NARUC-ERRA Training in Energy Regulation and Tariff Development
November 5-8, 2007
Pristina, UNMIK/Kosovo
National Association of Regulatory Utility Commissioners (NARUC)
Energy Regulators Regional Association (ERRA) and
Sponsored by U.S. Agency for International Development (USAID)
American University in Kosovo
Gërmia Campus
Nazim Gafurri 21
10 000 Prishtina
(UNMIK POST) Kosovo
Tel: +381 (0) 38 518 542
Fax: +381 (0) 38 518 458
Internet: www.aukonline.org
Agenda
Monday, November 5: Energy sector reform and introduction to public utility regulation
Morning
08:15 – 09:00 Participants - Registration
09:00 – 09:15 Welcoming remarks
- Dr. Ali Hamiti, Chairman, Energy Regulatory Office, Kosovo
09:15 – 09:30 Welcoming remarks
- Mr. Michael Farbman, Mission Director, USAID Mission in Pristina (to be confirmed)
09:30 – 09:45 Purpose of training program. Role of USAID Mission/Pristina in Kosovo’s energy sector reform
- Mr. J. Michael Trainor, Senior Energy Advisor, USAID Mission in Pristina
09:45 – 10:15 Role of regulatory process in energy sector reforms
10:15 – 10:30 Q&A
10:30 – 11:00 Fundamentals of welfare economics and implications for energy regulation
- Dr. Besnik Bislimi, AUK Faculty (confirmed)
11:00 – 11:30 Coffee break
11:30 – 12:30 Key characteristics of regulatory commissions
(Autonomy-Authority-Accountability-Ability) - Roles, functions and institutional setting of regulatory commissions. Alternative operational schemes and assessment. International benchmarks of structures and status of European regulatory institutions.
- Regulatory independence from direct influence by the industry and political process.
- Political impact of regulatory decisions (tariffs).
- Decision-making independence and financial autonomy.
- Case study: How to build an independent regulator (practical implications)
Dr. Vidmantas Jankauskas and Mr. Joseph Witmer
12:45 – 13:15 Q & A
13:15 - 14:30 Lunch break
Afternoon
14:30 – 15:15 Issues and challenges in Kosovo’s energy sector (ex. Energy legislation, regulatory framework, authority, tariffs, monitoring, service quality, markets, etc.)
- ERO Representative
- KEK Representative
- KOSTT Representative
15:15 – 15:30 Roundtable respondent: Mr. Joseph Witmer
15:30 – 16:00 Open discussion following regulatory and industry problems; priority issues raised by participants
16:00 – 16:15 Coffee break
16:15 – 17:15 Recent EU energy policy development
- EU energy policy legislation and developments: drivers and directions
- Definitions of security of supply, role of regulator and industry
- Cost analysis of security of supply and competition
- Regional benefits to Kosovo
Mr. Rudi Hakvoort
17:15 – 17:30 Q & A
17:30 – 17:45 Wrap-up discussion of day themes
- Moderator: Dr. Vidmantas Jankauskas
Tuesday, November 6: Tariff setting and price regulation
Morning
09:00 – 10:15 The process and basic steps in setting regulated tariffs: an overview
- Emphasis on proper cost accounting on which to set regulated tariffs
- Utility finances and accounting issues
- Chart of Accounts (review of template)
Mr. Csaba Kovacs
10:15 – 10:30 Q & A
10:30 – 10:45 Coffee break
10:45 – 12:00 Revenue requirement
12:00 – 12:15 Q&A
12:15 – 13:30 Lunch break
Afternoon
13:30 – 14:45 Issues in regulated rate setting: Cost of capital, fuel, and depreciation. Pricing policies and distortions to various consumer groups
- Dr. Vidmantas Jankauskas
- Mr. Csaba Kovacs
- Mr. Joseph Witmer
14:45 – 15:00 Q&A
15:00 – 15:30 Coffee break
15:30 – 17:00 Moderated Group exercise: Rate setting
Different ways to assess the value of a utility company
(Processing a fictitious rate filing through tariff methodology, incorporating network losses, demand forecast, price regulation, feed-in tariffs )
- Mr. Csaba Kovacs and Mr. Joseph Witmer
19:00 – 21:00 Group Dinner
Wednesday, November 7: Price regulation (continued); Electricity markets, restructuring and regional market initiatives
Morning
08:45 – 10:00 Key issues in applying incentive price regulation
10:00 – 10:15 Q&A
10:15 – 10:30 Coffee break
10:30 – 11:30 Case study: Experience with price cap regulation in Hungary
11:30 – 11:45 Q & A
11:45 – 13:00 Moderated group exercise: Electricity exchange game
Discussion of problem areas and regional capacity constrains
- Dr. Peter Kaderjak and
- Dr. Vidmantas Jankauskas
13:00 – 14:15 Lunch break
Afternoon
14:15 – 15:30 Restructuring, reform, market liberalization and convergence
- Review of SEE market model and regional cooperation (with emphasis on EU requirements)
- Procedural and practical arrangements in market design
Dr. Peter Kaderjak
15:30 – 15:45 Q &A
15:45 – 16:00 Coffee break
16:00 – 17:15 Unbundling v. Vertical integration in the electricity sector: Key aspects, issues and policy guidelines
- Dr. Vidmantas Jankauskas and
- Mr. Joseph Witmer
17:15 – 17:30 Q & A
Thursday, November 8: Electricity markets (continued); Service quality regulation and public service obligations
Morning
08:45 – 09:30 Case study: From costs to regulated prices - electricity, gas and district heating in the Baltics
09:30 – 09:45 Q &A
09:45 – 10:30 Overview of service quality regulation
10:30 – 10:45 Q & A
10:45 – 11:00 Coffee break
11:00 – 12:00 Affordability of cost covering utility tariffs
Financial sustainability of utility operations by applying cost-reflective tariffs (consumers should not be protected by prices that do not cover utility costs)
12:00 – 12:15 Q & A
12:15 – 13:30 Lunch break
Afternoon
13:30 – 14:15 Non-payment and social support schemes for low-income customers
14:15 – 14:30 Q & A
14:30 – 15:15 Universal service obligations in liberalized markets
- Some consequences of private participation in the energy sector
- Customer protection in restructured market environment
- Supplier of last resort
Dr. Vidmantas Jankauskas
Mr. Joseph Witmer
15:15 – 15:30 Q & A
15:30 – 15:45 Coffee break
15:45 – 16:15 Wrap-up discussion: Emerging regulatory and industry issues in Southeast Europe
- Moderator: Dr. Vidmantas Jankauskas
16:15 – 17:15 Course Evaluations (written) and Suggestions for improvement
Final comments and farewell
Course Director
Materials
Day 1
Day 2
Day 3
Day 4
List of Participants
Bulletin
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