HELB is among the first in Croatia to provide the energy service of a CLOSED DISTRIBUTION SYSTEM OPERATOR (CDSO). According to the Electricity Market Act (NN 111/2021), there is a legal obligation for all business system owners who operate business systems in which space users use electricity through a common metering point, to operate the existing system according to the Closed Distribution System (CDS) model.

Closed Distribution System (CDS)

It is any business system that distributes electricity within a geographically restricted industrial or commercial location or where there is more than one user who is supplied with electricity through a common metering point.

The most common examples are economic zones, shopping and business centers, health rehabilitation facilities, hotel and tourist facilities, transport and logistics systems, and special purpose zones such as customs zones etc.

What CDS allows

The primary purpose of the introduction of CDS is the establishment of TRANSPARENT relations in energy exchange, ie ensuring at least the same standards of electricity supply service as in the public distribution network.

By establishing a metering system for all users, RATIONALIZATION and management of electricity costs are achieved.

In addition, the GREEN TRANSITION in energy consumption is enabled either by purchasing the service of Guarantees of Origin (GoO) or by implementing its production from renewable energy sources (RES).

Participants and relations within CDS

Concerning the existing situation, in addition to the Owner and User of the business system, the Operator (OCDS) is introduced as a licensed electricity supply service provider and the Regulator (HERA) and the Inspectorate (State Inspectorate) as entities for supervision and control of technical systems as well as the participant’s relations. Settlement metering points (OMM) are also being established, where transparent electricity exchange takes place. More on the link.


Closed Distribution System Operator's (CDSO) role

Since the supply of electricity is an energy service, and to prevent unregistered performance of energy services, the Law stipulates that the establishment, management, and exchange of electricity in closed distribution systems are entrusted to a licensed energy entity – Closed Distribution System Operator (CDSO).

The basic role of the CDSO includes: conducting procedures for obtaining the status of CSD, development, management, and maintenance of a safe, reliable, and efficient CDS, delivery of electricity of the prescribed quality to CDS users.

The CDSO is also obliged to ensure objective and transparent conditions for access to the CSD, metering, and billing of electricity consumption, and payment of liabilities according to bills at the primary billing metering point. More in the presentation.

Benefits for CDS participants

For the OWNER: income from the CDSO concession, delegating responsibility for the functioning of the CDS, security, and reliability of electricity supply, and focus on core business

For the USER: transparent use of the electricity supply service, the possibility of achieving savings in consumption, legal connection to the electricity distribution network, and security and reliability of electricity supply.

The process of establishing a CDS

1) ACQUISITION: in-depth recording, bid, management contract, and appointment of CDSO,

2) LICENSING: request for issuance of a decision on the status of CDS, and issuance of a Decision on the status of CDS (HERA),

3) ADMINISTRATIVE – TECHNICAL PREPARATION: arranging electrical energy infrastructure, the connection of users to CDS, contract for the use and supply of electricity,

4) ELECTRICITY MANAGEMENT AND SUPPLY: CDS management, electricity supply, reading, billing, and collection of consumption.

More in the presentation.