• Date established: 16 April 2001. 5 Commissioners + 26 staff members.
•  Mr. Tudev Tserenpurev was appointed as ERA Chairman in 2012. Chairman and 2 commissioners are nominated by the Cabinet Minister in charge of energy and 2 part-time commissioners are nominated by the Mongolian National Chamber of the Trade and Industry and Consumer Right Protection Association appointed by the Prime Minister. Chairman and commissioners are appointed for staggered terms 2, 4, 6 years which may be extended once for an additional 3 years and removal is for cause only.

   

  Industry and Market Structure

  Electricity Market Structure The Central electricity system consists of 5 co-generation, 1 electricity transmission and 10 electricity distribution companies. Except 3 private electricity distribution companies they are all state owned joint stock company. The ERA introduced the Single Buyer Model (SBM) as a market model since September 2002 for central electricity system. In Mongolian case 5 generating companies sell its electricity at regulated price to the Single Buyer /The Central regional Electricity Transmission Company is market operator/ sells electricity to 10 distribution companies. Being tested in 2005, the spot market has been effective since 2006. The National Dispatching Center was selected to act as a Spot Market Operator. Electricity sales of the spot market were 7.0 million kWh in 2006, 6.8 million kWh in 2007, 7.6 million kWh in 2008 and 4.1 million kWh in 2009, 4.9 million kWh in 2010, 3.9 million kWh in 2011 indicating a gradual shrink. The ERA has started the auction market since August 2007, where an incremental electricity demand is auctioned among generating licensees for the best prices. There were only 5 transactions recorded for time being. The National Dispatching Center operates the auction market. Despite 26 million kWh of power being auctioned in 2011 only 4,5 million kWh were sold on the market. Natural Gas Some companies just import liquefied gas from Russia and China by truck-tank for residential and industrial use.

   

   

  Current Energy Issues

  Take an attention to approve PPA which is suitable for the International standard  with an energy resources /IPP/ which is planned to establish newly. Electricity and heat tariff liberalization guidelines by 2013 year are approved by Parliament Resolution #72

   

• The ERC is responsible for licensing of enterprises in electricity; district heating markets. According to the law the ERC issues operational licenses with the conditions and terms, which meets the interests of general public and society, sets and supervises prices and tariffs for electricity and heat and resolves disputes between consumers and licensees. The ERC approves electricity market rules. According to the Energy law amendment ERC is responsible to formulate coal price methodology which is used energy production and to develop tariff price indexing.
• ERA is financed by fees collected from license holders.

Energy Regulatory Commission, University street 2A (Ikh surguuliin 2A),
Ulaanbaatar-14201, Mongolia,
Tel.: (976 11) 313203,
Fax: (976 11) 319335,
E-mail: info{.}erc .mn
Internet: http://www.erc.mn
http://www.erranet.org/AboutUs/Members/Profiles/Mongolia