Characteristics of Deregulation Process with Respect to the Electric Power

Abstract:- In accordance with electric power sector deregulation in the Republic of Croatia, package of Energy laws that regulate energy activities regulation implementation was accepted. This paper outlines the characteristics of deregulation of the Croatian electricity market, with a special emphasis on the two possible regulatory orientations with respect to the electricity market; the role of the regulatory body is quantification of service parameters to insure electricity quality, and the principles of modern energy activities regulation approach. The paper emphasizes the importance of enactment of Tariff structure for services in electric power activities provided as public services. The new tariff structure classifies customers into classes, a developed structure of electricity prices and five tariff models, depending on the particular customer class. The regulatory approach, i.e. how to determine the fees for the use of transmission and distribution networks, and the suitable formula for determination of the annual revenue in the distribution of electricity are described as well