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Index of Terms

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shall mean the generation of electricity in the hydro electric power plant, thermal power plant and other plants which are connected to the transmission or distribution network, as well as the generation for the own needs;


shall mean legal or physical body which produces the electricity;


shall mean the transmission of electricity through the distribution systems of the middle and low voltage with the aim of delivering it to the buyers;


shall mean sale, also including the resale of electricity to the buyers;

Supply of the tariff buyers

shall mean the sale of electricity to the buyers who buy electricity for their own needs at the regulated (prescribed) tariffs;

Delivery of electricity

shall mean delivery of electricity from the structure of one electric power facility to the structure of another electric power facility or buyer;


shall mean purchase and sale of electricity;


shall mean legal or physical entity which deals with the trade of electricity;

Eligible producer

shall mean the producer who in his production facility produces electricity using the waste or renewable resources of energy in an economically appropriate way and in accordance with the environmental measures, following the conditions prescribed by RERS;

The license to carry out the electric power activity

shall mean technical or legal document which is issued by the RERS which entitles the legal or physical body to carry out the regulated electric power activity such as generation, distribution, supply/trade of electricity;


shall mean legal or physical body whom the license to carry out the electric power activity of generation, distribution, supply/trade of electricity is granted, and the license for construction or large-scale reconstruction of the electric power facility;

Regulated company

shall mean the company which carries out one or more electric power activities prescribed by Law;


shall mean legal or physical body that buys electricity;

Eligible buyer

shall mean any buyer who is connected to the transmission or distribution network and who is entitled to buy electricity at his own discretion;

Non-eligible buyer or tariff buyer

shall mean the buyer who the electricity is provided for in a regulated way and at the regulated prices, i.e. in accordance with this Rule Book, tariff buyer;

Public service

shall mean the obligation of the power companies to perform certain electric power activities in the form of public services in accordance with the Law and European Union Directives;

General conditions for delivery and supply of electricity

shall mean the enactment  which regulates the power and technical conditions, as well as the economic relationships between production and distribution, system beneficiaries, supplier and end buyers of electricity;

Force majeure

is each situation that does not depend on the licensee and that he cannot control and for the reason of it cannot perform activities form the license (weather disasters, wars and similar)


shall mean the construction of new or large-scale reconstruction of the existing electric power facilities;

Opening of the license

shall mean the procedure carried out by RERS in the period of the license validity in order to make harmonization of the license conditions with changes in the legal regulations or to protect the general public interest.

Procedural rules

shall mean Procedural rules of the Regulatory Commission for electricity of Republic of Srpska (Official Gazette of Republic of Srpska number 96/04);

Large-scale reconstruction

shall mean the works at the existing facilities for production or distribution of electricity which change the parameters of the facilities, but it does not comprise the following:


1.  Change of a device or equipment if it does not cause the change of capacity and voltage,


2.  Change of the transmission line conductor with conductors of the same transversal section or one transversal section more in accordance with technical rules,


3.  Change of one or more towers,


4.  Change of the power cable if the voltage hasn’t been changed,


5.  Installation of equipment in the existing facilities, if such equipment is used for control, signalization and protection,


6.  Change or reconstruction of devices or equipment which RERS considers not to belong to the large-scale reconstruction.


shall mean the person who appears and confirms under penalty his observations by giving testimonies in the RERS procedures. Legal bodies may appoint a person who knows the facts and has the evidences on disposal on behalf of and for the account of the legal body and who will, if requested by the RERS, provide the evidences;

Presiding Officer of the Procedure/Hearing

shall mean a person who is authorized to convene the procedure at the public sessions and public hearings on behalf of the RERS, in order to enable the functioning of the RERS

Interested body

shall mean a physical or legal body who expresses the wish to participate in any phase of the procedure in front of the RERS, but does not want to realize the status of the party in the procedure or Intervener;


shall mean the Law on electricity of Republic of Srpska published in the Official Gazette of Republic of Srpska number 66/02, 29/03 and 86/03 and 111/04)

Producer for his own needs

shall mean the legal of physical body which produces the electricity for his own needs;

Spare supplier

shall mean the supplier appointed by RERS to undertake the responsibility for the electricity supply of the eligible buyers in case when the primary supplier does not meet the contracted obligations and stops supply of the eligible buyers.

Regulatory Fee

shall mean the annual amount of money which the Licensee pays to RERS for the services of supervision and application of the license, and it is determined by the RERS Decision about the regulatory fees on the basis of RERS budget adopted by the Parliament of Republic of Srpska and can be changed as the time passes.

One-off regulatory fee (charge)

is the fee which is paid to RERS during the submission of the Application for the submitted application treatment.

Public hearing

shall mean the method of work in the proceeding before RERS which is open for the public and can be general, technical and formal.


means any request, complaint, proposal, report, response, objection and other information filed by individuals or legal persons within the procedure to RERS.

Defective pleading

shall mean the pleading which contains formal, essential or procedural failure in order to be acted on its basis or is non-understandable and not in accordance with requirements of this Rule Book or other RERS regulations.


is a pleading which is used by an individual or legal person to commence a proceeding in front of RERS


is an individual or legal person that submits a request for the commencement of proceeding in front of RERS


hall mean a pleading addressed to RERS to inititate the second-instance proceeding in cases prescribed by Law.


shall mean an individual or legal person who submits a complaint to initatie the procedure before RERS in cases prescribed by law.

A defective pleading

is any pleading that contains formal, essential or procedural failure in order to be acted on its basis or is non-understandable and not in accordance with requirements of this Rule Book or other regulations of RERS.

Party to the proceeding

is an individual or legal person which request was the basis to initate the proceeding or the proceeding is led against and who was granted that status by RERS.


shall mean the interested person who has direct interest to participate in the proceeding but whose interest is different from the general public interest and who was granted the right of the intervener by RERS in the proceeding before RERS

Procedural pleading

is a document filed with RERS on certain procedural issues in the proceeding.

Opponent party

is another party in the proceeding that the subject of the request, complaint or investigation by REERS is related to, i.e. which action or failure is the subject of RERS action.

Written media

is one of the printed means of public informating which is available on the whole territory of Republic of Srpska.

Producer of the electric energy

shall mean an individual or legal person that produces the electric energy.

Distribution system operator (Distributer)

shall mean a physical or legal person, Licensee for distribution in charge of control, maintenance and development of the distribution system in respective area;

Eligible buyer

shall mean any buyers connected to the transmission or distribution network, and who are allowed to buy the electric energy by their own choice.

Participant to the proceeding

shall mean parties to the proceeding and Interveners.


shall mean any materials in writing or e-mail form used for transmission of facts, opinions, data or any other materials including its copy or part of it.

Confidential information

shall mean the information or datum contained in any materials and which was, by law, Decision or other regulation of REERS or other respective body determined as confidential and which, if disclosed to non-authorized persons, may jeopardize the interest or integrity of REERS or other physical or legal persons.


shall mean the written act printed on a sheet of paper or in e-mail form (records, documents, tables, drawings, graphs, etc) or any other documents which contain confidential information.


shall mean scale model, model, sample, photos, films and other regulations which were in light, sound, mechanic or some other way recorded at certain base.

Measures and procedures

shall mean all types of orders, instructions, notifications and other actions undertaken by authorized persons for the purposes of protection of confidential information.

Protection of confidential information

shall mean physical and material-technical procedural action, activity or procedure with the aim to prevent destruction, abalienation or misuse of confidential information.

Usage of confidential information

shall mean the procedure of confidential information usage by the authorized person while carrying out the activity, protecting the source and access to confidential information.


shall mean the procedure or a possibility to inform persons about confidential information pursuant to the provisions prescribed by this Rule.


Allocation of costs

Allocation of costs of production, transmission, distribution and supply costs to the tariff elements, to respective consumption categories and customer classes.

Test year

The reference year that is used for determination and approval of the revenue requirements of the regulated company.

Tariff design

Policies and procedures used to define the tariff elements and different categories of consumption and customer groups which application in daily intervals and seasons defines tariff rates and relations between them in accordance with the objectives and principles of the regulation policy of the energy sector.

Long-run marginal cost of the metering point of the buyer

Annual revenue needed to recover the fixed costs of operation and maintenance of the distribution system that provides the connection of a new customer to the existing network and stable supply of electricity, and costs of  data processing, metering, billing, collection for services.

Long run marginal distribution capacity cost

Annualized revenue necessary to recover total costs added to the lowest capital cost investment required to serve an additional kilowatt of load on the distribution system. These costs shall include the total investment in the construction and installation of an additional unit of capacity (total investment/ additional distribution capacity) including fixed costs of operation and maintenance of facilities per unit during the life time of the facility.

Long run marginal generation capacity costs

Annualized revenue necessary to recover total investments into the lowest capital investment into generation resource required to serve an additional kilowatt of load. These costs shall include the total investment in the construction and installation of least expensive technology and the fixed costs of operation and maintenance of that facility, in order to serve additional load per unit. The technology shall be chosen regardless of the costs of energy produced by that technology.

Delivery of electricity

Hand over of electricity from one electric power facility to the facility of another electric power subject or buyer

Coincident Demand

Demand of a customer, customer class or category of consumption at the moment of peak load of the system

Consumption category

Division of customers based on characteristics of their consumption, according to voltage level of their connection to the network, time of consumption, characteristics of demand, facilities and purpose of consumption.

Functional allocation of Costs

Breakdown of electricity costs according to the functions where they were incurred as generation, transmission, distribution or supply costs.

Connection cost

Total investment in construction and installation of connection of the end buyer to the distribution network and one-off investment to provide the conditions for connection, which the customer pays when connecting in accordance with Articles 63 and 64 of the Law on electricity (Official Gazette of Republic of Srpska”, number 66/02, 29/03. 86/03 and 11/04) (hereinafter “Law”)

Marginal cost of the system

Electricity price from the plant which, according to the merit order of dispatching, is the last one connected into system due the production of capacity needed.

Non Coincident demand

Registered demand of a customer, customer class or customer category at any time, regardless of the time of peak demand of the system as a whole.

Customer Metering Point

Point where metering installation is located for metering electricity which the buyer takes for consumption from the electric power system.

Capacity charge

Tariff element used for measuring and calculating charges to recover costs of generation, transmission and distribution capacities necessary to meet maximum demand of customer at all times during the billing period.

Cross – subsidization

Allocation of costs of regulated activities to consumption categories and/or customer classes which is not based on direct reason of incurred costs, so that one class will cover the costs which should be allocated to the other class.

Tariff Elements

Calculative units in a tariff system used to measure outputs of a regulated company - licensee and to express charges for those outputs.

Tariff Period

Period of effectiveness of network tariffs and tariffs for non-eligible buyers of electricity approved by the Regulator.

Tariff System

System of criteria and rules defining: tariff elements, their application in daily intervals and seasons for customer classes, and tariff rates to be charged to customers for rendered services in electric power sector. 

Tariff Rate

Unit prices of each tariff element applied to each consumption category and customer class for different periods.






Regulatory Commission for Energy of Republic of Srpska (Regulator)


State Regulatory Commission for Electricity of Bosnia and Herzegovina


Regulatory Commission for Electricity in BiH Federation


Independent System Operator of the Transmission Network