Market participants

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.

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.

Regulated energy activities performed as public services also include electricity production for tariff customers and electricity supply of tariff customers. Both activities are performed by HEP Group as a part of a common and integral task of the energy entity having public service obligation of tariff customers' electricity supply.

Producers

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 can sell the electricity produced in his own generating facilities to:
  • a trader,
  • a supplier,
  • Croatian Transmission System Operator (CTSO) for system services, transmission network losses or system balancing,
  • HEP-DSO for distribution network services or distribution network losses.

There are three types of producers in Croatia:
  • a producer within the system of the public service, as an energy entity performing the public service obligation of tariff customers' electricity supply,
  • 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 Electricity Market Act 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 the 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,
  • entering into balancing energy contract with CTSO,
  • entering into agreement on regulation of relations on electricity market with HROTE,
  • in case of electricity 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).

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 can purchase electricity from a producer, supplier or another trader.

A trader can sell electricity to:
  • a supplier,
  • another trader,
  • Croatian Transmission System Operator (CTSO) for the system services, transmission network losses or system balancing,
  • HEP-DSO for the distribution network services or distribution network losses.

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
  • entering into balancing energy contract with CTSO,
  • entering into agreement on regulation of relations on electricity market with HROTE,
  • 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).

Suppliers

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

A supplier can purchase electricity from a producer, trader or another supplier.

A supplier can sell electricity to:
  • eligible customers in accordance with the eligible customer's supply contracts (a supplier of eligible customers),
  • tariff customers in the regulated manner (a tariff customers' supplier),
  • a trader,
  • another supplier,
  • Croatian Transmission System Operator (CTSO) for system services, transmission network losses or system balancing,
  • HEP-DSO for distribution network services or distribution network losses.

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 the 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,
  • entering into supply contract with eligible customer,
  • in case when an eligible customer changes its supplier:
    • initiating the change of supplier procedure (prescribed by the General Conditions of Electricity Supply, Official Gazette 14/2006),
  • entering into balancing energy contract with CTSO,
  • entering into agreement on regulation of relations on electricity market with HROTE,
  • 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).

DokumentList of suppliers

Eligible customers

The term customer means the end-use electricity customer. There are two groups of customers in Croatia: eligible and tariff customers. A customer is supplied exclusively by its supplier.

According to the Electricity Market Act all customers in Croatia have obtained the eligible customer status since 1 July 2008. 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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