The first licensed CDSO in Croatia

Closed Distribution System Operator – a new service at HELB

The Electricity Market Act introduced a new energy activity – the Closed Distribution System Operator (CDSO), which will establish transparent relations between the participants in the exchange of electric energy. By obtaining a license, HELB became the first licensed CDSO in the Republic of Croatia and offers complete services for obtaining the status of CDS, construction and arrangement of electricity distribution network, connection and establishment of metering points, system management, electricity supply, reading and billing electricity consumption.

We bring some basic terms and information about what CDS is, who its participants are, what are the advantages, and what it enables. A Closed Distribution System (CDS) is any business system that distributes electricity within a geographically limited 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 of such systems are production – industrial complexes, transport and logistics complexes, freight terminals, shopping malls, tourist facilities etc. In existing business systems that have the characteristics of closed distribution systems, electricity use is often characterized by insufficient transparency, and there is no possibility to control the cost of electricity. On the other hand, the owners of business facilities and systems perform the service of electricity supply to customers with their own resources or through contracting companies. Thus, with the establishment of CDS, the owners realize significant benefits such as revenue from the concession of CDS, delegation of responsibility for the functioning of CDS, security and reliability of electricity supply, and focus on core business. On the other hand, it enables customers to transparently use the electricity supply service, achieve savings in consumption, legally connect to the electricity distribution network, as well as security and reliability in the use of electricity. Concerning the current situation, in addition to the Owner and User, the Operator is introduced as a licensed electricity distribution service provider, and the Regulator (HERA) and the Supervisor (State Inspectorate) for supervision and control of the technical system and relations between individual participants. Settlement metering points (SMP) are also being established, where transparent electricity exchange takes place.

June 7, 2022

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