Market participants


Register of valid balance groups on Croatian electricity market

A market participant in the Croatian electricity market is any producer, supplier, trader or eligible customer.

A producer, supplier and trader must have a license for performing energy activity, issued by the Croatian Energy Regulatory Agency (HERA).
 

The organization of the electricity market, electricity transmission and distribution are regulated activities performed as public services:

  • HROTE is responsible for the organization of the electricity market,
  • Croatian Transmission System Operator (CTSO) is responsible for electricity transmission, maintenance, development and construction of transmission system, and power system control,
HEP-Operator distribucijskog sustava (HEP-DSO) is responsible for electricity distribution, maintenance, development and construction of distribution system.

 

Producers

A producer is an energy entity with a license to produce electricity, an energy entity producing electricity for its own needs and an energy entity having generation facilities of up to 1 MW.

A producer may buy or sell the electricity to another producer, supplier, trader, power exchange, Croatian Transmission System Operator in order to provide ancillary services, providing balancing services, compensation plan exchanges and to cover losses in the transmission network, HEP Distribution System Operator in order to provide ancillary services and to cover losses in the distribution network or in a way that is imported or exported over Croatian borders.
 
There are two types of producers in Croatia:
 
  • an eligible producer,
  • an independent producer.

An eligible producer is producer which can obtain the status through production of electricity from the renewables and cogeneration. The Energy Act, the Law on renewable energy and high-efficiency cogeneration and secondary legislation regulate incentivizing such electricity production as well as the purchase/sale of electricity produced from the renewables and cogeneration.

In order to participate in the electricity market a potential producer shall undertake the following:
 
  • registration of company or entrepreneur in court register of Commercial court of  Republic of Croatia,
  • obtaining energy activity license for production of electricity issued by Croatian Energy Regulatory Agency (in case of facility's installed capacity >= 1 MW),
  • entering into network use contract with CTSO and/or HEP-DSO,
  • obtaining EIC code from Issuing Office authorized by ENTSO-E (EIC),
  • in case a potential producer wants to participate as:
    • Balance group manager: sign a Balance Responsibility Agreement with CTSO,
    • Member of existing balance group: sign a Membership Agreement with manager of existing balance group, 
  • submitting a completed Request for signing of an Agreement with HROTE (Request),
  • entering into Electricity Market Participation Agreement with HROTE (Agreement),
  • in case of electricity import or export:
    • applying to CTSO for participation in cross border transmission capacities allocation,
participation in allocation of cross border transmission capacities (organized and held by CTSO, JAO or SEE CAO).
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Traders

A trader is an energy entity which purchases and sells electricity having obtained the appropriate license for carrying out the energy activity.

A trader  may buy or sell the electricity to producer, supplier, another  trader, power exchange, Croatian Transmission System Operator  in order to provide ancillary services, providing balancing services, compensation plan exchanges and to cover losses in the transmission network, HEP Distribution System Operator in order to provide ancillary services and to cover losses in the distribution network or in a way that is imported or exported over Croatian borders.
 
In order to participate in the electricity market a potential trader shall undertake the following:
 
  • obtaining appropriate energy activity license issued by Croatian Energy Regulatory Agency,
  • obtaining EIC code from Issuing Office authorized by ENTSO-E (EIC),
  • in case a potential trader wants to participate as:
    • Balance group manager: sign a Balance Responsibility Agreement with CTSO,
    • Member of existing balance group: sign a Membership Agreement with manager of existing balance group, 
  • submitting a completed Request for signing of an Agreement with HROTE (Request),
  • entering into Electricity Market Participation Agreement with HROTE (Agreement),
  • in case of electricity import or export:
    • applying to CTSO for participation in cross border transmission capacities allocation,
participation in allocation of cross border transmission capacities (organized and held by CTSO, JAO or SEE CAO). 0

Suppliers

A supplier is an energy entity having a license for performing the activities of electricity supply.

A supplier  may buy or sell the electricity to producer, another supplier,  trader, power exchange, Croatian Transmission System Operator in order to provide ancillary services, providing balancing services, compensation plan exchanges and to cover losses in the transmission network, HEP Distribution System Operator in order to provide ancillary services and to cover losses in the distribution network or in a way that is imported or exported over Croatian borders.
 
Until 1st of January 2017  each supplier is obligated to off-take a minimal share of electricity produced from renewable energy sources and cogeneration by incentivized eligible producers. Required minimal share is prescribed by the Croatian Government ordinance.

In order to participate in the electricity market a potential supplier shall undertake the following:

 
  • registration of company or entrepreneur in court register of Commercial court of  Republic of Croatia,
  • obtaining energy activity license for supply of electricity issued by Croatian Energy Regulatory Agency,
  • obtaining EIC code from Issuing Office authorized by ENTSO-E (EIC),
  • entering into supply contract with eligible customer,
  • in case when an eligible customer changes its supplier:
  • in case a potential supplier wants to participate as:
    • Balance group manager: sign a Balance Responsibility Agreement with CTSO,
    • Member of existing balance group: sign a Membership Agreement with manager of existing balance group, 
  • submitting a completed Request for signing of an Agreement with HROTE (Request),
  • entering into Electricity Market Participation Agreement with HROTE (Agreement),
  • entering into contract with HROTE regarding regulation of mutual obligations in the system of incentivizing electricity production from renewables and cogeneration,
  • in case of electricity import or export:
    • applying to CTSO for participation in cross border transmission capacities allocation,
participation in allocation of cross border transmission capacities (organized and held by CTSO, JAO or SEE CAO).
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Eligible customers

The term customer means the end-use electricity customer. A customer (whether its category is households, enterprises or industry) is supplied exclusively by its supplier.

An eligible customer can freely choose a supplier and negotiate the electricity price. Total electricity price for eligible customers consists of:
 
  • electricity price contracted with a supplier,
  • transmission network fee or distribution network fee,
  • incentive fee for electricity production from renewable energy sources and cogeneration,
  • other fees regulated by law (e.g., fee for stranded costs if they are approved).
A household which does not wish to exercise the eligible status, or does not succeed in finding a supplier, has the right to be supplied by the supplier of tariff customers.
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