ERRA Events 2010

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Seminar Description

The ERRA New Commissioner Seminar provides a structured and relaxed discussion of seven outstanding topics highly relevant for newly appointed energy regulatory commissioners, presidents and chairmen. Each session takes a morning/afternoon of the course.  The presenters of the session briefly introduce the major topics of the given issues; then participants are invited to present their own country-specific questions and problems and then an informal discussion follows. (All the presenters are acting or former chairmen and commissioners of energy regulatory organizations.)

JUNE 16, WEDNESDAY

Morning. PRIVATISATION EXPERIENCES, SECURITY OF SUPPLY. 
The first part of the morning session is to be dedicated to the issue of privatization of the energy industry with primary focus on the privatization of distribution companies and regulatory involvement during the privatization process. In particular, it will deal with issues such as

• involvement of regulator in the pre-privatization process and in the assessment of the value of company assets to be privatized;
• evaluation whether the change in ownership results in measurable improvements in the efficiency of licensed companies and whether the regulator can share the benefits of efficiency improvements (e.g. the reduced costs network losses or improved collection rate) with final customers;
• experiences with the behavior of the regulated company as a result of privatization; how the privatization effects the investment activity of the regulated companies and how the privatization influences the service quality provided by regulated company for final customers;
• typical areas of post-privatization disputes, conflicts, litigations (if any) between the regulator and the regulated companies comparing them to the pre-privatization time.

The second part of the morning session is supposed to give an overview on regulation & energy supply security. Discussions will include regulatory roles in a broader sense and the impact of regulatory behavior on investment decisions, gas dependency & security of supply. companies).

Afternoon: RESTRUCTURING THE ELECTRIC POWER INDUSTRIES. PRIVATISATION
The second part of the morning session is to cover the security of supply issues detailing the followings:

• A brief introduction of the global issue: future energy balances, resources and access;
• Issues of system adequacy and reliability in electricity, huge investment needs that are required in new generation and infrastructure capacity as well as meeting the RES objectives and their transformation regarding electricity;
• Complexities in the value chain and their cross border implication regarding the gas markets. Uncertainties as to how much import gas is to be needed for the period up to 2020 and beyond. Investment needs to maintain or even extend the supply potentials of Russia at the time and the size when markets will need them. New projects in infrastructures, implementation of which is facing difficult geopolitical dimensions;
• Outcome for regulators considering the energy challenges ahead as to sustainability and supply security, questions could be asked about extending regulatory roles and mandates

Finally, participants will be asked to introduce their organizations briefly and point out some of the challenges facing their commissions. At the very end of the day, the agenda will allow for discussions on the main themes of the day.

 
19:00                             Group Dinner

JUNE 17, THURSDAY

Morning. ATUTHORITY, AUTONOMY AND ACCOUNTABILITY OF TH E REGULATOR. COMMISSION RELAQTIONSHIP WITH OTHER AGENCIES
This session raises all the relevant organizational and management issues that new commissioners are to face when managing their institution and their job. Issues include: authority/autonomy/accountability of the regulator; overview of the decision making process; managing the Commission and relationships with the Government, Parliament and the public; how to deal with the government/parliament/public/companies. It covers commission relations with license holders including licensing, monitoring, enforcement and data collection.

Afternoon. PRICE REGULATION IN THE ENERGY SECTOR
This session discusses the basic principles of and issues related to the most important regulatory task: energy price and tariff regulation. Issues cover economic principles of price regulation, rate base determination, principles for tariff setting, price adjustment regimes including rate of return but also incentive price regulatory schemes. The problem of low income consumers discussed in its relation to energy pricing. The aim of this session is to equip the participants with the concepts, objectives and techniques of designing and evaluating rate structures in the energy sector which guarantee fair rate of return for the regulated companies; increase of productivity and efficiency of regulated companies over time; fair and reasonable tariffs for end users; a transparent tariff setting procedure.

JUNE 18, FRIDAY

Morning. ELECTRICITY MARKETS; REGULATION OF RENEWABLE ENERGY
Liberalization of the electricity sector has been a very important development worldwide in the past two decades, and is still an ongoing process in many transition countries. This session aims to provide an introduction to the most important economic issues surrounding the creation and successful operation of electricity markets. The session will focus on the following issues: demand and supply of electricity, wholesale markets and market power.

Afternoon. REGULATION OF RENEWABLE ENERGY- CONT’D
While the authority of implementing environmental regulations remains mostly the job of environmental regulators, energy regulators have to understand their impacts and the new regulatory challenges they are to face. Energy sector regulators are also expected to be active in designing tariffs, network access related regulations and develop certification regimes for RES producers in order to promote the dispersion of renewable energy technologies.