Energy Community initiates dispute settlement procedures, three Contracting Parties failed to unbundle DSOs

The Energy Community Secretariat opened preliminary dispute settlement procedures against Albania, Bosnia Herzegovina and Ukraine for the failure to fulfill their obligations under the Energy Community Treaty to legally and functionally unbundle national electricity distribution system operators (DSO).

“The Energy Community Secretariat initiated ex officio preliminary dispute settlement procedures against Albania, BiH, and Ukraine for the lack of unbundling of the countries’ electricity DSOs,” Energy Community Secretariat said in a statement.

The three Contracting Parties fail to comply with their obligations under the Energy Community Treaty by (completely, partly or incorrectly) not having transposed the unbundling requirements of the Third Energy Package into national legislation and not having taken measures to implement legal and functional unbundling of their national electricity DSO in practice.

According to the Opening Letters sent to three countries by Secretariat, the DSOs still have fully integrated legal and functional governance structures for electricity distribution and supply.

Albania failed to transpose the requirements of Electricity Directive 2009/72/EC on legal and functional unbundling of electricity distribution system operators in line with the deadline of 1 January 2015 foreseen by the acquis; failed to transpose Article 26 of the Electricity Directive requiring independent decision making of the DSO and the establishment of a compliance officer and program; and failed to adopt, within the prescribed time limit, the national measures to ensure legal and functional unbundling of the national electricity DSO, OShEE, in practice.

BiH failed to transpose the requirements of Electricity Directive 2009/72/EC requiring the establishment of a compliance officer and program in the Federation of BiH in line with the deadline of 1 January 2015 foreseen by the acquis; failed to transpose Directive 2009/72/EC on legal and functional unbundling of electricity DSOs in Republika Srpska in line with the same deadline; and failed to adopt, within the prescribed time limit, the national measures to ensure legal and functional unbundling of Elektropriveda BiH Sarajevo, Elektropriveda HZHB Mostar and Elektropriveda Republike Srpske in practice.

Ukraine failed to transpose the requirements of Article 26 of Electricity Directive 2009/72/EC on legal and functional unbundling of electricity DSOs  in line with the deadline of 1 January 2015 required by the acquis and failed to adopt, within the prescribed time limit, the national measures to ensure legal and functional unbundling of the national electricity DSOs in practise.

The aim of Opening Letter is to give three countries the opportunity to reply to the claims of Energy Community’s law violation.