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Energy Investment Regularion Conference 2008, Budapest


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NEW CHAIRMAN AT THE NATIONAL ELECTRICITY REGULATION COMMISSION OF UKRAINE

Mr.  Valeriy Kalchenko was appointed by the Cabinet Decree #1304 of December 29, 2007 as the Chairman of the National Electricity Regulatory Commission of Ukraine (NERC).


NEW PRESIDENT AT THE ENERGY REGULATORY AUTHORITY, POLAND

Mr. Mariusz Maciej Swora was appointed to the president of the Energy Regulatory Office in Poland. 


NEW CHAIRMAN OF STATE ELECTRICITY REGULATORY COMMISSION

Mr. Mirsad Salkic will be the Chairman  of Bosnia and Herzegovina in the period July 1, 2007 – June 30, 2008.
NEW PRESIDENT AT THE NATIONAL NATURAL GAS REGULATORY AUTHORITY (ANRGN), ROMANIA

Mr. Gergely Olosz has become the New President of the National Natural Gas Regulatory Authority. 

NEW ERRA Members

On the 23rd May 2007 at the General Assembly in Istanbul, Turkey three new members were joining the Energy Regulators Regional Association. We are pleased to introduce our new members:

Jordan: Electricity Regulatory Commission

On the 23rd May 2007 ERRA General Assembly unanimously approved the membership application of the Electricity Regulatory Commission of Jordan for Affiliate Member status in the Energy Regulators Regional Association (ERRA).

ERC was established based on the decision of Council of Ministers and according to Electricity Law no.64 for the year 2002.

Main responsibilities of the Commission are to apply the government policy of restructuring the electricity sector on bases of equity & fairness. Provide Electricity services to more than one and a half million consumers. Ensure that electricity companies are providing high quality safe services. Provide electricity services with acceptable competitive prices. Overview, monitor& solve complains submitted by consumers. ERC objective is to mainly ensure applying the rights of consumers and to resolve any complain that may occur between the consumer & Electricity companies.

Kazakhstan: Committee of Protection of Competition

On the 23rd May 2007 ERRA General Assembly unanimously approved the membership application of the Committee of Protection of Competition Affiliate Member status in the Energy Regulators Regional Association (ERRA). Committee has been established in December 2004. Main responsibilities of the Committee are energy market monitoring, development of competitive wholesale and retail market of electrical energy and capacity, setting up incoming and outgoing barrier for the new subjects of the wholesale and retail market, to ensure the state policy regarding the development, protection of competition and limitation of monopolistical activity, controlling the observance of the antimonopolistical laws of the Republic of Kazakhstan.

Azerbaijan: Tariff Council

On the 23rd May 2007 ERRA General Assembly unanimously approved the membership application of the Tariff Council of Azerbaijan for Full Member status in the Energy Regulators Regional Association (ERRA). Becoming Full Member of the Association Tariff Council will have the possibility to learn more about the reforms in the field of tariff settings and energy services and also to participate in training and exchange programs for the Members of the Association. Tariff Council of Azerbaijan was established in order to improve the state control in the regulation over the subjects of natural monopoly market in the Republic of Azerbaijan. Main responsibilities of the Council are to ensure favourable conditions for the investments, stimulate the development of the industry, to increase the marketability of the local produced goods at the domestic market.


Current Energy Issues

Estonia: Energy Market Inspectorate (EMI)

Natural gas act amendment came into force. The main change was harmonization of gas act with EU directive concerning measures to safeguard security of gas supply (minimum requirements to guarantee the security of gas supply for household customer). Secondly the act was improved with balance system. Thirdly the Inspectorate has ex-post regulation to monitor the gas prices by a seller, who is an undertaking in a dominant position as defined in the Competition Act.

Hungary: Hungarian Energy Office (HEO)

The system of gas price subsidization has changed. From 1 January 2007 the support of substantial right has been abolished and a new, social support system has been introduced for residential customers (that is the responsibility of Social Ministry, so the Hungarian Energy Office is not involved in the legal procedure regarding gas price support system any more).

The charge for system use and the public utility prices have changed since 1 February.

Mainly the system operation charge decreased due to the fall of the tax-type rates that are built into the system operation charge. The other charges for system use (transmission fee, distribution fee, ancillary services) were increased. In aggregate, the charges for system use increased by an average of 0.1%.

The public utility wholesale price increased by an average of 9%, while the public utility end-user price increased by 4.8%.

Kazakhstan: Agency for Regulation of Natural Monopolies (AREM)

According to changes made on July 5, 2006, in the Law of the Republic of Kazakhstan «On Natural Monopolies», the Agency of the Republic of Kazakhstan for Regulation of Natural Monopolies got functions related to approval of standard technical losses, technical and technological norms of use of raw materials, materials, fuel, energy, norms related to staffing of subjects of natural monopolies.

Russian Federation: Federal Tariff Service (FST)

Changes in the competencies of the Federal Tariff Service of the Russian Federation effective as of November 2006:

The following functions were excluded:

Setting cap (minimum and/or maximum) levels of prices for electricity sold by generators in the wholesale electricity (capacity) market at non-regulated prices in the procedure and in cases specified by the Government of the Russian Federation;

Setting the value for cap levels of prices for electricity (capacity) in the free trade sector.

The following functions were added:

Formation and maintenance of the federal information registry of suppliers of last resort and areas of their operation;

Exercise of control over activities of the trading system administrator within its competence.

Adoption of new Rules of the Wholesale Electricity (Capacity) Market of the Transition Period, approved by Decree of the Government of the Russian Federation of August 31, 2006, and Rules of functioning of retail electricity markets during the transitional period of the power sector reforms, approved by Decree of the Government of the Russian Federation, made all subjects of the wholesale and retail electricity (capacity) markets to convert to new working conditions, including civil law relations and relations with state authorities.

Serbia: Energy Agency of the Republic of Serbia

Jan 1, 2007: Following the decision of the Council of AERS, the new eligibility threshold (limit of annual energy consumption needed for obtaining the status of an eligible customer) have been set on 3 GWh/year (equivalent to market opening of 21%), reduced from previous 25 GWh/year.

Jan 5, 2007: New Tariff Systems on price regulation came into force, by being published in Official Gazette of Republic of Serbia. Application of the Tariff System for oil and oil derivates transportation through product pipelines starts in January 2007. Tariff systems regarding electricity system are to be implemented by 1 April, and Tariff Systems on natural gas by 1st July.

Feb 8, 2007: The AERS adopted the Methodology for calculation of charges for connection to transport and distribution networks for natural gas. The new methodology enters into force as of 1st June 2007.

Ukraine: National Electricity Regulatory Commission of Ukraine

According to Decree of NERC of December 19, 2006, No.1672, from January 1, 2007, for natural gas for residential consumers differentiated (depending on the volumes of consumption) prices were approved.

By Decree of the Cabinet of Ministers of Ukraine of January 31, 2007, No.92 , Sergey Mikhailovich Titenko was appointed as a Chairman of the NERC of Ukraine (earlier he was already a Chairman of the NERC of Ukraine, during the period of April 2004 - February 2005).

 ERRA Press Release, December 5, 2007

NEW CHAIRMAN
of the Energy Regulators Regional Association
& Current Changes in the ERRA Presidium

Dr. Gabor Szorenyi, Director of the Hungarian Energy Office Vice Chairman of ERRA has stepped up to be a Chairman of ERRA in conformity with the ERRA Constitution

and due to the fact that the term of Mr. Yusuf Günay as a President of the Energy Market Regulatory Authority of Turkey has recently expired.

Dr. Gabor Szorenyi graduated in 1971 from theTechnical Universityof Budapest and started his business career at theHungarianPower Companies (MVM). He spent 23 years at MVM working oncoordination of R&D, energysystem planning,power plant investment, preparation of new market structure and privatisation, energyconservation, PRand related issues. In 1979 he received a doctorate degree from theTechnical Universityof Budapest and in1999 the degree of Master of Business Administration from the British Brunel University.Between 1992 and 94 he was president of the Board of Directors at the Vertesi Power Plant. SinceAugust 1994, Mr.Szorenyi has beenDeputy Director and since 2002 Directorof theHungarian Energy Office. Mr. Szorenyi is Chairman of the ERRA Licensing/Competition Commission

ERRA would like take advantage of this opportunity and to convey its sincere appreciation to Mr. Yusuf Gunay, the former ERRA Chairman.

In addition, due to recent changes in Russian legislation Mr. Sergey Novikov had to resign from his membership in the ERRA Presidium. He remains though Chairman of the Federal Tariff Commission of Russia.

Chairman Sergey Titenko left NERC Ukraine so he is no longer member of the ERRA Presidium.

Currently the Presidium lists the following members:

  • Gabor Szorényi, Chairman;
  • Mart Ots, Presidium Member;
  • Dan Ionescu, Presidium Member;
  • Slave Ivanovski, Presidium Member

The next ERRA Presidium Member elections are scheduled for the 2008 General Assembly (April 23, 2008)

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