Energy Community provides recommendations for financial sustainability of distribution system operators

Based on national laws, as well as with the 2009/72 European Electricity directive / ECC, the operating operators of the distribution system should have all necessary human, technical, physical and financial resources available for the safe, reliable and long-term functioning of the distribution system.

The letter emphasises that all the contracting parties of the Energy Community Treaty, besides Bosnia and Herzegovina and Ukraine, are net-importers of electricity. So while the OSSHs are forced to buy electricity to cover losses on their power grids, and since local electricity products have not met those needs, the OSSH is directly exposed to rising energy prices in European markets, and this has made the financial resources of O. The SSH will be exhausted and their financial liquidity will be endangered.

Some of the main findings mentioned on paper have to do with:

The initial transition of planned and approved costs covered through tariffs.

The tariff procedures were not flexible enough to reflect the new reality.

The delay in recognising the actual costs of losses in network tariffs has caused a serious liquidity crisis for the OSSH exposed to market prices, risking their ability to provide reliable and sustained electricity supplies to consumers.

The difference between allowed and current losses has caused considerable financial damage for the OSCE.

Switching from alternative heating forms, to heating electricity, requires additional efforts by the OSSH to meet demand and preserve network stability.

The letter also provides recommendations for policy makers on how to overcome the effects of the energy crisis on the OSSH plains.