This paper analyzes the development of the medium voltage network in the Elektrolika Gospic distribution area and examines the market conditions in the context of development plans in accordance to the new Conditions of Electricity Supply Quality. How is the Croatian Energy Regulatory Agency (HERA), pursuant to Article 60, paragraph 2 of the Electricity Market Act, introduced the Electricity Quality Requirements this paper the state of the distribution network in the area of Elektrolika Gospic is analyzed from the aspect of the reliability of the power supply on the example of the distribution area. Moreover, the impact of the Conditions of Electricity Supply Quality from the aspect of reliability of the power supply, long-term development plans and necessary investments has been assessed in order to improve the reliability of the supply and delivery of electricity. The paper also deals with planned and unplanned interruptions in electricity supply, and special emphasis is given to the realization of the Investment Plans, which predominantly affect the achievement of other business goals related to the reduction of technical and non-technical losses in the distribution network from the economic point of view. Furthermore, the paper deals with the reconstruction of the medium-voltage network in the area of the Velebit coast, as a separate segment, and analyzes the techno-economic side of the investment and its impact on tourism development.