23 ERRA member organizations participated in the fall meeting of the ERRA Licensing/Competition Committee, namely energy regulators from Albania, Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Estonia, Georgia, Hungary, Kazakhstan, Kyrgyz Republic, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Romania (ANRE), Russian Federation (FTS), Slovakia, Ukraine. Apart from the Full Members, Associate Member Organizations were also represented from Romania (ANRGN), Russian Federation (IAREC), UNMIK-Kosovo In addition, NARUC delegated 2 US regulators and a staff person from the Office of Energy Regulation of the Netherlands took part in the meeting as well. ERRA was happy to host some 20 regulators representing different regions of the Russian Federation

The agenda of the two-days meeting focused on four major topics: (1) The Supplier of Last Resort, (2) Elements of Effective Cross Border Trade, (3) Monitoring, Measuring and Assuring the Competitiveness of the Energy Market, and (4) Market Operators: Trading (Market) Rules, Objectives of the Regulator Regarding the Market Rules, Conditions of Effective Wholesale Markets.

The morning session of the first day started with the Welcoming Comments by Chairman Sergey Novikov (Federal Tariff Service of the Russian Federation), and Dr. Gábor Szörényi (Director, Hungarian Energy Office; Chairman, Licensing/Competition Committee). After the warm welcome Chairman Gabor Szorenyi introduced the new Committee Members and NARUC representatives: Mr. John Levin and Mr. Jeffrey Conopask, also the representatives of FTS and IAREC introduced themselves.

The first part of the meeting was devoted to the introduction of the Development of the Unified Informational – Analytical System of the FTS by Mr. Gorkin and Mr. Ananin, followed by the issue of Licensing/Competition Committee Meeting Work Plan for 2006.

The Hungarian practice regarding Necessary Elements of Effective Cross Border Trade was introduced by Gabor Szorenyi.

Later on, an ERRA Survey was introduced about: Procedures for the Appointment of Last Resort Supplier – Definitions, Guiding Principles by Ms. Catherine Connors, (Partner, Pierce Atwood). The Netherlands’s Experience with the Issue of Last Resort Suppliers by Ms. Laura van den Ouden (Office of Energy Regulation, the Netherlands) was the last presentation of the day, followed by questions and discussion.

After a great working dinner, with fresh energy the second day was opened with the topic of Market Operators: Trading (Market) Rules, Objectives of the Regulator Regarding the Market Rules, Conditions of Effective Wholesale Markets. Ukrainian Practice was introduced by Commissioner Lyubov Goncharova (NERC, Ukraine), which was followed by Mr. John Levin’s (Assistant Counsel, Pennsylvania PUC) presentation regarding The US Practice: Regional Transmission Organizers’ (RTO’s) Governance (Independence, Access to Confidential Information); Effective Competition in the Wholesale Market, New Organization of the PJM Market. As for the raised question of the Proposed Model Changes from the Hybrid Model to the Directions of Effective Wholesale Market by Dr. Gabor Szorenyi, gave the Committee an overview about the Hungarian experience.

The next issue was Monitoring, Measuring and Assuring the Competitiveness of the Energy Markets. There was a questionnaire prepared and evaluated by Commissioner Maria Manicuta (Romania, ANRE) regarding this important topic. After the evaluation and discussion of the survey, Dr. Jeffrey Conopask (Senior Economist, Public Service Commission of the District of Columbia) gave a presentation from the US perspective.

The second half of the day was devoted to another comparative survey, namely about Measuring the Quality of Distribution and Supply- Introduction of the Results of the Questionnaire, presented by Mr. Kestutis Zilenas (Lithuania). Here the committee could also learn about the US Practice in connection with the same question introduced by Dr. Jeffrey Conopask.

Ms. Krisztina Kasza gave the committee members an Update on Recent and Future ERRA Activities, including some future plans, new pilot training concepts. The last but very important issue was a Discussion on potential work development of the Committee in the future, giving suggestions for the 2006 Workplan.

For presentations please visit: http://www.erranet.org/Events/ERRA/2005/Licensing_Russia#3

By Aniko Kiss, ERRA Secretariat

http://www.regulator.kz/word/mezhdunarod_otnoshenia/erra.doc

http://www.rosteplo.ru/news.php?zag=1126244605

www.fstrf.ru/press/releases/120

09:00 Market Operators: Trading (Market) Rules, Objectives of the Regulator Regarding the Market Rules,

Conditions of Effective Wholesale Markets

• Ukrainian Practice by Commissioner Lyubov Goncharova, National Electricity Regulatory Commission of Ukraine
• The US Practice Regional Transmission Organizers’ (RTO’s) Governance (Independence, Access to Confidential Information); Effective Competition in the Wholesale Market, New Organization of the PJM Market by Mr. John Levin, Assistant Counsel, Pennsylvania Public Utility Commission
• Proposed Model Changes from the Hybrid Model to the Directions of Effective Wholesale Market by Dr. Gabor Szorenyi, Director, Hungarian Energy Office
• Questions & Answers

10:45 Coffee break

11:00 Monitoring, Measuring and Assuring the Competitiveness of the Energy Market - Introduction of the Results of the Questionnaire

• Commissioner Maria Manicuta, National Electricity and Heat Regulatory Authority, Romania
• The US Practice by Dr. Jeffrey Conopask, Senior Economist, Public Service Commission of the District of Columbia, USA
• Questions & Answers

12:30 Lunch

14:00 Comparative Survey: Measuring the Quality of Distribution and Supply- Introduction of the Results of the Questionnaire

• Mr. Kestutis Zilenas, National Control for Prices and Energy, Lithuania
• The US Practice by Dr. Jeffrey Conopask, Senior Economist, Public Service Commission of the District of Columbia, USA
• Questions & Answers

15:30 Coffee break

15:45 Update on Recent and Future ERRA Activities

• Ms. Krisztina Kasza, Program Director, ERRA Secretariat

16:00 Discussion on potential work development of the Committee in the future

• Approval of Workplan for 2006
• Classification of the duties and responsibilities among Committee members

16:45 Discussion on Daily, Routine Regulatory Issues Important for Newly Established Regulators – Informal Exchange of Information, Ad Hoc Questions[1]

• Regulatory Practice on New Generation Licensing/Permit Granting/Authorization/New Capacity Tendering Procedure – raised by Ms. Merita Kostari of the Kosovo Energy Regulatory Office

17:30 Meeting Concludes