
Licensing/Competition Committee Meeting
October 11-12, 2004
Co-Hosted by
Co-Hosted by the
Albanian Electricity Regulatory Authority (ERE)
Energy Regulators Regional Association (ERRA)
National Association of Regulatory Utility Commissioners (NARUC)
Sponsored by
U.S. Agency for International Development (USAID)
Bulletin The Energy Regulators Regional Association (ERRA) organized the Licensing/Competition Committee meeting on October 11-12, 2004 in Tirana, Albania. The meeting was co-hosted by the Albanian Electricity Regulatory Authority (ERE), the Energy Regulators Regional Association (ERRA) and the U.S. National Association of Regulatory Utility Commissioners (NARUC), with funding provided by the U.S. Agency for International Development (USAID). During the fall meeting of the Licensing/Competition Committee, representatives from 17 ERRA member organizations participated; in addition 2 US and 1 Italian regulator were presented. The agenda of the two-days meeting focused on three major topics: Public Service Obligations, Stranded Cost Compensation Methods, and Security of Supply. The morning session of the first day was devoted to discussions on the Public Service Obligations which were highlighted from two respective points of view: Mr. Roberto Malaman, Director of Quality and Consumer Affairs, Autorità per l'energia elettrica e il gas, Italy, presented the EC relevant Directives, the legal framework, also he made an excellent comparison of PSOs in different European countries based on CEER Survey. PSOs in ERRA countries were delivered by Mr. Victor Teodoroiu, ANRE/Romania, Mr. Kestutis Zilenas, NCC/Lithuania, Ms. Ligia Medrea, ANRGN/Romania, and Ms. Natasa Hudcovicova, RONI/Slovakia.After the structured analysis of PSOs, Dr. Gabor Szorenyi (Director, Hungarian Energy Office, Hungary), Chairman, Licensing/Competition Committee, presented the issue of the Stranded Cost Compensation Method, highlighting the history of long-term Power Purchase Agreements (PPA) in Hungary, chronologically reviewing events in line with Stranded Cost, the Capacity Auctions, and European Commission Competition State Aid. Following, Dr. Szorenyi briefed the Committee on the activities of the Council of European Energy Regulators (CEER) and the European Regulators Group for Electricity and Gas (ERGEG). Tuesday morning started with conventional country updates on recent developments in ERRA member countries in the field of licensing and competition. Apart from discussions of the workplan for 2005 and future committee work, time was dedicated to the issue of Security Supply (SoS) in the US, which was introduced by Mr. Jerry Webb, Director of Gas, Engineering and Water at the Indiana Utility Regulatory Commission. Two specialists from the Hungarian Energy Office, Ms. Zsuzsa Tassy and Mr. Attila Bakonyi presented the results of the questionnaire on the Evaluation of the Situation of Security of Supply in ERRA countries. The in-depth analysis of replies from 20 countries showed variations in the trends of capacity and demand, regulatory climate on the SoS, and market concentration. The study also dealt with the emerging issue of technically worn down plants and networks and the urging need to invest into generation nationwide. It was a common understanding of the committee members that the evaluation should be updated annually and the final version of the analysis will be complied as an Issue Paper. Finally, Dr. Szorenyi talked about the Hungarian Power Generation Sector in this presentation titled: Alternative measures for assuring sufficient capacity – Element of Security of Supply focusing on the market driven investment. By Viola Dozsa, ERRA Program Manager
Monday, October 11, 2004 09:00 Welcoming Comments 09:15 Introduction of new Committee Members and NARUC Commissioners 09:25 Public Service Obligations - Council of European Energy Regulators 10:30 Coffee break 10:45 Public Service Obligations in the United States 11:45 Public Service Obligations in ERRA countries 12:30 Lunch 14:00 Public Service Obligations in ERRA countries Potential presentation during the 2005 ERRA Investment Conference 15:00 Stranded Cost Compensation Method: Status of the EC DG Competition Approval Procedure
15:45 Information on the issues discussed by the CEER in different committee works
16:30 Meeting Concludes 16:45 Tour of the City 20:00 Group Dinner
Tuesday, October 12, 2004
09:00 Roundtable Discussions: Licensing/Competition Updates (Each Committee Member will be requested to give a max. 5 min. verbal update on the recent developments in their country in the field of licensing and/or competition) 10:00 Discussion on Daily, Routine Regulatory Issues Important for Newly Established Regulators – Informal Exchange of Information, Ad Hoc Questions
10:30 Licensing/Competition Committee Workplan 2005 11:30 Security of Supply Issues in the US
12:30 Lunch 14:00 Security of Supply: Analytical Evaluation of the Questionnaire prepared by HEO
15:00 Analyses of some Aspects of the Questionnaire related to Security of Supply(Regulatory incentives for new investment (generation network)
15:45 Coffee break 16:00 Update on Recent and Future ERRA Activities
16:45 Discussion of the Potential Development of the Future Committee Work
17:00 Meeting Concludes
Albania Chairman Peter Djema Armenia Croatia Estonia Georgia Hungary Ms. Zsuzsanna Tassy, International Affairs Mr. Attila Bakonyi, Advisor Latvia Lithuania Macedonia Mr. Daniel Georgievski, Legal Expert Moldova Poland Romania Russian Federation Slovakia Turkey Ukraine
Romania United States of America Mr. Jerry L. Webb, Director, Gas, Engineering and Water
Autorità per l'energia elettrica e il gas Albanian Electricity Regulatory Authority Commissioner Adriatik Bego Ms. Eda Gjergji, Chief, Foreign Relations Section Energy Regulators Regional Association Ms. Katalin Szarvas, Program Assistant Conopask_PSO in US_LicCom_eng[1].pdf
Conopask_Public Service Obligations_US Experience_LicCom_eng.pdf
Manicuta_Public Service Obligations_LicCom_eng.pdf
Szorenyi_Ceer Ergeg activities_LicCom_eng.pdf
Szorenyi_Stranded Cost Method_LicCom_eng.pdf
Zilenas_Public Service Obligations_LicCom_eng.pdf
Szorenyi_Security of Supply_LicCom_eng.pdf
Bakonyi_Tassy_Evaluation of Situation of SoS_LicCom_eng.pdf
Hudcovicova_PSO in Slovakia_LicCom_eng.pdf
Webb_Generation Security_LicCom_eng.pdf
Medrea_PSO in Romania Gas_LicCom_eng.ppt
Malaman_ PSO_LicCom_eng.ppt
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