Organisation and Reforms of the Electricity Sector in Slovenia

Organisation and Reforms of the Electricity Sector in Slovenia

By Hrovatin, N., Zoric, J. & Pittman, R.

Abstract: After the disintegration of Yugoslavia in 1991, Slovenia became an independent state and entered into the transition period from a planned to a market economy. Slovenia’s relative prosperity has been a key factor in the country’s approach to reform, which has differed substantially from other Central and Eastern European countries. It has followed a gradualist approach to change, frequently postponing many key structural reforms (World Bank, 2006). After it had successfully completed the transition process, Slovenia became a new EU member state on 1 May 2004. Its political and economic system, legislation and institutional setting fully correspond to those in the EU. Today Slovenia is considered to be one of the most successful (ex-) transition countries from Central East and South East Europe. On 1 January 2007 Slovenia was the first among the new EU member states to join the EMU and introduce the euro as its official currency. The process of liberalisation of the Slovenian electricity market to a large extent resembles what other EU countries were witnessing. To comply with the EU legislation, namely the Electricity Directives (96/92/EC) and (2003/54/EC), Slovenia had to adopt the Energy Act (1999) and the amended Energy Act (2004). The Slovenian electricity market has been partially opened since 2001. From 1 July 2007, when households became eligible customers, the electricity market has fully opened.