October 3, 2000
Riga, Latvia
Regulatory issues in Common Baltic Electricity Market
Agenda
09.00 Opening of Session:
Juris Kristapsons, Director of High Voltage Network
Aigars Melko Vice President of Latvenergo
Janis Dauskans Chairman of Latvian Energy Regulatory Board
09.10-09.15 Introduction of participants - Moderator Juris Ozolin-
Over-view of legislation and institutional building of Countries - structure of Industry and Regulatory framework, status of TSO's , access rules and pricing use of Systems, Trading arrangements, information availability
09.15 - 09.30 Estonia
Regulator Estonian Energy Market Inspectorate Deputy director general Erik Kaldas
TSO Eesti Energia AS National Grid - Raine Pajo
09.30 - 09.45 Lithuania
Regulator State Commission on Energy and Prices Chairman Vidmantas Jankauskas
TSO AB Lietuvos Energija, Chief of Dispatch Centre Ramunas Bikulcius
09.45- 10.00 Latvia
Regulator Energy Regulatory Counsel, Acting Chairman Janis Dau?kans
TSO High Voltage Network, Head of Dispatch Centre Varis Boks
Configuration of Transmission System Operators and Transmission and Distribution split
10.00.-10.10 Formulation of problem- Juris Ozolins
10.10.- 10.30 Estonia: Regulator Energy Market Inspectorate, Deputy Director General Erik Kaldas
TSO Eesti Energia AS National Grid , Mart Landsberg
10.30- 10.45 Coffee break
10.45 - 11.05 Lithuania
Regulator State Commission on Energy and Prices, Chairman Vidmantas Jankauskas
TSO AB Lietuvos Energija, Chief of Dispatch Centre Ramunas Bikulcius
11.05 - 11.25 Latvia
Regulator, TSO High Voltage Network, Director Juris Kristapsons
Cost allocation and pricing
11.25 - 11.35 Estonia Regulator Energy Market Inspectorate, Deputy Director General Erik Kaldas
11.35 - 11.45 Lithuania Regulator State Commission on Energy and Prices, Chairman Vidmantas Jankauskas
11.45. - 11.55 Latvia Regulator Energy regulatory Council, head of Information Division Dace Bite
Estonia TSO Eesti Energia AS National Grid, Raine Pajo
12.00 - 13.00 Lunch
Access to Systems, Generators and Loads, metering, data collection settlement, dispatch centres
13.00 - 13.20 Estonia
Regulator Energy Market Inspectorate, Deputy Director General Erik Kaldas
TSO Eesti Energia AS National Grid , Mart Landsberg
13.20 - 13.40 Lithuania, Regulator State Commission on Energy and Prices, Chairman Vidmantas Jankauskas
TSO AB Lietuvos Energija, Chief of Dispatch Centre Ramunas Bikulcius
13.40 - 14.00 Latvia, TSO High Voltage Network, Head of Dispatch Centre Varis Boks
14.00 - 14.30 Discussions, comments
14.30 - 14.45 Coffee break
Qualified Customers, threshold and data collection
14.45 - 15.00 Estonia
Regulator Energy Market Inspectorate, Deputy Director General Erik Kaldas
TSO Eesti Energia AS National Grid, Raine Pajo
15.00 - 15.15 Lithuania
Regulator State Commission on Energy and Prices, Chairman Vidmantas Jankauskas
15.15 - 15.30 Latvia
Regulator Energy regulatory Council, head of Information Division Dace Bite
TSO High Voltage Network, Head of Dispatch Centre Varis Boks
Conclusions and recommendations
Participant List
Aistija Zubaviciute, National Control Commission for Prices and Energy LT aistija.zubaviciute{.}regula.is.lt
Aivar Tihane, DC Baltija, atihanedc.riga.lv
Aleksandrs Oss, Ministry of Economy, Energy Departament LV, OssA{.}lem.gov.lv
Andres Doernberg, US Agency for International Development, adoernberg{.}usaid.org
Andris Cakuls, JSC Latvenergo, cakuls{.}energo.lv
Anzelmas Bacauskas, AB Lietuvos Energija, anbac{.}lpc.lt
Artis Vitins, High Voltage Network, vitins{.}ast.energo.lv
Charles Zimmermann, Nexant Inc., cz{.}bechtel.tl.lv
Dace Bite, Latvian Energy Regulatory Board, dace{.}erp.riga.lv
Dina Grube, WB Latvia Office, dgrube{.}worldbank.org
Erik Kaldas, Estonian Energy Market Inspectorate, erik.kaldas{.}eti.gov.ee
Erin Skootsky, National Association of Regulatory Utility Commissioners, eskootsky{.}naruc.org
Imants Zviedris, High Voltage Network, zviedris{.}ast.energo.lv
Janis Dauskans, Latvian Energy Regulatory Board, janisd{.}erp.riga.lv
Janis Labanovics, Latvian Energy Regulatory Board, janisl{.}erp.riga.lv
Janis Rekis, Latvian Development Agency, janis.rekis{.}lda.gov.lv
Juris Kristapsons, High Voltage Network, kristapsons{.}ast.energo.lv
Juris Ozolins, Latvian Development Agency, GridCode{.}lda.gov.lv
Karlis Brinkis, DC Baltija, kbrinkis{.}dc.riga.lv
Kaspars Grava, High Voltage Network, grava{.}ast.energo.lv
Maija Martinsone, DC Baltija, maija{.}dc.riga.lv
Mart Landsberg, Estonian National Grid, mart.landsberg{.}pv.energia.ee
Raine Pajo, Estonian National Grid, raine.pajo{.}pv.energia.ee
Ramunas Bikulcius Lietuvos Energija LT ramunas.bikulcius{.}lpc.lt
Valdis Kregers, Latvian Development Agency, valdis.kregers{.}lda.gov.lv
Varis Boks, High Voltage Network LV, boks{.}energo.lv
Vidmantas Jankauskas, National Control Commission for Prices and Energy, vidmantas.jankauskas{.}regula.is.lt
Virgilijus Zukauskas, AB Lietuvos Energija, vzukauskas{.}lpc.lt
Voldemars Lapinskis, High Voltage Network LV, lapinskis{.}energo.lv
Zaneta Salmane JSC Latvenergo, salmane{.}energo.lv
Minutes
A. Over-view of legislation and institutional building of Countries - structure of Industry and Regulatory framework, status of TSO's , access rules and pricing use of Systems, Trading arrangements, information availability.
B. Configuration of Transmission System Operators and Transmission and Distribution split.
C. Cost allocation and pricing
D. Access to Systems, Generators and Loads, metering, data collection settlement, dispatch centres
E. Qualified Customers, threshold and data collection
Findings and conclusions.
1. Energy Acts are passed in all three Baltic Countries, but implementation - institutional building and drafting of secondary legislation is still on- going process. Despite similarities in understandings on industry structure there are different views on "right" industry structure enable electricity trade. More common are Regulators opinion. Lithuanian Energy Act is limiting interpretations on end structure.
2. According legislation of all three Countries Transmission System Operators are responsible for Electricity Market infrastructure - metering collection and data provision for market participants. Metering and data collection systems must be substantially improved but same tame current status is not remarkable obstacle to start electricity trade between generators and eligible customers.
3. There are established threshold for eligible ( qualified) customers QC starting from January 1st 2001:
- 20 GWh/y Estonia;
- 20 GWh/y Lithuania
- 40 GWh/y Latvia - proposal, no Government approval
4. Regulated Third Party Access approach has been exploited in Lithuania and Latvia, negotiated TPA - most likely in Estonia.
5. Access and Use of Systems Rules still under development in all countries, but there is strong intention to make them public till end of the 2000.
6. Transmission system tariff is published in Latvia ( December 1999) and now is being revised. Indications on Tariff size are possible get in Estonia and Lithuania.
7. Transmission & Distribution split ( TDS ) is still widely discussed in all three countries. Implicitly TDS is one of most influential factors when fixing Transmission and Distribution tariffs. In Latvia and Estonia overwhelming view is that 110 kV transformers belongs to Transmission System. Lithuania's belief is Transmission System without 110 kV transformers.
8. As lover Transmission Tariff as lover burden to electricity trade. But the same time equal tariff in all three countries is not obligatory prerequisite for trade in Common Baltic Electricity Market Area (CBEMA).
9. To facilitate electricity trade in CBEMA cross-border tariffs are not desirable. It is the best way to design one Trading Area.
10. For time being participants of the meeting are tending to support zero payment for generator's access. But more estimates should be made to re-balance payments between generators and loads.
11. It is essential to start harmonisation process on main System Access and pricing principles in which Regulators and TSOs must be involved.
12. To avoid dumping generation inside CBEMA cross-border tariffs for out- side CBEMA generation should be carefully considered before opening markets even in individual country.
13. To use momentum and implement recommendation 10. , it is reasonable continue meetings in same composition, but more deeply discussing problems and solutions to establish fair electricity market and not endanger System Security.
14. Proposal of USAID and NARUC to assist Baltic Regulators and Transmission System Operators in Harmonisation Process is desirable and very timely. NARUC is proposing establish working group in which TSOs and Regulators will delegate 1 or 2 persons from each institution. TSOs will be evaluating proposal and if answer will be positive, NARUC may provide funding for kick-of meeting at end November. Meeting is aim to agree co-operation principles between Regulators, TSOs and USAID&NARUC in 2001.
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