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Energy Community Secretariat launches dispute settlement procedure against Bosnia and Herzegovina

The pan-European Energy Community Secretariat has sent an Opening Letter to Bosnia and Herzegovina to address its breach of the Large Combustion Plants Directive in the case of the two thermal power plants Tuzla 4 and Kakanj 5, which continue to operate despite the expiry of their limited lifetime derogation period. 

Continuing operation past the derogation period exacerbates air pollution levels, which is responsible for severe health and environmental damage.

Following a written declaration not to operate a plant for more than 20,000 hours after 1 January 2018, the opt-out was granted to selected installations by the Energy Community Ministerial Council. This is an implementation alternative to complying with the emission limits set by the Large Combustion Plants Directive. Following the expiry of the 20,000 hours, the plants concerned can only remain in operation if they meet the (stricter) standards of the Industrial Emissions Directive. This is not, however, the case for TPPs Tuzla 4 and Kakanj 5.

Earlier this year, the Parliament of the Federation of Bosnia and Herzegovina adopted a conclusion with the intention to prolong the work of TPPs Tuzla 4 and Kakanj 5 until 1 January 2028. According to the press release, the Secretariat “made it clear already at that time” that such a unilateral decision represents a clear breach of the obligations of Bosnia and Herzegovina under the Energy Community Treaty.

The approaching end of the opt-out period for all plants concerned is continuously flagged by the Secretariat in its Annual Implementation Reports since the entry into force of the Large Combustion Plants Directive on 1 January 2018.

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