POWER UTILITY COMPANIES IN THE SURROUNDING AREA – THE OPENING OF THE ELECTRIC POWER MARKET

Mješoviti Holding Elektroprivreda Republike Srpske, Trebinje, Matično preduzeće, akcionarsko društvo Trebinje, Republika Srpska, Bosna i Hercegovina
Bosnia and Herzegovina

Mješoviti Holding Elektroprivreda Republike Srpske, Trebinje, Matično preduzeće, akcionarsko društvo Trebinje, Republika Srpska, Bosna i Hercegovina
Bosnia and Herzegovina


Abstract

The development of electric power markets in the surrounding area is presented in this work. The electric power sector of one country represents an industry of electric power production. In accordance with the definition of a natural monopoly in the electric power sector, the transmission and distribution of electric power have the characteristics of a natural monopoly, while the production, trade, and supply do not have those characteristics. Therefore, there was a separation of certain activities in vertically integrated power utility companies, where the transmission and distribution activities of electric power were regulated. The electric power market is going through the process of transformation and liberalization and is facing problems from both an economic and political aspect, as well as from the aspect of mechanical and technological development. This work focuses on the describing the electric power sector, reform processes in the sector, as well as explains the basic mechanisms of the electric power market and the ways of forming the prices on the market.

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