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Energy Investment Regularion Conference 2008, Budapest


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UNMIK Kosovo
Energy Regulatory Office (ERO)

 

Key Statistics (2007)

Population

approx. 2.1 mln (source Statistical office of Kosova 2007

GDP/Capita

$1990 (source UNMIK Fakt Sheet 2007)

Generation

Fossil fuel: 97.5%
Hydro: 2.5%

Electricity Market Size

4.33 TWh/year

Deficit of available installed capacity over demand

51 MW

Net Electricity Importer

0.263 TWh/year

Natural Gas

Kosovo doesn’t have gas resources, no import, and no market

Summary
  • Established in 2004, 24 staff members
  • Mr. Ali Hamiti was appointed Chairman in 2007.
  • The Board of ERO is comprised of five members. The initial Board members are nominated by the Special Representative of Secretary General (SRSG) of United Nation Mission in Kosovo (UNMIK) (3) and Assembly of Kosovo (2). The term for appointed candidates from SRSG is 2 years for the Chairman, 3 years for one member, and 2 years for another member. The term for appointed candidates from the Assembly is 4 years for the one member and 5 years for another member.
  • ERO is responsible for establishment and enforcement of a regulatory framework for the energy sector (electricity, heating and gas) in Kosovo, ensuring non-discrimination, effective competition, and the efficient functioning of energy market.The ERE is financed from the licensing fees.
  • Initially funding comes from three resources: Kosovo Consolidated Budget, UNMIK/EU Pillar, and Donor support different projects. Starting from 2007 ERO will be self-financed, and funding will come from licensing fees
  • Industry and Market Structure
    • Kosovo Power Corporation (KEK) J.S.C; is a vertically-integrated publicly-owned enterprises. As integral parts of KEK were four core businesses: lignite mines, power generation, distribution network and supply. KEK is currently the subject of incorporation and legal and accounting unbundling processes;
    • Transmission System Operator and Market Operator “KOSTT”; Kosovo government on June 2006 has nominated the KOSTT J.S.C (unbundled from vertically-integrated publicly-owned enterprise KEK) as TSO and MO of Kosovo.
    • KOST J.S.C on 13 October 2006 become Full Member in the SETSO TF1
    • Energy Regulatory Office (ERO) is completely autonomous from any Governmental Department to exercise economic regulation in the energy sector (Electricity, District Heating and Natural Gas) and defined its executive powers, duties and functions, primarily amongst which are: the conditions and criteria for issuing licenses to carry out energy activities; the procedures for granting permits for the construction of new generating capacities, gas networks, direct lines and direct pipelines, the criteria for regulating network and public supply prices and approving tariffs; the conditions of energy supply; monitoring the effective unbundling and development of competition in the energy sector; costumer protection, etc.
    • Ministry of Energy and Mining (MEM) among others responsible for energy sector strategy and policy (preparation and implementation), development of secondary legislation (including technical standards and norms), energy inspectorate, renewable energy sources and rational use of energy, coordination of donors and attraction of investments (“one-stop-shop”) – representing “State Energy Authority” according to MoU on REM;
    • Independent Commission for Mines and Minerals (ICMM) – representing “Independent Regulatory Agency” in the Mining sector;

    1 There are obstacles in implementation of its right

    Current Energy Issues
    • ERO has issued rules (secondary legislation):
    • Governance Procedures for Technical and Operational Codes for Kosovo Electricity System.
    • Rules under development - to be issued by ERO:
    • Rule on Authorization Procedures;
    • Rule on Administrative Measures and Fines.
    • License issued:
    • 3 Electricity Supply/Trade Licenses;
    • On continuation of the interim charging arrangements established between KEK JSC and KOSTT JSC.
    • Approval of Revenues for KEK J.S.C. and KOSTT J.S.C. for the Pricing review period 2007 – 2009
    • Grid Code, Metering Code and Governance Procedures for Technical and Operational Codes for Kosovo Electricity System.
    • On approval of the Transmission Capacity Allocation Procedure for KOSTT.
    • On approval of Amendments of Market Rules.
    • Tariff setting for district hating Termokos J.S.C. heating season 2007 – 2008
    • Approval of proposed new retail tariffs of KEK JSC.
    • Approval of proposed the transmission tariffs for KOSTT.
    • Amendment of Decision D_29_2006 of 21/12/2006 “On Allowed Revenues for KEK JSC and KOSTT JSC for the Pricing Review Period 2007-2009”, to adjust allowed revenues for KEK JSC.
    • Electricity standard codes
    • Reconnection agreement; Code of Conduct and Ethics of KOSTT JSC; Consent of agreement for purchase of losses in transmission issued by KOSTT J.S.C. and approved by ERO
    • Derogation of implementation the dispositions of articles of Grid Code and Metering Code for KOSTT J.S.C.
    • General Procedures on Customer Claims issued by KEK J.S. C. and approved by ERO
    • Temporary procedure for identification and prevention of unauthorized use of electricity issued by KEK J.S. C. and approved by ERO
    • Temporary procedure for reading and billing of households customers issued by KEK J.S. C. and approved by ERO
    • Tariff Setting for District Heating GJAKOVA JSC Heating Season 2007-2008
    • Implementation of incorporation process of energy enterprises (Electricity, district heating)
    • Assessments of generating capacities, especially with lignite as the fuel.
    • Promotion of EU Directives on energy efficiency and use of renewable sources.
    • Harmonization of the energy policy according to the European Union Directives.
    • Efforts to reduce the commercial and technical losses in the networks.
    • Preparations for integration into the Southeast European regional market and to achieve the obligations of Energy Community Treaty.
    • Applications of energy enterprises operating in Kosovo for operating licenses to be issued by ERO
    Contact

    Hamdi Mramori Street No 1, Prishtina – Kosovo, Tel.: (381 38) 247 – 615 ext. 101, Fax: (381 38) 247 620

    Web-page: http://www.ero-ks.org

     

      Laws

      Org. Chart of ERO

      Annual Report

      Grid Code

    • Code

      License

      Tariff Methodology
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