 0.4 kV commercials III group 1,563 4,493 6,056 0.4 kV commercials IV group 1,520 418 1,938 0.4 kV commercials V group 8,314 301 8,615 TOTAL 761,701 190,674 952,375 Table 49. Review of the structure and number of customers within the universal service in December 2019

MWh EP BiH EP HZ HB Collective Households 2,143,050 688,250 2,831,300 Commercials 805,632 195,507 1,001,139 TOTAL 2.948,682 883,757 3,832,439 Table 50. Data on universal service supply in 2019 (MWh)

Consumption of customers from the categories of households, small businesses and commercial customers, i.e. customers who use the universal service of EP HZ HB in 2019 was 883,757 MWh, while the consumption of customers who used the universal service of EP BiH amounted to 2,948,682 MWh. Consumption of customers from the categories of households, small businesses and commercial customers, i.e. customers who are users of universal service in the Federation of BiH amounted to 3,832,439 MWh.

Power supply of customers from pubic supplier on market principles Given the fact that the Decision of the Government of the Federation of BiH on determining the provider of public/universal service and supplier of last resort to customers who do not have the right to be supplied within the universal service, and have not chosen their supplier, are left with the opportunity to be supplied by supplier of universal services according to market principles, most other customers who do not have the right to be supplied within the universal service have used this opportunity. The unfavourable trend of electricity prices in 2019 continues to contribute to a more favourable supply within the universal service in relation to the market supply of customers from the category of commercials at 0.4 kV. This is supported by the fact that in addition to customers who returned to public companies after being supplied by a market supplier in the previous period, a large number of customers who were previously supplied by public company on market conditions, return to universal service supply.

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The total realized consumption of customers from the categories of commercials, public lighting, 10 kV, 35 kV and 110 kV, i.e. customers who were supplied by EP BiH under market conditions in 2019 amounted to 1,847,324 MWh, and customers who were supplied from EP HZ HB 952,552 MWh. A complete overview of customer consumption on market conditions for these two suppliers is shown in Table 51 and Figures 11 and 12.

public commercials lightning on market 4% MWh EP BiH EP HZHB Zbirno conditions 110 kV 493.327 571.807 1.065.134 6% 110 kV 38% 35 kV 296.563 0 296.563 10(20) 10(20) kV 882.029 261.705 1.143.734 kV 41% ostala potrošnja po tržišnim uvjetima 92.254 91.405 183.659

javna rasvjeta 83.151 27.635 110.786 35 kV 1.847.324 952.552 2.799.876 11%

Figure 11. Collective structure of electricity consumption of customers supplied on market conditions in 2019 (%) Table 51. Comparative (EP BiH - EP HZ HB) overview of customer consumption by market conditions and collectively in 2019 in MWh

public public commercial lightening commercialslightening s on market 4% on market 3% conditions conditions 5% 110 kV 27% 10% 10(20) kV 27%

35 kV 110 kV 0% 60%

10(20) kV 48% 35 kV 16%

EP BiH 1,847,325 MWh EP HZ HB 952,552 MWh

Figure 12. Structure of electricity consumption of customers supplied under market conditions in 2019 by EP BiH (left) and EP HZ HB (right)

FERK ACTIVITY REPORT FOR 2019 73

Summary of power supply – I tier license

MWh EP BiH EP HZ HB Collective

Customers in households 2,143,050 688,250 2,831,300 universal service system commercials 805,632 195,507 1,001,139

Total universal service 2.948,682 883,757 3,832,440

110 kV 493,327 571,807 1,065,134 35 kV 296,564 0 296,564 Customers under 10(20) kV 882,029 261,705 1,143,733 market conditions commercials under market con. 92,254 91,405 183,659 public lightning 83,151 27,635 110,786

Total market conditions 1,847,325 952,552 2,799,876

Total 2019 4,796,007 1,836,309 6,632,316

+/- (%) 2.05% 33.73% 9.21%

Comparison - 2018 4,699,842 1,373,135 6,072,977 Table 52. Summary overview of electricity supply to customers in the system of universal service and customers under market conditions supplied by the licensees for I tier power supply in the Federation of BiH, in 2019

The total electricity consumption of customers supplied by EP BiH, within the universal service and under market conditions, in 2019 amounted to 4,796,007 MWh, which is an increase of 2.05% compared to 2018 when consumption was 4,699,842 MWh. The total electricity consumption of customers supplied by EP HZ HB, within the universal service and under market conditions, in 2019 amounted to 1,836,309 MWh, which is an increase of 33.73% compared to 2018 when consumption amounted to 1,373,135 MWh. The total electricity consumption of customers in the Federation of BiH, within the universal service and under market conditions, in 2019 amounted to 6,632,316 MWh, which is an increase of 9.21% compared to 2018 when electricity consumption in the Federation BiH amounted to 6,072,977 MWh.

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Power Supply – II Tier License

Electricity supply to customers is an activity in which an eligible customer and a supplier who is licensed for performance of electricity supply activities, and whom he freely chooses, agree on the quantity, dynamics and price that is the subject of supply. Electricity trading is the activity of buying and selling electricity, excluding sales to the end customer. Pursuant to the Law on Electricity in the Federation of Bosnia and Herzegovina, licenses for power supply – II Tier licenses are issued to applicants, i.e. power entities, which are established in accordance with the Law on Companies, and which perform the activity of: electricity generation and sales of electricity and supply of eligible customers and electricity trade on the internal market. License for power supply II tier, issued by FERK, is valid on the entire territory of Bosnia and Herzegovina. License for trade and supply of electricity issued by the Regulatory Commission for Energy of Republic of Srpska - RERS and license for trade and supply of electricity in the territory of BiH issued by the State Electricity Regulatory Commission - SERC, are also valid in the territory of Bosnia and Herzegovina, meaning, also on the territory of the Federation of BiH. Power Supply Licence – II Tier License issued by FERK are listed in the following table:

No. Licensee for Power Supply II Tier Validity Period 1. Danske Commodities BH d.o.o. from Sarajevo 06.12.2015 - 05.12.2020 2. Alpiq Energija BH d.o.o. from Sarajevo 28.01.2016 - 27.01.2021 3. EZPADA d.o.o. Mostar 19.03.2017 - 18.03.2022 4. HSE BH d.o.o. from Sarajevo 30.11.2017 - 29.11.2022 5. G-Petrol d.o.o. Sarajevo 15.03.2018 - 14.03.2023 6. HEP Energija d.o.o. from Mostar - 29.10.2020 7. “Interenergo” d.o.o. Sarajevo 29.08.2018 - 28.08.2023 8. GEN-I d.o.o. Sarajevo - 27.01.2021 9. ASA Energija d.o.o. Sarajevo 07.12.2018 - 06.12.2023 10. JP Elektroprivreda BiH d.d.- Sarajevo - 31.12.2023 01.01.2019 11. JP “Elektroprivreda HZ HB” d.d. Mostar - 31.12.2023 12. “PETROL BH OIL COMPANY” d.o.o. Sarajevo 19.11.2019 - 18.11.2024 13. Axpo BH d.o.o. from Mostar - 18.11.2024 14. ICT d.o.o. from Široki Brijeg 25.02.2020 - 24.02.2025 Table 53. Power Supply Licenses – II Tier issued by FERK

During 2019, out of 14 listed licensees for power supply – II tier, the supply of eligible customers and trade in the internal market of BiH were actively performed by two public electricity companies and 10 licensees for power supply – II tier. One licensee did not have any turnover (EZPADA d.o.o. Mostar), while three licensees (ICT d.o.o. from Široki Brijeg, G-Petrol d.o.o. Sarajevo and ASA Energija d.o.o. Sarajevo) did not trade electricity in certain months of 2019. HEP - Energija d.o.o. from Mostar, ASA Energija d.o.o. Sarajevo and "PETROL BH OIL COMPANY" d.o.o. In 2019, Sarajevo were also supplying certain number of customers on the electricity market, who have chosen their supplier freely.

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In 2019, the license for power supply – II tier was amended for EP HZ HB, while the amendment to the license for power supply – II tier for EP BiH will follow in the coming period. The following is an overview of purchases and sales on the domestic market in 2019, and imports and exports of electricity in 2019.

Kupovina 2.500.000 Prodaja 2.000.000 1.500.000 1.000.000 500.000 0 MWh

Figure 13. Overview of purchases and sales on the internal market of BiH in 2019

1.600.000 1.400.000 Uvoz 1.200.000 Izvoz 1.000.000 800.000 600.000 400.000 200.000 0 MWh

Figure 14. Review of electricity imports and exports in 2019

In addition to trade in the internal market, licensees for power supply II tier mostly also have a license for international electricity trade issued by SERC. As in previous years, the largest exporter and importer in 2019 was GEN-I d.o.o. Sarajevo.

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Table 54. Review of electricity trade in 2019

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Information on Electricity Prices

On its 19 th regular session held on 16.11.2018 FERK has made the Decision No. 01-07-857-02/18 on giving consent to JP "Elektroprivreda HZ HB" d.d. Mostar at the proposal of the price of the public supplier's universal service. This decision determined the price of the service of the public supplier EP HZ HB for the provision of universal service, based on the Methodology for Determining the Price of the Service of the Public Supplier for the Provision of Universal Service in the Federation of BiH adopted by FERK.

PRICE OF SERVICE OF PUBLIC SUPPLIER - EPHZHB

DIFFERENTIATION UNIVERSAL SERVICE BILLING UNIT DETERMIN. HOUSEHOLDS COMMERCIALS SEASONAL DAILY I tar . II tar . I tar . II tar . III tar . IV tar . V tar . group group group group group group group 1 2 3 4 5 6 7 8 9 10 11 CUSTOMER’S METERING BAM 1.90 1.90 20.00 5.20 5.20 1.90 1.90 POINT BAM BILLING HIGH 6.64 6.64 20.12 20.12 20.12 6.64 6.64 /kW/ CAPACITY month LOW 5.11 5.11 15.48 15.48 15.48 5.11 5.11 HIGH 19.74 17.98 25.66 19.74 HIGH 15.79 20.53 15.79 ACTIVE LOW 9.87 8.99 12.83 9.87 pf/kWh ENERGY HIGH 15.18 13.84 19.74 15.18 LOW 12.15 15.79 12.15 LOW 7.59 6.92 9.87 7.59

OVER-TAKEN REACTIVE pf/kvarh 0.00 0.00 3.22 0.00 0.00 0.00 0.00 ENERGY

Table 55. Review of the prices of the public service provider for the provision of universal service in 2019 for EP HZ HB

On its 22 nd regular session held on 21.12.2018, FERK has made the Decision No. 01-07-859-06/18 on determining the price of the public supplier's service for the provision of universal service to JP Elektroprivreda BiH d.d. - Sarajevo. The mentioned decision determined the price of the service of the public supplier of EP BiH for the provision of universal service, based on the Methodology for Determining the Price of the Service of the Public Supplier for the Provision of Universal Service in the Federation of BiH adopted by FERK.

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PRICE OF SERVICE OF PUBLIC SUPPLIER - EP BiH

UNIVERSAL SERVICE BILLING UNIT DAILY HOUSEHOLDS COMMERCIALS DETERMIN. I tar. II tar. I tar. II tar. III tar. IV tar. V tar. group group group group group group group 1 2 3 4 5 6 7 8 9 10 CUSTOMER’S BAM 4.80 4.80 9.65 6.90 4.80 4.80 6.90 METERING POINT

BILLING BAM 0.00 0.00 16.52 0.00 0.00 0.00 0.00 CAPACITY /kW/ month

HIGH 16.82 14.89 23.91 16.82 ACTIVE ENERGY pf/kWh 13.46 13.46 19.13 LOW 8.41 7.45 11.95 8.41

OVER-TAKEN REACTIVE pf/kvarh 0.00 0.00 3.22 0.00 0.00 0.00 0.00 ENERGY

Table 56. Overview of the prices of the public service provider for the provision of universal service in 2019 for EP BiH

Figure 15 shows the ratio of average planned prices and average realized prices in 2019 in EP BiH, for consumption categories that have the possibility of supply within the universal service. The picture shows that the realized prices are higher than planned in the consumption groups commercials II tariff group and commercials V tariff group, while for households consumption groups I and II tariff group and commercials I, III I IV tariff group realized prices are lower than planned prices. The total realized average price is lower than the total planned average price of public supply for 2019.

FERK ACTIVITY REPORT FOR 2019 79

25 21,09 21,02 19,66 19,59 18,82 19,47 18,77 20 18,24 17,50

pf/kW 16,38 15,79 15,39 15,22 15,82 15,71 14,53 14,10 14,57 15 13,50 13,97

10

5

0 0,4kV 0,4kV Kućanstva 0,4kV 0,4kV 0,4kV 0,4kV 0,4kV Ostala Ukupno Kućanstva Kućanstva Ukupno Ostala Ostala Ostala Ostala Ostala potrošnja I-g. II-g. potrošnja potrošnja potrošnja potrošnja potrošnja Ukupno I-g. II-g. III-g. IV-g. V-g. Planirana prosječna cijena električne energije Ostvarena prosječna cijena električne energije

Figure 15. Planned/realized average price for 2019 EP BiH for categories and groups of consumption that have the possibility of supply within the universal service

Figure 16 shows the ratio of average planned prices and average realized prices in 2019 in EP HZ HB, for consumption categories that have the possibility of supply within the universal service. The picture shows that the realized prices are higher than planned in the consumption groups of households I and II tariff group and commercials III tariff group, while for consumption groups of commercials I, II, IV and V tariff group realized prices are lower than planned prices. The total realized average price is higher than the total planned average price of public supply for 2019.

25 21,41 21,51 20,05 19,89 19,73 19,64 20 19,04 19,01 17,54 17,17 16,30 16,32 15,97 16,00 15,37 pf/kW h 14,63 14,67 15,35 15 13,85 13,69

10

5

0 0,4kV 0,4kV Kućanstva 0,4kV 0,4kV 0,4kV 0,4kV 0,4kV Ostala Ukupno Kućanstva Kućanstva Ukupno Ostala Ostala Ostala Ostala Ostala potrošnja I-g. II-g. potrošnja potrošnja potrošnja potrošnja potrošnja Ukupno I-g. II-g. III-g. IV-g. V-g. Planirana prosječna cijena električne energije Ostvarena prosječna cijena električne energije

Figure 16. Planned/realized average price for 2019 EP HZ HB for categories and groups of consumption that have the possibility of supply within the universal service

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Fluctuation of Average Electricity Prices Figure 17 shows the fluctuation of realized average prices for categories of customers who are supplied within the universal service of public suppliers EP HZ HB and EP BiH from 2017 to 2019.

Figure 17. Fluctuation of average realized prices for categories of customers supplied within the universal service from 2017 to 2019 for EP HZ HB and EP BiH

Price structure, share of network fee and charges in the total price of electricity in 2019 With the opening of the electricity market, the activity of generation and supply become market activities, while distribution (networks) remains a regulated activity. The network tariff includes the costs of operation, maintenance and development of the network as well as the costs of energy to cover losses in the network, and the costs of transmission, ISO BiH and system services.

100 80 60 40 20 0 0,4kV 0,4kV Kućanstva 0,4kV 0,4kV 0,4kV 0,4kV 0,4kV Ostala Ukupno Kućanstva Kućanstva Ukupno Ostala Ostala Ostala Ostala Ostala potrošnja I-g. II-g. potrošnja potrošnja potrošnja potrošnja potrošnja Ukupno I-g. II-g. III-g. IV-g. V-g.

EP BiH Mrežarina EP BiH Cijena nabave, proizvodnje i opskrbe električne energije

Figure 18. The share of network fee in the total planned average price of electricity by categories and groups of consumption that have the possibility of supply within the universal service for 2019 in EP BiH

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100 90 80 70 60 50 40 30 20 10 0 0,4kV 0,4kV Kućanstva 0,4kV 0,4kV 0,4kV 0,4kV 0,4kV Ostala Ukupno Kućanstva Kućanstva Ukupno Ostala Ostala Ostala Ostala Ostala potrošnja I-g. II-g. potrošnja potrošnja potrošnja potrošnja potrošnja Ukupno I-g. II-g. III-g. IV-g. V-g.

EP HZ HB Mrežarina EP HZ HB Cijena nabave, proizvodnje i opskrbe električne energije

Figure 19. The share of network charges in the total planned average price of electricity by categories and groups of consumption that have the possibility of supply within the universal service for 2019 in EP HZ HB

70 pf/kWh 60

50

40

30

20

10

0 EU 28 EU Grčka Srbija Italija Kosovo Poljska Austrija Albanija Slovačka Hrvatska Bugarska Slovenija Mađarska Njemačka Francuska Crna Crna Gora Španjolska Rumunjska Makedonija Češka Češka Republika Bosna Bosna i Hercegovina Cijene bez poreza i naknada Cijene sa svim naknadama i porezom

Figure 20. Overview of realized average prices in the first half of 2019 according to Eurostat household (annual consumption 2,500 to 5,000 kWh)

Figure 20 shows the average prices achieved in the first half of 2019 for households (annual consumption 2,500 - 5,000 kWh) according to EUROSTAT records. According to the presented figure, a comparison of the realized average prices was made, which includes fees and taxes, and prices without fees and taxes. The picture shows that the average price in the first half of 2019 in Bosnia and Herzegovina was among the lowest in Europe.

FERK ACTIVITY REPORT FOR 2019 82

30 pf/kWh 25 20 15 10 5 0 EU 28 EU Grčka Srbija Italija Kosovo Poljska Austrija Švedska Slovačka Hrvatska Bugarska Slovenija Mađarska Njemačka Francuska Crna Crna Gora Španjolska Rumunjska Makedonija Češka Češka Republika Bosna i Bosna Hercegovina

Cijene bez poreza i naknada Cijene sa svim naknadama i porezom

Figure 21. Average prices in the first half of 2019 according to Eurostat industry (annual consumption 500 to 2,000 MWh).

Figure 21 shows the realized average prices in the first half of 2019 for industry (annual consumption 500 - 2,000 kWh) according to EUROSTAT records. A comparison of the realized average prices, which includes fees and taxes, and the price without fees and taxes, was performed.

Information on number of customers connected to distribution networks of EP HZ HB and EP BiH

The following tables show the number of customers connected to the distribution networks of EP HZ HB and EP BiH by categories, customer groups and by months in 2019.

EP HZ HB

Categories and groups of I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. customers

35 kV 0 0 0 0 0 0 0 0 0 0 0 0

10 kV 217 223 220 220 218 222 223 223 226 226 225 225

MV Total 217 223 220 220 218 222 223 223 226 226 225 225

0,4 kV-households I g. 102,112 102,720 102,921 103,557 103,566 104,061 104,752 105,011 104,193 104,105 103,230 102,950

0,4 kV-households II g. 75,909 75,405 75,428 74,974 74,948 74,560 74,012 73,911 74,746 74,919 75,846 76,182

0,4 kV-commercials I g. 1,448 1,448 1,460 1,460 1,464 1,472 1,483 1,490 1,505 1,507 1,503 1,515

0,4 kV-commercials II g. 8,078 8,039 8,062 8,069 8,096 8,127 8,149 8,133 8,137 8,140 8,145 8,215

FERK ACTIVITY REPORT FOR 2019 83

0,4 kV-commercials III g. 4,800 4,858 4,813 4,788 4,806 4,793 4,795 4,813 4,837 4,832 4,800 4,709

0,4 kV-commercials IV g. 498 506 514 527 516 519 526 514 533 541536 537

0,4 kV-commercials V g. 325 323 320 317 328 332 335 347 340 333344 343

0,4 kV-public lightning 1,771 1,800 1,791 1,792 1,806 1,808 1,817 1,821 1,807 1,8531,844 1,844

LV Total 194,941 195,099 195,309 195,484 195,530 195,672 195,869 196,040 196,098 196,230196,248 196,295

Total LV+MV 195,158 195,322 195,529 195,704 195,748 195,894 196,092 196,263 196,324 196,456196,473 196,520

Table 57. Number of customers in 2019 by months for EP HZ HB

EP BiH

Categories and groups of I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. consumption

35 kV 65 66 65 63 64 64 64 64 64 63 63 63

10 kV 914 913 912 886 917 923 923 927 929 932 935 936

MV Total 979 979 977 949 981 987 987 991 993 995 998 999

0,4 kV-households I g. 278,462 276,788 274,549 272,541 270,479 268,863 268,137 267,301 265,728 264,634 263,533 261,501

0,4 kV- households II g. 417,044 419,404 421,775 423,826 426,349 428,439 429,866 431,307 433,528 435,055 437,062 439,938

0,4 kV-commercials I g. 4,960 4,971 4,979 4,969 5,001 5,010 5,036 5,048 5,064 5,065 5,081 5,110

0,4 kV- commercials II g. 46,968 47,003 47,020 46,929 46,983 47,038 47,108 47,205 47,272 47,320 47,499 47,655

0,4 kV- commercials III g. 1,650 1,649 1,633 1,625 1,617 1,613 1,611 1,607 1,597 1,577 1,567 1,563

0,4 kV- commercials IV g. 1,385 1,386 1,402 1,415 1,430 1,442 1,453 1,458 1,464 1,488 1,506 1,520

0,4 kV- commercials V g. 9,302 9,293 9,251 9,204 9,150 9,100 9,082 9,061 9,017 8,971 8,907 8,847

0,4 kV-public lightning 4,482 4,497 4,501 4,512 4,527 4,539 4,546 4,551 4,559 4,564 4,573 4,586

LV Total 764,253 764,991 765,110 765,021 765,536 766,044 766,839 767,538 768,229 768,674 769,728 770,720

Total LV+MV 765,232 765,970 766,087 765,970 766,517 767,031 767,826 768,529 769,222 769,669 770,726 771,719 Table 58. Number of customers in 2019 by months for EP BiH

Electricity Market in the Federation of BiH

From 1 January 2015, all electricity customers in the Federation of BiH have the opportunity to choose their supplier on the electricity market. Households and small customers can be supplied as part of universal service at regulated prices.

The negative impact of high electricity prices on the competitiveness of power suppliers has resulted in a decrease in the number of active suppliers in the electricity market in the Federation of Bosnia and Herzegovina. Compared to 2018, when this activity was performed by five suppliers, in January 2019 the activity of power supply, in addition to public electricity companies, was performed by four suppliers, and in December 2019 this number was reduced to two suppliers - HEP Energija doo from Mostar and "PETROL BH OIL COMPANY" d.o.o. Sarajevo. Customers who were supplied by suppliers who ceased operations in 2019 mostly returned to public power companies. In other words, in addition to the decline in the number of active

FERK ACTIVITY REPORT FOR 2019 84

suppliers in the electricity market in 2019, there was also a decline in the number of customers who are supplied by other suppliers. Thus, in January 2019, 29 customers were supplied from market suppliers, which are not public electricity companies, while in December 2019 that number was 14 customers. In terms of energy, in 2019, these four suppliers supplied their customers with a total amount of electricity of 73,230 MWh. As for customers at 110 kV, Aluminij d.d. Mostar until June 2019, when it ceased to operate, was supplied by EP HZ HB with the amount of electricity of 567,047 MWh, while from June to December it was supplied by LE TRADING BH d.o.o. Banja Luka in the amount of 80,391 MWh. BSI d.o.o. Jajce in 2019 was fully supplied by Energy Financing Team d.o.o. Bileća in the amount of 212,921 MWh. An overview of the share of individual suppliers in the electricity market is presented in Figure 22.

PETROL BH OIL ASA Energija EFT LE Trading 0,17% 0,46% 3,04% HEP Energija 1,15% 0,42% ICT (ex Proenergy) 0,0006%

JP EP HZHB 26,24%

JP EP BiH 68,53%

Figure 22. Share of individual suppliers in the supply of end customers with electricity in the Federation of BiH in 2019 (MWh)

An overview of the quantities of total electricity consumption by voltage levels and by suppliers is shown in Table 59. The table also shows the share of supply within the universal service.

FERK ACTIVITY REPORT FOR 2019 85

Ukupna potrošnja kupaca električne energije u Federaciji BiH (univerzalna usluga i opskrba po tržišnim uvjetima) po opskrbljivačima (FBiH i RS) i naponskim razinama u 2019. godini (MWh) OIL EFT FBiH ICT (ex JP EP BiH EP JP LE Trading Proenergy) PETROL BH JP EP HZHB EP JP ASA Energija HEP Energija 110kV 493.327 571.807 18.213 80.391 212.921 1.376.659 35kV 296.564 0 296.564 10 (20)kV 882.029 261.705 42 29.406 10.014 13.374 1.196.569 kućanstva 2.143.050 688.250 2.831.300 Ostala potrošnja u okviru

usluga 805.632 195.507 1.001.139 Univerz. Univerz. univerzalne usluge Ostala potrošnja po 92.254 91.405 557 185.840 tržišnim uvjetima 1.624 Javna rasvjeta 83.151 27.635 110.786 Ukupno 4.796.007 1.836.309 42 29.406 11.638 32.144 80.391 212.921 6.998.858 Table 59. Total consumption of electricity customers by voltage levels and by individual suppliers who supplied electricity to customers in 2019

Ukupni broj kupaca električne energije u Federaciji BiH (univerzalna usluga i opskrba po tržišnim uvjetima) po opskrbljivačima (FBiH i RS) i naponskim razinama u 2019. godini OIL EFT FBiH JP EP BiH EP JP PETROL BH JP EP HZHB EP JP LE TRADING HEP Energija 110kV 4 1 0 0 1 1 7 35kV 63 0 0 1 0 0 64 10 (20)kV 872 206 4 5 0 0 1.087 kućanstva 701.439 177.062 0 0 0 0 878.501 Ostala potrošnja u okviru univerzalne 60.262 13.612 0 0 0 73.874 usluge Univerz. usluga Univerz. 0

Ostala potrošnja po 4.472 1.296 5.770 tržišnim uvjetima 0 2 0 0 Javna rasvjeta 4.482 1.692 0 0 0 0 6.174 Ukupno 771.594 193.869 4 8 1 1 965.477 Table 60. Total number of customers in the Federation of BiH by individual suppliers who supplied customers with electricity in December 2019

FERK ACTIVITY REPORT FOR 2019 86

OIL SECTOR

Wholesale of Oil Products except LPG Wholesale of oil products is the energy activity of purchasing oil products except LPG for resale to other legal entities that perform a registered activity or activity approved in accordance with the law, with the mandatory issuance of an invoice or bill. To perform this energy activity, the energy entity must obtain a license issued by FERK according to the Law on Oil Products in the Federation of BiH. The license is issued for a period of five years. The license is an administrative act for performing activities in the sector of oil and oil products. In 2019, FERK issued two licenses for wholesale of oil products except LPG, and the list of all licensees as of 31.12.2019 is given in the following table:

Issuance No. Licensee License No. Date 1. “HIFA-OIL” d.o.o. Tešanj 06-03-371/13/16 06.05.2016 2. “HIFA-PETROL” d.o.o. Sarajevo 06-03-429/49/16 24.05.2016 3. "ANTUNOVIĆ AGS" d.o.o. Orašje 06-03-484/74/16 07.06.2016 4. ENERGOPETROL d.d. Sarajevo 06-03-503/83/16 15.06.2016 5. "HOLDINA" d.o.o. Sarajevo 06-03-502/82/16 15.06.2016 6. G-Petrol d.o.o. Sarajevo 06-03-466/65/16 15.06.2016 7. ERDAL d.o.o. from Sarajevo 06-03-515/88/16 15.06.2016 8. KONZUM d.o.o. Sarajevo 06-03-413/43/16 15.06.2016 9. "SLIŠKO" d.o.o. Žepče 06-03-451/58/16 15.06.2016. 10. "ZOVKO AUTO" d.o.o. Žepče 06-03-440/55/16 15.06.2016 11. "PAŽIN" d.o.o. Chair 06-03-458/64/16 15.06.2016 12. “ALMY” d.o.o. Zenica 06-03-543/105/16 22.06.2016 13. “AME” d.o.o. Breza 06-03-544/106/16 22.06.2016 14. EOL PETROL d.o.o. Sarajevo 06-03-483/73/16 22.06.2016 15. “GREEN OIL” d.o.o. Sarajevo 06-03-478/71/16 22.06.2016 16. “POLO” d.o.o. Kalesija 06-03-531/99/16 22.06.2016 17. "SIČAJA" d.o.o. Gornji Vakuf-Uskoplje 06-03-526/94/16 22.06.2016 18. “PETROL BH OIL COMPANY” d.o.o. Sarajevo 06-03-556/109/16 04.07.2016 19. DOO "EURO-JET" Cazin 06-03-494/78/16 11.07.2016 20. OIL - AC d.o.o. Mostar 06-03-563/113/16 11.07.2016 21. JP "MEĐUNARODNI AERODROM TUZLA" d.o.o. 06-03-415/45/16 20.07.2016 22. “HIFA” d.o.o. Tešanj 06-03-396/26/16 20.07.2016 23. “ZEKA-COMERC” d.o.o. Gračanica 06-03-557/110/16 20.07.2016

FERK ACTIVITY REPORT FOR 2019 87

24. “ECOTOK” d.o.o. Travnik 06-03-392/22/16 20.07.2016 25. "VEKTOR-INTEGRA" d.o.o. Sarajevo 06-03-661/126/16 25.08.2016 26. "PAPIĆ" d.o.o. TOMISLAVGRAD 06-03-474/69/16 25.08.2016 27. Doo "ČAVKUNOVIĆ-BP" Bihać 06-03-653/123/16 25.08.2016 28. “ORMAN” d.o.o. Kiseljak 06-03-397/27/16 25.08.2016 29. “SAGA ENERGY” d.o.o. Sarajevo 06-03-387/17/16 20.09.2016 30. DOO "IBRAHIMOVIC" Bosanska Krupa 06-03-412/42/16 20.09.2016 31. "JUNUZOVIĆ-KOPEX" d.o.o. Lukavac 06-03-528/96/16 20.09.2016 32. “PROMING” d.o.o. Bugojno 06-03-685/130/16 24.10.2016 33. “EL TARIK OIL BENZINSKE STANICE” d.o.o. Sarajevo 06-03-289/14/17 24.10.2017 34. "KOPEX-SARAJLIĆ" d.o.o. Srebrenik 06-03-419/23/17 09.06.2017 35. “G-TANK” d.o.o. Vitez 06-03-526/32/17 29.08.2017 36. “TIOIL” d.o.o. Stara Bila, Vitez 06-03-567/39/17 29.08.2017 37. LAGER d.o.o. Drought 06-03-713/52/17 14.12.2017 38. "KAKANJ PETROL" d.o.o. Kakanj 06-03-1035/83/17 15.03.2018 39. “MERCATOR BH” d.o.o. Sarajevo 06-03-80/10/18 15.03.2018 40. DOO "PETROL-P" Bihać 06-03-140/4/19 15.04.2019 41. “VARIPLAST” d.o.o. Gračanica 06-03-963/19 28.11.2019

Table 61. Data on licensees for wholesale of oil products except LPG on 31.12.2019 LPG Trading

LPG trading is an energy activity that includes the activities of import, transport, storage, wholesale, bottling and sale of bottled LPG. To perform this energy activity, the energy entity must have its own or leased storage space (LPG terminal) built in accordance with applicable regulations on the construction and equipment of facility for flammable liquids and storage and transfer of flammable liquids, whose capacity must be at least 150 m 3 in one or more tanks and at least one own tank for LPG transport; if it has an LPG bottling plant, it must have bottles for filling in quantities of more than 2000 bottles with a capacity of 10 kg and a device for testing the tightness when filling bottles. Also, in order to perform this energy activity, the energy entity must have a license issued by FERK according to the Law on Oil Products in the Federation of BiH. The license is issued for a period of five years. In 2019, FERK issued one license for LPG trading and the list of all licensees on 31.12.2019 is given in the following table:

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Total capacity of Issuance Total storage No. Licensee License No. transport tanks Date capacity (m 3) (m 3) 1. “HIFA-PETROL” d.o.o. Sarajevo 06-03-431/51/16 15.06.2016 500.000 180.438 2. d.o.o. “INTER-BUTAN” Cazin 06-03-453/60/16 04.07.2016 300.000 103.70 3. "UNIKOMERC" d.o.o. Gradačac 06-03-456/62/16 04.07.2016 160.000 48.000 4. "HOLDINA" d.o.o. Sarajevo 06-03-525/93/16 20.07.2016 160.000 13.385 5. BOSSGAS PLIN d.o.o. Tomislavgrad 06-03-517/90/16 20.07.2016 160.000 15.000 6. ERDAL d.o.o. from Sarajevo 06-03-514/87/16 20.07.2016 200.000 12.000 7. “EURO-PLIN” d.o.o. Orašje 06-03-411/41/16 20.07.2016 192.000 74.430 8. "SIČAJA" d.o.o. Gornji Vakuf-Uskoplje 06-03-527/95/16 20.07.2016 160.000 114.00 9. "PAPIĆ" d.o.o. TOMISLAVGRAD 06-03-473/68/16 25.08.2016 258.000 211.00 10. “ISTRABENZ PLINI” d.o.o. Breza 06-03-588/119/16 20.09.2016 1,100.000 69.400 11. “TURBO-PROM” d.o.o. Novi Travnik 06-03-417/47/16 24.10.2016 240.000 12.000 12. “PROMING” d.o.o. Bugojno 06-03-686/131/16 08.11.2016 300.000 12.750 13. “LIQUIVEX” d.o.o. Usora 06-03-927/157/16 24.02.2017 432.000 65.000 14. “PLINOMATIC” d.o.o. Kiseljak 06-03-261/16/18 14.05.2018 260.000 38.952 15. GTG plin d.o.o. Zenica 06-03-1055/86/17 11.06.2018 240.000 14.16 16. MESSER MOSTAR PLIN d.o.o. 06-03-491/19 22.08.2019 200.000 19.018

Total 4,862.000 1,003.233

Table 62. Data on Licensees for LPG trading on 31.12.2019 Storage of Oil Products

Storage of oil products is the energy activity of storing oil products in the prescribed manner in special areas. Since these are flammable liquids, they can be kept permanently or temporarily in tanks or closed containers (bottles, buckets, barrels) during production, distribution (wholesale and retail) and consumption (consumer warehouses). Warehouses must comply with the provisions of the Rulebook on Technical and Other Conditions to be met by liquid oil petroleum-terminal warehouses, referred to in Article 59 of the Law on Oil Products in the Federation of Bosnia and Herzegovina. In order to perform this energy activity, an energy entity must have a license issued by FERK according to the Law on Oil Products in the Federation of BiH. The license is issued for a period of five years. A license for the storage of oil products except LPG is not required for the storage of oil products and LPG used for personal use in quantities not exceeding the level of 100 tons/year. In 2019, FERK issued one license for storage of oil products except LPG, and the list of all licensees on 31.12.2019 is given in the table that follows:

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Date of Total storage No. Licensee License No. Issuance capacity (m 3) 1. "HOLDINA" d.o.o. Sarajevo 06-03-501/81/16 15.06.2016 17,289.273 2. BINVEST d.o.o. Posušje 06-03-427/48/16 15.06.2016 65.000 3. “HIFA-PETROL” d.o.o. Sarajevo 06-03-432/52/16 15.06.2016 2,200.000 4. “HIFA-OIL” d.o.o. Tešanj 06-03-372/14/16 15.06.2016 8,846.000 5. G-Petrol d.o.o. Sarajevo 06-03-467/66/16 15.06.2016 748.883 6. “ALMY” d.o.o. Zenica 06-03-541/103/16 22.06.2016 350.000 7. "ZOVKO AUTO" d.o.o. Žepče 06-03-389/19/16 20.07.2016 660.000 8. “AREX” d.o.o. Gradačac 06-03-718/137/16 25.08.2016 285.105 9. Doo "ČAVKUNOVIĆ-BP" Bihać 06-03-663/127/16 25.08.2016 1,540.401 10. OIL - AC d.o.o. Mostar 06-03-562/112/16 20.09.2016 460.000 11. "PAŽIN" d.o.o. Stolac 06-03-651/122/16 20.09.2016 290.000 12. SILO PAVLOVIĆ d.o.o. Žepče 06-03-924/156/16 23.11.2016 29.000 13. "PAPIĆ" d.o.o. TOMISLAVGRAD 06-03-883/154/16 12.01.2017 377.000 14. DOO "PETROL-P" Bihać 06-03-1049/169/16 13.02.2017 30.177 15. EUROBENZ d.o.o. Grude 06-03-971/72/17 14.12.2017 3,000.000 16. “BROVIS” D.D. VISOKO 06-03-1051/85/17 28.03.2018 30.000 17. PETROL BH OIL COMPANY d.o.o. Sarajevo 06-03-1046/84/17 12.04.2018 50.000 18. JP EPBiH-Sarajevo, ZD RU "GRAČANICA" d.o.o. G.Vakuf 06-03-1007/78/17 14.05.2018 50.000 19. "TRANSPORTBETON" d.o.o. Kiseljak 06-03-727/49/18 16.11.2018 30.000 20. ArcelorMittal Zenica d.o.o. 06-03-950/76/18 11.02.2019 50.000 Total 36,380.839

Table 63. Data on licensees for storage of oil products other than LPG as of 31.12.2019 Transport of Oil Products

Transport of oil products is an energy activity of transport of oil products by road or rail. To perform this energy activity, the energy entity must have a license issued by FERK according to the Law on Oil Products in the Federation of BiH. The license is issued for a period of five years. In addition to the license, the energy entity must hold certificates for the transport of dangerous goods for each unit it uses for transport as well as appropriate driver's licenses. In 2019, FERK issued two licenses for the transport of oil products by road, and the list of all licensees on 31.12.2019 is provided in the table that follows:

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Transport units No. Licensee License No. Date of Total capacity No. Issuance (m 3) 1. BTG d.o.o. TOMISLAVGRAD 06-03-364/11/16 06.05.2016 5 109.600 2. "HOLDINA" d.o.o. Sarajevo 06-03-500/80/16 15.06.2016 1 9.687 3. “HIFA-PETROL” d.o.o. Sarajevo 06-03-430/50/16 15.06.2016 39 875.057 4. "ZOVKO AUTO" d.o.o. Žepče 06-03-441/56/16 15.06.2016 13 243.500 5. "PAŽIN" d.o.o. Stolac 06-03-457/63/16 15.06.2016 2 32.000 6. "ANTUNOVIĆ AGS" d.o.o. Orašje 06-03-490/75/16 22.06.2016 10 198.780 7. “HIFA-OIL” d.o.o. Tešanj 06-03-511/86/16 22.06.2016 36 1,314.115 8. "KOPEX-SARAJLIĆ" d.o.o. Srebrenik 06-03-538/100/16 22.06.2016 63 1,167.078 9. "PAPIĆ" d.o.o. TOMISLAVGRAD 06-03-488/76/16 22.06.2016 15 257.600 10. “PETROBIT” d.o.o. Tešanj 06-03-510/85/16 22.06.2016 21 335.000 11. “POLO” d.o.o. Kalesija 06-03-530/98/16 22.06.2016 6 117.240 12. "SLIŠKO" d.o.o. Žepče 06-03-407/37/16 22.06.2016 44 783.420 13. "UNIKOMERC" d.o.o. 06-03-455/61/16 22.06.2016 4 86.000 14. “HIFA” d.o.o. Tešanj 06-03-493/77/16 04.07.2016 19 371.720 15. “GREEN OIL” d.o.o. Sarajevo 06-03-480/72/16 20.07.2016 1 17.000 16. “ALMY” d.o.o. Zenica 06-03-542/104/16 20.07.2016 12 220.850 17. "KAKANJ PETROL" d.o.o. Kakanj 06-03-408/38/16 20.07.2016 8 98.140 18. “ZEKA-COMERC” d.o.o. Gračanica 06-03-558/111/16 20.07.2016 6 84.000 19. “ECOTOK” d.o.o. Travnik 06-03-393/23/16 20.07.2016 2 38.000 20. “AREX” d.o.o. Gradačac 06-03-717/136/16 25.08.2016 9 169.380 21. “ORMAN” d.o.o. Kiseljak 06-03-398/28/16 25.08.2016 20 324.433 22. "JUNUZOVIĆ-KOPEX" d.o.o. Lukavac 06-03-529/97/16 20.09.2016 21 242.000 23. DOO "EURO-JET" Cazin 06-03-495/79/16 20.09.2016 15 273.900 24. “GUDELJ” d.o.o. Vitez 06-03-406/36/16 20.09.2016 5 80.700 25. “HIFA-BENZ” d.o.o. Tešanj 06-03-722/138/16 20.09.2016 2 44.400 26. DOO "IBRAHIMOVIC" Bosanska Krupa 06-03-723/139/16 20.09.2016 2 41.150 27. "MAKSUMIĆ-KOMERC" d.o.o. Konjic 06-03-518/91/16 20.09.2016 3 38.300 28. "ZLATA-TRANS" d.o.o. Sarajevo, Semizovac 06-03-713/133/16 20.09.2016 15 263.820 29. Doo "ČAVKUNOVIĆ-BP" Bihać 06-03-654/124/16 07.10.2016 15 311.560 30. "SJAJ" Maglaj, d.o.o. 06-03-811/148/16 07.10.2016 2 35.400 31. “DELTA PETROL” Kakanj, d.o.o. 06-03-1099/174/16 16.12.2016 7 123.56 32. DOO "PETROL-P" Bihać 06-03-1050/170/16 12.01.2017 2 38.300 33. "TRGOŠPED" d.o.o. Kakanj 06-03-1142/179/16 13.02.2017 6 97.590

FERK ACTIVITY REPORT FOR 2019 91

Transport units No. Licensee License No. Date of Total capacity No. Issuance (m 3) 34. “EL TARIK OIL BENZINSKE STANICE” d.o.o. Sarajevo06-03-290/15/17 24.04.2017 4 72.570 35. DOO "REZ" Cazin 06-03-328/19/17 24.04.2017 5 80.300 36. OIL-AC d.o.o. Mostar 06-03-1209/186/16 19.05.2017 3 53.460 37. E-TANK d.o.o. from Ilidža 06-03-310/17/17 03.07.2017 10 197.000 38. “PROMING” d.o.o. Bugojno 06-03-459/24/17 03.07.2017 3 27.050 39. “TIOIL” d.o.o. Stara Bila, Vitez 06-03-568/40/17 29.08.2017 28 509.600 40. LAGER d.o.o. Posušje 06-03-727/54/17 14.12.2017 2 43.500 41. “MERKEZ-OIL” d.o.o. Novi Travnik 06-03-872/63/17 15.01.2018 3 40.720 42. ZIBLIN & Co d.o.o. Ljubuški 06-03-730/51/18 04.10.2018 12 229.960 43. BARAĆ CO d.o.o. Čitluk 06-03-772/60/18 16.11.2018 8 145.700 44. TRANSPORTPAŽIN d.o.o. Stolac 06-03-729/50/18 21.12.2018 6 112.200 45. AD-TANK d.o.o. Stolac 06-03-956/77/18 27.02.2019 7 155.470 46. ERO d.o.o. Čapljina 06-03-451/19 26.04.2019 2 38.000

Total 524 10,148.81.

Table 64. Data on licensees for the road transport of oil products on 31.12.2019

FERK, June, 2020.

FERK ACTIVITY REPORT FOR 2019 92

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