International Journal of Advances in Management and Economics (IJAME)

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Title(Un)successful liberalisation of Bosnia and Herzegovina electricity market
AuthorDijana - Ćavar
AbstractElectricity is one of services of general economic interest, which has exceptional influence on living standard of consumer. It has been delivered by monopolised, vertically integrated companies for years. Monopoly price of electric power was high. Idea of demonopolisation and privatisation have been more represented. Process of liberalisation, which has started in 1990s, should bring to emergence of competitive conditions on power market, and it would result in price lowering of this key resource. Pursuant to changes on European and world electricity market, market in Bosnia and Herzegovina has also undergone the restructure in recent years. Development of competitive conditions has failed to come on electricity market in Bosnia and Herzegovina, which is legally entirely open from the beginning of 2015. New suppliers have not appeared and consumers are also completely uninformed about changes in legislation. Electricity price increase for ‘at risk’ consumers such as pensioners, makes them completely energy poor.

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