Regulation of Energy Services
in the Republic of Croatia
The European Union Directive on the liberalisation of
the electricity market obligates signatory parties to
create efficient mechanisms for regulating and supervising
energy subjects in order to avoid any case of
domination, especially at the expense of customers.
Need for regulation becomes obvious in the absence
of competition (or in the case of insufficient competition)
so that the real price and quality of energy services
can be determined. The main task of the regulator
is to determine the lowest cost of the regulated
activity without compromising quality, and to, at the
same time, comply with ever stricter safety and environmental
requirements. Having in mind that the above
mentioned goals are mutually exclusive, their coordination
requires great effort and resources.
Technical standards and the quality of service are regulated
by acts of secondary legislation (Grid Code,
Market Code, General Conditions for the Supply of
Electricity to the Customers). Although all transition
countries have adopted minimal standards, an additional
volume and level of performance standards is
regulated individually by each country.
The need for regulation of the Croatian energy sector
has been determined by comparing experiences in EU
and transition countries in relation to the regulation of
their energy sectors. Based on these analyses, a proposal
has been defined for the establishment of a
Croatian regulatory body - the Croatian Energy Regulatory
Council (CERC). The proposal included the
Council’s scope of work, financing and organisational
aspects.
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