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EU & WBs / Albania Energy Regulatory Updates

Presentation of Albanian Centre for Energy Regulation and Conservation - ACERC

Acerc is a think tank centre with a focus on the Albania energy market and its integration in Regional & IEM. The Acerc mission based on the in-depth knowledge of EU and Regional Energy Law and Policy and strives to provide aqualified contribution to the promotion of the liberalization and effective integration as well as efficient use of energy resources.

Acerc main activities consists in build-up collaborationand support to market players in the market researches such as the release of reports, articles and periodicals. Activity accompanied with the offering of the support in capacity building through national and regional seminars, trainings and conferences. Initiatives aims to enable in advocating in the energy sector promoting a forum called in Albanian School of Regulation.

For more visit us at the Official Website of Acerc | Albanian Energy Market - AEM Group in LinkedIn

Archive Review: The last dilemma of the reformation of Albanian energy sector by Dr Lorenc Gordani | Friday, August 23, 2013 (in Albanian)

AER Notice August 2015 Posted on Tue, September 01, 2015 09:02:34

Dilema e “fundit” e reformimit të sektorit energjetik Shqiptarë

Shkruar nga Av. Dr. Lorenc Gordani

Javët e fundi opinioni
publik është njohur gjerësisht me rezultate e raportit të 6-mujorit të fundit të
Bankës Botërorë ku për sektorin energjetik vlerësohet së fokusi duhet të jete
ai i plotësimit të reformës së tregut energjetikë. Njëkohësisht edhe dukë ju referuar
të njëjtit raport rikujtohet se të paktën vet procesi i ndarjes së kompanisë shtetërore
u plotësua më 2008. Si rrjedhim shihet e nevojshme të kuptohet cili është thelbi
i reformës që kërkohet të arrihet. Kuadër që në këtë shkrim do të mundohemi ta
vëmë nën dritën e analizës ekonomiko-juridike – ndoshta disi shkurtazi për kompleksitetin
që ajo mbartë – duke u mbështetur në profilet më kryesore dhe si rrjedhim mbi
logjikën e përgjithshme që e përçon.

Reformi i tregut
energjitikë në Shqiperi i ka fillesat e veta në kuadër të reformave – të njëkohshme
me ato të vendeve të BE-së – të gjysmës së dytë të viteteve ’90. Targetet e së
cilës në thelb synojmë rregullimin e çmimeve të energjisë sipas logjikave
ekonomike ose e thëne më qartë rregullimi i tij t’i kthehet tregu (art. 3 i direktivës
së elektriciteti dhe gazit). Për këtë se pari prodhuesi publikë duhet të jete i
lirë të shesë në platforma telematike
të tregut të brendshëm dhe atij rajonal në kohë reale (fillimisht për ditën e nesërme
ose Day-Ahead Market – DAM). Objektiv që bëhet i mundur duke hequr kufizimet
ligjore për furnizuesin publik për të blerë ekskluzivisht nga një gjeneratorë i
përcaktuar dhe nga ana tjetër me kufizimin e roli të tij me konsumatorët e vegjël.
Targete që duhet të përmbushen më transpozimin e plotë të Paketës së Tretë të Energjisë më afat të fundit 1
Janar 2015.

Profile këto të cilat siç kuptohet do të kenë implikime
jo pak të rëndësishme për të gjithë konsumatorët finalë. Në fakt për sa i përket
konsumatorëve jo familjarë, që
me reformën e dytë rregullatore të BE-së e më saktësisht më artikullin 21 të direktivës
2003/54/EC, është përcaktuar
njohja e plotë e së drejtës për të zgjedhur furnizuesin. Proces që mbetet të
përmbyllët tashmë me përfshirjen edhe të konsumatorëve familjarë brenda 1
janarit 2015. Pra, nëse për kategorinë e parë tashmë afati ka kaluar, masa të shpjeta
do duhet të ndërmerren për kategorinë e dytë nisur dhe nga vet gjerësia dhe
kompleksiteti i përbërjes së saj.

Në lidhje më këtë aspekt më 22 qershor 2013 u
plotësua me rregullat e funksionimit Komiteti Këshillues (Advisory Committee –
AC) për Procedurat e Zgjidhjes së Mosmarrëveshjeve. Më këtë hap, Komiteti u bë
plotësisht funksionalë dhe është i gatshëm për të nxjerre një opinion ligjor për çdo rast mos përmbushje të acquis communautaire që do t’i referohet
nga Këshillit Ministror (MC). Konkretisht në Maj 2013, u regjistrua edhe rasti
i parë (ECS-8/11) ku Sekretariati i Komunitetit të Energjisë (ECS) paraqiti kërkesën e arsyetuar Këshillit Ministror në
lidhje më legjislacionin e gazit të Bosnjë-Hercegovinës i cili do të vendoset
për t’ju kaluar apo jo AC-së nga Këshilli i Ministrave në mbledhjen e tij më 24
tetor të po këtij viti.

Në këtë prospektive, thelbësore bëhet të kuptuarit e motiveve që bëjnë që shtet pjesëmarrëse të kenë
vështirësi për t’u raportuar më përmbushjen e objektivave nga ata vet të
ndërmarra. Shkaqet të cilat janë të shumta dhe jo pak objektive dhe mund të përmblidhen
në aftësinë e kufizuar në governance
politike dhe financiare, sidomos në vendet e EJL, për ndërmarrjen e reformave
jo pak të vështira edhe për ato vende me më traditë në tregun e liberalizuar. Por
nga sa është vërejtur deri më tani jo në pak raste edhe konsumatorët e mëdhenj
kanë hasur vështirësi t’i përmbahen kësaj paradigme dhe ngulmojnë të mbeten në kategorinë
e rregulluar/mbrojtur. Madje, për të evituar këtë rikthim, ECS kërkoi që brenda
31 korrikut t’u dërgohet nga shtetet anëtare lista e plotë dhe e azhurnuar në
vazhdimësi e kompanive të konsideruara si të “çliruara/emancipuara”.

Njëkohësisht për sa i përket grupit të dytë të konsumatorëve
familjarë dhe atyre të vegjël çmimet e rregulluara të energjisë elektrike duhet
t’i përmbahen kuadrit të përcaktuar për qëllime të sigurimit të shërbimit universal
(art. 3 (3) i direktivës së energjisë elektrike) në përputhje me mbulimin e kostove.
Aspekte që nënkupton mbulimin e të gjithë shpenzimeve reale të furnizimit më energji
elektrike, duke përfshirë: kostot e prodhimit, koston për prokurimin nga
prodhimi i brendshëm ose importi, investimet e nevojshme/një normë të përshtatshme
fitimprurëse, kostot e shërbimeve të furnizimit dhe madje borxhet e këqija.

Njëkohësisht, edhe në filozofinë e tyre, të gjitha çmimet
e rregulluara duhet të jene të kufizuar në kohëzgjatje për atë që është e domosdoshme
për arritjen e objektivave të shërbimit publik të ndjekura dukë ju përmbajtur dispozitave
të nenit 3 (2) të Direktivës së Energjisë Elektrike (pra të definuar në mënyrë
të qartë, transparente, jo-diskriminuese, të verifikueshme dhe garantuese të barazisë së aksesit). Njëkohësisht Autoriteti Kombëtar Rregullator (në
bashkëpunim me Autoritetin e Konkurrencës) duhet të ngarkohet me kryerjen e raportimeve
vjetore të metodologjive dhe nivelin e çmimeve të miratuar për klientët finalë.

Pra në mbyllje, e gjitha e “shpëton sektorin” siç theksohet
edhe në raportin e BB, pasi në tërësi synon kthimin e tij në dinamikat e efeciencës
konkurrencës të tregut. Logjikë që fillon nga mbrojtja e kategorive të cilësuar
të dobëta (nëpërmjet përcaktimeve të qarta normative dhe adresimin reale të nevojave
të tyre ekonomike) dhe vazhdon deri në
forcimin – në përputhje me parashikimet
e acquis – të
qëndrueshmërisë së sistemit me parashimet mbi “Furnizuesit e instancës së fundit”. Pra siç ka treguar dhe eksperienca
e deritanishme, përqasja më logjikën
e tregut të këtyre nevoja i plotëson ato më së miri, por cila do të jenë kostot
më të cilën do të jemi në gjendje ta arrijë këtë, ndoshta është dilema vërtet e
fundit së cilës do të duhet t’i përgjigjemi tashmë edhe brenda kornizës së afateve
të mirë përcaktuara të 31 dhjetorit 2014.

Shënim: Ky artikull bene pjese ne
korpusin e pare te materialeve qe u përgatiten përpara lancimit te portalit te
ACERC. Kështu si shume materiale te tjera është publikuar ne mediat e kohës,
disa nga te cilat këtu me poshtë, dhe vene ne këtë portal vetëm rishtazi.

Ky
artikull mund te gjende ne ketë
pjese
te seksionit ne shqip te portalit zyrtare te ACERC.



New Auction Rules for Electricity Grids in WBs by Dr Lorenc Gordani | Tuesday, August 25, 2015

AER Notice August 2015 Posted on Tue, August 25, 2015 23:04:17

On
24 July 2015 the Coordinated Auction Office South East Europe (SEE CAO),
submitted a new set of Auction Rules Version 1.2 that got on 24 August 2015 the
Recommendation of the Energy Community Regulatory Board (ECBR). In the here
introduction, is necessary to briefly clarify that being a regional
coordination platform, the SEE CAO operates on a common set of Auction Rules.
Approval of Auction Rules for Transmission Operators participating in
coordinated SEE CAO auctions is responsibility of the relevant National Energy
Regulator (NRA).

However,
having in mind that the concept of a regional project requires harmonised
regulatory treatment across borders, the Energy Community NRAs mutually agreed
to develop a common approach for SEE CAO Auction Rules in the format of a
(legally non-binding) recommendation of the Energy Community Regulatory Board
(ECRB) to which NRAs would align their (legally binding) national Auction Rule
approval decisions.

Then,
the SEE CAO submitted a new set of Auction Rules (“version 1.2”) on 24 July
2015 asking for a coordinated regulatory position on the draft. The ECRB
carefully reflected in particular paying due attention to their compliance with
the Energy Community acquis communautaire, their consistency with the European
/ Energy Community Electricity Target Model, Regulation (EC) 1222/2015 and the
last (until now draft on) Network Code for Forward Capacity Allocation.

In
last, it is learn that ECRB has welcomes the draft SEE CAO Auction Rules
version 1.2 as important step for further regional integration and harmonisation
of cross border trade in electricity. The ECRB further has expresses its
appreciation for the efforts made in adjusting the SEE CAO Auction Rules to the
draft Harmonised Auction Rules discussed on EU level. Then ECRB in its opinion
has recommend NRAs to approve the new draft on Auction Rules.

The
here communication came within the framework of
the report on liberalisation and organised market in Albania, to be release in
the shortly upcoming period by ACERC. In cases of interest to the directly
cooperation as author with analyses or for any kind of involvement or support
as well as a partner, contact us at the info@albaniaenergy.org. For more keep
update with the EU & WBs / Albania Energy Regulatory Updates
or visit the Official Page of
ACERC
.



Regulatory Statement in Albania Electricity Sector by Dr Lorenc Gordani | Friday, August 21, 2015

AER Notice August 2015 Posted on Fri, August 21, 2015 19:19:11

The general purpose of the Regulatory
Statement, approved in Albania firstly by the decision no 12, dated 03.03.2009
of the Board of Commissioners of ERE, was to make possible the calculation of
tariffs of publicly owned generation, wholesale supply, distribution and retail
supply in accordance with the relevant tariff methodologies approved by the
ERE. In regard of regulatory periods, ERE decided that the ones from January 1,
2009 to December 31, 2009 is to be consider as a transitory period, during
which, there will be no change of current tariffs, as defined in the decisions
No 21, dated on February 14, 2008. This will enable the investor to evaluate
the situation within Electricity Distribution Operator (OSSH) and prepare the
application for review of new electricity tariffs not later than September 30,
2009, which will be effective on January 1, 2010.

Then, the first effective regulatory period
started by 1 January 31, and the second goes from 1 January to 31 to December
2011 and the third 1 January 2012 to 31 December 2014. The following regulatory
periods have to be by 3 to 5 years term. According to the above Tariff
Schedule, until June 30, 2014, the ERE have had to approve a Regulatory
Statement for the regulatory periods following 2014. For the avoidance of
doubt, the new Regulatory Statement shall continue to include the Compensation
Mechanism.

Due to the prolong dispute, with the Cez
Company, Albanian Power Regulator postponed the date of the determination of
new tariff of electricity by 1 January. Then on 26 December 2014, ERE-s Board
of Commissioners, after reviewing the application of OSHEE to determine the
electricity distribution tariff of the distribution system users for 2015 and
the report prepared by Prices and Tariffs Directory, decided, with starting
from 1 January 2015 the electricity retail sale prices for tariff customers will
be 9.5 Lek/kWh. The previous paying scheme predicted that householders who
consumed less than 300 kWh of electricity paid 7.7 Lek/kWh and 13.5 Lek/kWh.

The rates went up for business consumers
where the price was determine based on the level of connection, rather than
consumption. In regards to business users tariff, ERE announced that businesses
that use 35kV electricity will pay 9.5 Lek/kWh, businesses that use 20, 10, and
6 kV electricity will pay 11 Lek/kWh (except bakeries – 7.1 Lek/kWh) and those
using 0.4 kV electricity will pay Lek/kWh (except bakeries – 7.1 Lek/kWh).

ERE-s Board of Commissioners, on its
meeting, decided also that the tariff of electricity distribution service for
the distribution system users, with enters into force on 01.01.2015, in the
voltage level of 35 kV will be 1.5 Lek/kWh and the electricity distribution
service average tariff for the distribution system users from January 1, 2015
will be 4.79 Lek/kWh and the transmission tariff of electricity for TSO in
2015, will be 0.65 Lek/kWh.

In more, the electricity tariff for
wholesale public supplier in 2015 will be 3.0 Lek/kWh. The ancillary services tariff
for 2015 of KESH Company will be 158 Lek/kWh. Regard the application of Albanian
Power Corporation (KESH) to determine the electricity generation tariff for
2015 decided electricity generation tariff will be 1.45 lek/kWh. After
reviewing the report submitted to determine the price to sell electricity for
the licensees that generate electricity from new and existing hydro power
plants with installed capacity up to 15 MW, for the years 2013 and 2014,
decided, the unique price of selling electricity for the licensees will
respectively be 9.73 lek/kWh, 7.95 lek/kWh and 7.53 lek/kWh. KESH company shall
afford the financial effects of this decision.

This review come necessary due to the fact the MEI has issued 164
concession meant to build around 500 small, mid-size and big hydropower plants.
Some of the new utilities are already connected to the grid, while others are
in the construction phase. As a result, private production reached 0.916 TWh last
year and is expected to grow even more along 2015. Then the government see
necessary a more realistic formula for the purchase price of electricity
produced by a hydropower plant built through a a concessionary agreements. “The
new formula based on the average price of the Hungarian electricity exchange
(HUPX) plus a bonus of 10%.

Some of Albanian industry representatives argued the rise of power
prices for business consumers is wrong and will affect national economy in a
long run. In my opinion restructuring of the energy fee without making it burden
to until now subsidise consumer is rather hard job, but taking it to fair
parameters is above all a contribution to the future, a contribution to
investments in the energy system and energy security. Moreover, the reform
implementation was necessary in order to take a 150 ml USD loan from World
Bank. In more, it get a hand to KESH with the start by the last days of
December 2014 to liquidated an amount of 11 ml USD to small electrical energy
plants.

The
here communication came within the framework of
the report on liberalisation and organised market in Albania, to be release in
the shortly upcoming period by ACERC. In cases of interest to the directly
cooperation as author with analyses or for any kind of involvement or support
as well as a partner, contact us at the info@albaniaenergy.org. For more keep
update with the EU & WBs / Albania Energy Investments Updates
or visit the Official
Page of ACERC
.



Moldova publishes price statistics for the first time, Latest Energy Community News 20 August 2015

AER Notice August 2015 Posted on Thu, August 20, 2015 14:02:03

The Moldovan National Bureau of Statistics (NBS) has for the first time collected and published the prices of electricity and gas charged to the industrial end users and to households. Published on its website, the presentation of the prices follows the break down pursuant to Directive 2008/92/EC on Transparency of Electricity and Gas Prices Charged to Industrial End Users.

The publication of the price statistics marks a milestone in Moldovan statistical experts’ efforts to comply with the Treaty. The Secretariat highly appreciates the commitment shown by the Moldovan authorities and experts to fulfill their obligation under the Treaty in relation to data collection and dissemination.

NBS energy statistics
NBS monthly statistics
NBS price statistics



Albania has fulfilled 90% of EU priorities, justice reform to be approved by autumn, Posted on 26 July 2015 by Urim Shera

AER Notice August 2015 Posted on Wed, August 19, 2015 19:47:17

TIRANA, July 26 /ATA/ – Albania has fulfilled around 90% of a set of priorities set out by the European Union in view of opening the accession negotiations, European Integration Minister Klajda Gjosha told an interview with TV A1 Report.

Gjosha stated that Albania will complete a thorough judicial reform this autumn, thus fulfilling all requirements in order for the country to further advance on its EU-integration path. According to her, once these requirements are met, Albania will immediately seek opening of the EU accession negotiations.

“The requirements set out by the European Commission are crucial, especially regarding the justice reform, with opposition finally joining the ad-hoc parliamentary committee on this important reform. First phase of the reform has already completed and problems have been identified. Within the autumn we will have the full package of the justice reform, which is key to the opening of the accession negotiations. The fight against corruption also has progressed well. The European Commission’s report will be positive,” she said.

/a.g/u.sh/



The End of Monopoly Era on Electricity Distribution in Albania by Dr Lorenc Gordani | Monday, August 17, 2015

AER Notice August 2015 Posted on Mon, August 17, 2015 09:41:31

Albania from a long period is moving forward
to aligning its legislation with the EU acquis in the field of energy. The previous law no. 9072, date 22.5.2003 “On power
sector” has been revised more then 13 time in order to be further aligned with
the EU general principles and the acquis on energy sector. However, attracting of the investment and
entering of a private parties, rationale behind many of above measures and
actions taken, the outcome has remained far below the levels hoped.

Then, on 30th April 2015 was enacted
the new Law on the Electricity Sector no. 43 “On the Power Sector” which aim
the full compliance with the Third Energy Package of European Union and in
specific with the Directive 2009/72/EC dated 13 July 2009 “On common rules for the internal market in
electricity”. The new law foresee by first the restructure of the institutional
relationship between the three public power companies responsible for
generation, transmission and distribution (KESH, OST and OSHEE).

Specifically, regard the vertical unbundling of DSO, the new law
establish that the distribution system operator shall be unbundle and
independent from other activities not relating to the distribution of
electricity. Regard the timeline, the distribution system operator who carries
out this function before the entry into force of this law, shall fulfil the
obligation of separation not later than 31 December 2017.

In meanwhile in order to prove the separate
legal organization and operation from other activities, it shall maintain a
trade name and trademark, different from other names and trademarks of other
activities not related to the distribution of electricity. Then, the
distribution system operator must take measures to avoid creating uncertainty
amongst stakeholders regarding the name and trademark to use, in order to
demonstrate its unique identity, first of all in relation to the supply
company.

In same time, where the distribution system
operator in order to be independent in terms of organization and decision
making from other activities not related to distribution of electric power, shall
apply the conditions that the persons responsible for the management of the
distribution system operator must not participate in responsible structures of
the integrated electricity company, directly or indirectly, for the day-to-day
operation of the generation, transmission and supply of electricity.

In regard, appropriate measures must be taken
to ensure that the professional interests and skills of the persons responsible
for the management of the distribution system operator are taken into
consideration, ensuring that they are capable of acting independently in order
to fulfil the company’s tasks and objectives. Even the financial treatment of
the persons responsible for management and those responsible for oversight
bodies of the DSO controlled by the state will be adopted by the CoM. In more,
the activities of the distribution system operator shall be monitored by ERE,
which in cooperation with the competition authority shall mitigate potential
benefits the operator may acquire by distorting competition.

The all is complete by the general provisions
regard horizontal unbundling of the activity non relate with the energy sector.
The prevision on accounts unbundling state that any licensee shall, in their
internal accounting, keep separate accounts for each of the exercised licensed
activity, and for any other activity not related to energy sector, with a view
to avoiding discrimination, cross-subsidization and jeopardising of
competition. These accounts may be presented as consolidated, apart from cases
when carried activities relate to energy distribution or transmission.

In more revenues licensee obtains from any
right over the transmission or distribution system shall be specified in the
accounts of the licensee. Any licensee shall draw up, submit to audit and
publish their annual accounts in accordance with the effective legislation on
accounting and financial statements and the international accounting standards.
The audit shall, in particular, verify that the obligation to avoid
cross-subsidies among the licensed activities is respected.

Regard the operating of the grid of the distribution
of electric power, to the Distribution System Operator is assigned the owns of the
high, medium and low voltage electricity, for the purpose of allocating it to
its clients, with the division line from the transmission system. Among other is
state that the distribution system operator is responsible for the maintenance
and operation of safe system of electricity distribution in its licensed area.

In regard of the TPA is required that the
distribution system operator provide non-discriminatory electricity
distribution services to all electricity distribution network users, ensuring
the access to and use of the distribution networks of all applicants that meet
the requirements of the law. The distribution system operator monitors how
performance indicators in respect to the quality of the services and request
provided by technical regulations in force are observed.

To make the here above prevision effective in
attracting the investors, a sets of schedule action relate more specifically
with the reality of Albania are putted in place. The above measure are seeing
by October 2014, a launched of very important campaign to enforce criminal
penalties for electricity theft and disconnect service for non-payment of
bills. The criminal code has been revised to make power theft and damages to
the electricity system infrastructure punishable by imprisonment rather than
just an administrative offence. As a result, there were able to reduce electricity
distribution losses in October 2014 to 35%, compared with 45 percent in October
2013.

For 2014 as a whole, the distribution losses
amount to averaged 38 percent. The OSSHE aim to further reducing distribution
losses by about 5 percentage points per year, to 15 percent by 2019. The level
of distribution losses is monitored as an indicative target under the GoA
program with the IMF. Even the improving of collection rate bills that amounts
to 83.4 percent in January-October 2014 to 93 percent in 2019. The efforts in
this area are supported by a WB project that is financing a targeted
investments in priority areas to accelerate cash collection and reduce losses,
including metering, grid infrastructure, and upgrades to the commercial billing
and collection system.

The government also aim to ensure that
budgetary, no budgetary, and local government institutions make timely payment
of electricity bills. These efforts will be supported by a restructuring of the
state electricity companies with a view to improving efficiency. In specific,
the distribution company will have very shortly a performance management
contract. It is currently working with qualified expertise and is expect a
contract to be signed in mid-2015.

During the 2015-2017 period, will continue
the implementation of the program for development of the National Energy
strategy for the period 2015-2030. The priorities of the 2015-2017 period as
part of the long-term priorities of the government for the development of the
energy sector are connected to the developing a master plan for this sector.
This project is finance by a loan of USD 150 million from the WB, of which USD
93 million will be invested to strengthen the distribution network and several
substations, as well as supplement with electricity meters of customers, where
OSHEE Jsc will co-finance about USD 45.3 million for this project, as part of
the obligations arising from the loan agreement.

Then,
notwithstanding, the new law on the
electricity sector approved, constitutes a decisive step forward, it is only
the first one on a long path of the energy reforms in Albania. The adoption of
this law, it will open the road towards other legal acts, as in particular the
preparation of the new design of the Electricity Market and the further
liberalisation, with the aim to achieve an efficient and a well-balanced and
competitive market opening.
However, the liberalization of the energy
market and the introduction of private operators in the market is one of the
main challenges of the energy sector under European Union directives.

The here communication came within the framework of
the preparation of the analytic report, about Energy Market and Investments
Opportunities in Albania and WBs, to be release in shortly upcoming period by
ACERC. In cases of interest to the directly cooperation as author with analyses
or for any kind of involvement or support as well as a partner, contact us at
the info@albaniaenergy.org. For more keep update with the EU & WBs / Albania Energy
Investments Updates

or visit the Official Page of ACERC.



Regulatory Investment Risk Incentives in the WBs for PECI by Dr Lorenc Gordani | Sunday, August 16, 2015

AER Notice August 2015 Posted on Sun, August 16, 2015 13:54:33

On
17th April 2013, the EU adopted Regulation No 347/2013 on guidelines
for “TEN-E Regulation”. The TEN-E Regulation has been supplemented with new financial
instruments facilitating access to long term financing of eligible PCI by
providing debt facilities into projects. Then, on 14th October 2013,
the EC adopted a list of 248 key energy infrastructure projects, including also
third countries’ projects, among others such involving Energy Community
Contracting Parties (Albania, Bosnia and Herzegovina, Montenegro, Serbia and
Ukraine).

In
the same direction, on 6th October 2011, the EnC Ministerial Council
approved the establishment of a Strategy TF mandated to “elaborate a Regional Energy Strategy, including a special part on
Regional Power Development and Investment Plan aiming at promoting investments.

In the conclusions of its 33rd meeting of 18th June 2014,
the PHLG requested full incorporation of Regulation 347/2013 into the Energy
Community acquis at the Ministerial Council meeting in 2015.

As reported by the ACECR along the second week of
august 2015, the 13th
Ministerial Council Meeting on 16 October 2015, that will take place in Tirana,
Albania, have announced the following with the Decision D/2015/02/MC-EnC on the implementation of Regulation 347/2013.
Notwithstanding, in its Risk Related Regulatory
Investment Incentives for Projects of Energy Community Interest, Recommendation
Paper, from the April 2015, ECRB has consider necessary the elaborate of the
certain aspects of the regulatory treatment of PECI.

In
specific, ECRB notes that several
issues remain to be resolved by the EnC institutions in order to
establish a sustainable regional mechanism supporting infrastructure
investments in the region. The dynamics
of adjustment of the PECI list in synthesis state: currently it is not clear if
and when the PECI list will be reviewed when in EU the PCI list is renewed in
intervals of two years. Treatment
of the electricity generation projects in the second PECI list. Treatment of
CBA. Identifying applicable debt
and equity financing sources/mechanisms for PECI.

Then at its
meeting of 15th April 2014, the ECRB decided to develop a toolbox on
regulatory investment incentives to be used by the NRA depending on national
specificities and a common methodology for project risk evaluation. In regard,
it was followed with a rapid presentation of the national practices of risk
evaluation in the EnC CP and then with the recommendation on a common
methodology for risk identification. For concluding with a status review of
applicable investment incentives in the CP, highlighting the critical barriers
for introducing investment incentives and presents a toolbox which may be used
by NRAs to define applicable investment incentives.

As wide
accept the general “financial climate” for energy networks infrastructure
projects, is significantly influenced by the applicable regulatory framework.
Being subject of price regulation, electricity and natural gas transmission
companies reimburse their capital and operational expenditures based on pricing
mechanisms (price controls) developed by the NRA. Normally, well-designed price
controls should ensure recovery of all prudently incurred costs, including
investment projects costs, taking into consideration at least the average systematic risk of the TSO’s
investment portfolio via the regulator’s estimate of the cost of
capital, but also other risks depending
on the features of the applied model of price regulation.

The ECRB
recognizes that the PECI promoters may be exposed to additional
non-controllable risks that were not observed or accounted for by the NRA while
setting the price controls, and that such risks may adversely influence both
the project promoter’s decision to invest and the lenders perception of the
bankability of the project. Then the ECRB proposes the following approach to
risk identification and assessment to the Contracting Parties NRAs.

First, using
a transitional methodology for TSO’s portfolio risk identification and
assessment until implementation of the TEN-E Regulation in the Energy Community
law, which follows the ACER methodology
to the extent possible. In more using the ACER risk evaluation
methodology developed by ACER in line with Article 13.5 of the TEN-E Regulation
once the TEN-E Regulation is implemented by the Energy Community Contracting
Parties.

In regard
the Transitional methodology for risk
identification and assessment ECRB considers that the process of
identification and assessment of TSOs project portfolio should include the
following steps: Availability of information on project portfolio risks;
Identification of the nature of risks from a regulatory point of view; Risk
mitigation measures by TSOs; Assessment of systematic risk and definition of
cost of capital; Risk mitigation measures already applied by NRAs.

Regard a summary of national practices regarding risk mitigation,
regulatory measures and monetary reward or penalty schemes, in the
analysed markets, the rate-of-return, price cap and revenue cap regulation are
implemented. Rate-of-return regulation is normally performed on yearly basis,
while in the case of incentive based regulation the revenues or prices are
capped for different periods, namely three or five years.

In
specific on the electricity investment, are applied the following regulatory
systems: Rate-of-return regulation in four jurisdictions (Bosnia and
Herzegovina, Croatia, Serbia, Ukraine); Revenue cap in four jurisdictions (FYR
of Macedonia, Kosovo*, Moldova, Montenegro); Price cap in one jurisdiction
(Albania). And in natural gas, are applied the following regulatory systems:
Rate-of-return regulation in four jurisdictions (Bosnia and Herzegovina,
Georgia, Serbia and Ukraine); Revenue cap in three jurisdictions (Croatia, FYR
of Macedonia, Moldova).

The here
communication came within the framework of the preparation of the analytic
report, about Energy Market and Investments Opportunities in Albania and the
WBs, to be release in the shortly upcoming period by ACERC. In cases of
interest to the directly cooperation as author with analyses or for any kind of
involvement or support as well as a partner, contact us at the
info@albaniaenergy.org. For more keep update with the EU & WBs / Albania Energy
Investments Updates

or visit the Official Page of ACERC.



The Regime of the Direct Electricity Lines in Albania by Dr Lorenc Gordani | Sunday, August 16, 2015

AER Notice August 2015 Posted on Sun, August 16, 2015 00:23:59

Albania
has given a new law on the electricity sector that aim a fully aligned with
Directive 2009/72/EC dated 13 July 2009 “On common rules for the internal
market in electricity”. In regard of the “Direct Line” it establish that it means either an electricity line
linking an isolated generation site with an isolated customer inside or outside
Albania, or an electricity line linking an isolated generation site with a
customer outside of Albania, or an electricity line linking an electricity
producer and an electricity supply undertaking to supply directly their own
premises, subsidiaries and eligible customers.

The new Law on the Electricity Sector no.
43 of the 30th April 2015 recognise, in the article 33, all electricity
producers and suppliers within a given territory may supply their facilities,
branches and clients, via a direct line. No transmission or distribution
license shall be required for the operation of a direct line state the article
34m par. 5.

In regard, the direct lines constructed
for electricity export purposes by domestic producers to connect customers
outside the country, are subject to Council of Ministers’ approval, after the
given opinion from ERE. Instead, the direct lines constructed for the
connection of e internal market by domestic producer to connect customers
inside the country, or supply company which supplies its assets or eligible
customers, as well as lines connected to the transmission system for maintenance
purposes, are subject to responsible Ministry’s approval, after the opinion
given from ERE.

However, all the criteria and the procedures
for granting of authorizations for the construction of direct lines shall
approve by the Council of Ministers. The Minister authorizes the construction
of a direct line even in the case that applicant is refused access to the grid
for cases defined in Article 29 of this law, or in case a procedure for dispute
settlement has been initiated, as set forth under the Article 24 of this law.

Nerveless, the Minister may refuse to
grant its authorization for the construction of a direct line if the granting
of such authorization would obstruct the fulfilment of public service
obligations and customer protection, defined by the provisions of the law. The
explanations for such a refusal should be fully justifiable and are notified to
the applicant.

Important is the remind that the
possibility of supplying electricity through a direct line as referred above
shall not limit the right of a customer to enter into electricity supplying
agreements with another supplier of his choice. However the expenses for the
construction and operation of direct lines shall be incurred by the holder of
the authorization. As well as regarding the establishment, exercise and termination
of the rights related to the construction and operation of direct lines
encumbering third party property the provisions of the Civil Code shall be
applied.

Regard the technical and safety standards
in electricity sector: the technical rules for design, construction and
operation of the direct lines, including the rules of technical safety, are
developed by the ministry responsible for energy in cooperation with General
Directory of Standardizations and are approved with the decision of the Council
of Ministers. Design, construction and operation of the direct lines are
presumed that meet the applicable technical requirements and criteria when they
are in compliance with the respective harmonized Albanian standards (Article 34,
par. 3).

The here
communication came within the framework of the preparation of the analytic
report, about Energy Market and Investments Opportunities in Albania, to be release
in the shortly upcoming period by ACERC. In cases of interest to the directly
cooperation as author with analyses or for any kind of involvement or support
as well as a partner, contact us at the info@albaniaenergy.org. For more keep
update with the EU & WBs / Albania Energy Investments Updates or visit the Official
Page of ACERC
.



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