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The framework for performing energy activities in the electricity market is established by energy related acts, while secondary legislation elaborates legal provisions.
In Croatia we distinguish:
- public service obligation of tariff customers' electricity supply,
- electricity market.
According to the Electricity Market Act, tariff customers are supplied by the energy entity having public service obligation of tariff customers' electricity supply. This task is performed by HEP Group. Electricity prices for tariff customers are regulated by the Energy Act and the Tariff System for Energy Activities Performed as Public Services. The number of tariff customers shall decrease by gradual market opening.
Model of bilateral market, which is chosen in Croatia, is based on electricity trading through bilateral contracts. Contractual parties in the electricity supply contract are the customer and the supplier. Bilateral contracts concerning electricity trade (purchase or sale) are concluded between the supplier, the trader or the producer. Besides the supply contract or the electricity trade contract, the eligible customer and producer shall conclude a contract for using the network with HEP-Operator prijenosnog sustava (HEP-TSO) or with HEP-Operator distribucijskog sustava (HEP-DSO) depending on the voltage level the eligible customer is connected to.
HEP-TSO is in charge of procuring electricity necessary for system balancing. Each producer, supplier and trader is responsible to HEP-TSO for deviations from its contractual schedule.
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