The article examines how to make the electricity market in Croatia more efficient as it opens up to competition. It discusses the benefits and drawbacks of regulations that influence the market, such as encouraging investments and preventing monopolies. The paper also looks at the partners involved in the market and the impact of regulations. It analyzes the licensing process in the Croatian power sector from 2003 to 2005 and discusses the structure and organization of the market to help choose the best model for the power supply market.