The organizational structure that defines the distribution of positions and authorities

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1 Structure of the Public Services Regulatory Commission of the Republic of Armenia The organizational structure that defines the distribution of positions and authorities Arsen Muradyan RA Public Services Regulatory Commission June 14, 2010 Yerevan, Armenia

2 The public management in the sector of regulation of public services was established in the 90s, when Armenia appeared in very hard social conditions, after the proclamation of independence. While experiencing the mentioned social and economic conditions the sectors of regulation of the Commission needed programmatic reforms to be implemented by the Government, which could create a possibility to improve the existing situation and establish bases for further cooperation. It was necessary to adjust the main directions of policy of the Government in the given sector, to delimit the frameworks of management and regulation, to define the main principles of public regulation and the methods for the implementation thereof, to organize the legal framework for the companies operating in the given field, to state the clear and justified principles of tariff policy and the methodology for the calculation of tariffs.

3 Depending on the necessity of expedient and fundamental solution of the number of aforementioned issues, the President of the Republic of Armenia ordered the establishment of Energy Commission of the Republic of Armenia, on the 3 rd of April The Chairman, the Deputy Chairman and the three commissioners were nominated by the corresponding order of the President of the Republic of Armenia, on the 15 th of April The Energy Commission of the Republic of Armenia is a regulating body, which operates in accordance with the corresponding legislation (the RA Law on Energy), and other regulations, and is independent in its actions. The regulated sphere of public services: The sector of energy that includes the systems of electric power, heating supply and gas supply.

4 STRUCTURE OF THE COMMISSION 1. The Energy Commission implements the functions assigned thereto by means of the following structural sub-divisions: Department of financial and economic analysis Department of technical expertise Legal and methodical department Administration The staff of the department is 45 employees.

5 AUTHORITIES OF THE DEPARTMENT ON FINANCIAL AND ECONOMIC ANALYSIS Financial economic analysis of the tariff filings and licenses Financial economic analysis of the results of the activity of the companies operating in the energy sector, Analysis of the contractual obligations from the fiscal point of context, Financial economic forecast of the energy sector, Analysis of operational costs of power generation companies, Collection and assessment of regularly received financial and economic reports of companies operating in the energy sector, Development of methodical acts.

6 DEPARTMENT OF TECHNICAL ANALYSIS Technical analysis tariff filings and licenses Technical monitoring of activity aimed at maintenance and protection of companies operating in the energy sector, Analysis of tariffs and the structure of tariffs, Monitoring of contractual obligations in the technical context, Analysis of development and re-equipment of companies operating in the energy sector, Collection and assessment of the regularly received technical reports from the companies operating in the energy sector, Development of methodical acts.

7 METHODICAL-LEGAL DEPARTMENT Legal services, Development of regulations (and related material), Discussion of disputes arising among the licensed operators, Discussion of issues raised by power consumers, Registration of contracts, Development and approval of licenses, Maintenance of the logbook on legal acts Annual reports, publications in mass media, Registration of documents and resolutions of the Commission, Construction of a database and the maintenance thereof.

8 ADMINISTRATIVE DEPARTMENT Management of administrative issues of the Commission, Accounting and payroll, Inventory and procurement of assets, Maintenance and servicing of the computer network, Publication and distribution, Maintenance of a professional library, Transportation services, Maintenance of assets.

9 Below is a schematic map of the structure of the Commission, according to resolution 1 of the Public Services Regulatory Commission of the RA, dated 29 th of April 1997

10 According to the Resolution of the Energy Commission of the Republic of Armenia, 19, dated , a new structural subdivision was established as the Secretariat of the Commission. The main objectives: Organization of works with the mass media, non-governmental, political organizations and the civil society, Provision of information on ongoing and planned activity of the Commission with the mass media and through organization of meetings and discussions with various organizations, Organization of works on development of the report on the activity of the Commission and discussion of the final report by the Commission, Organization of works, aimed at investigation of complaints received from the consumers and publication of the results of the investigation, Organization of sessions and meetings of the Commission, Organizational management (protocol), Control over the implementation of the corresponding documents. Personnel of the department: 45 employees.

11 According to the Resolution 16 of the Energy Commission of the Republic of Armenia, dated August 17, 2000, a new structural division was established, with an overall staff of 57 employees. Tariff Policy Department Division of Financial Analysis Division of Tariffs Department of Legal Monitoring and Licensing - Legal-licensing division - Division of monitoring of licensed activity Administrative management Division on Public Relations

12 According to the Law of the Republic of Armenia On Energy, adopted by the National Assembly on the 7 th of March 2001, the Energy Commission was renamed into Energy Regulatory Commission. On the 4 th of December 2001, the National Assembly of the Republic of Armenia adopted the Law On Civil Service. Civil service is a professional activity, which is independent from the changes in the political powers, which is implemented in accordance with the law of the Republic of Armenia On Civil Service, with the purpose of implementation of certain objectives and functions, defined within the framework of the competences of these agencies defined by the legislation of the Republic of Armenia.

13 As most of the agencies of public management, so the Commission was included into the structure of the system of Civil Service, and the institute of organizational hierarchy was established therein (as the administration). Head of the administration: is a civil servant, follows the legislation on civil service, manages the ongoing activity of the institution, implements the management and coordinates the activity of the heads of structural subdivisions, reports directly to the Chairman of the Commission.

14 COMPETITION FOR SELECTION, EXAMINATION AND TRAINING OF CIVIL SERVANTS When vacancies occur for the position of civil service, the selection for the given position shall be made through a competition, The competition is organized in two phases: by means of examination and interviews; The training of civil servants is a comprehensive improvement of professional knowledge and working skills of the civil servants, Each civil servant shall participate in respective training initiatives, at least once in three years; Each recurrent examination of the civil servant is held once in three years; The examination of civil servants is aimed at identification and assessment of professional qualifications and skills of the civil servants in the position they occupy; Not less than one third of the civil servants of a given organization shall pass the mandatory examinations every year.

15 HIERARCHY OF CIVIL SERVICE POSITIONS Management positions of civil service; Higher positions of civil service; Leading positions of civil service; Junior positions of civil service; The group of management positions of civil service is divided into the 1 st and 2 nd sub-groups, The groups of higher, leading and junior positions of the civil services are divided into the 1 st, 2 nd and 3 rd sub-groups. The civil servants obtain civil ranks

16 THE PASSPORT OF THE CIVIL SERVICE POSITION The passport of the civil service position is a document approved in accordance with procedures defined by the respective legislation, which defines the rights and duties of a civil servant, envisaged by the corresponding law and other legal acts for the occupied position; as well as the requirements pertaining to the given civil servant, related to professional knowledge and practical skills, needed for the complete operation in the mentioned position, and for obtainment of the corresponding civil rank.

17 According to the Law of the Republic of Armenia On Energy, adopted by the National Assembly on the 7 th of March 2001 and following the requirements of the Water Code of the Republic of Armenia, the Energy Regulatory Commission was renamed into Commission on Regulation of Natural Monopolies According to the Law of the Republic of Armenia On Public Services Regulatory Body, adopted by the National Assembly on the 25 th of December 2004, the Commission on Regulation of Natural Monopolies was renamed into Public Services Regulatory Commission.

18 In the period of , the authorities of the Public Services Regulatory Commission of the RA were expanded The framework of regulation was amended with the following sectors: water supply and wastewater collection services, telecommunication services, ground mail services, railway transport and mandatory technical check-up of vehicles by methods of identification of technical defects.

19 Currently the Public Services Regulatory Commission of the Republic of Armenia acts with the following subdivisions Tariff Policy Department Division on tariffs Division on financial analysis Legal and licensing department Department programs of monitoring of licensed activity and investment Division on technical monitoring and analysis Division on investment programs Communication Department Division on Consumer Relations Division on Staff Management Division on Accounting General Division Logistics The overall personnel: 107 employees

20 Below is the schematic organizational structure of the Commission, according to the resolution of the Public Services Regulatory Commission 390L, dated July 17, 2008

21 PROCESSING OF THE INFLOWING INFORMATION OF THE COMMISION It must be mentioned that all the documentation flow to the Commission, has been correspondingly organized from the day of the establishment of the Commission and up to the present Every document received by the Commission is registered by the corresponding sub-division in a comprehensive logbook of information. The firs page of the received document is sealed, with a consecutive number on the seal, the date of the registration and the time. Every working day, at 14:00 the head of the division hands in the registered documents to the Head of the Administration. At 16:00 the documents are approved and accepted by the Chairman. The Chairman resends the documents to the Head of the Administration, other corresponding sub-divisions, advisors and one of the Commissioners, as the coordinator of the further actions in accordance with the corresponding document. Before end of business (18:00) the Head of Administration returns the reviewed documents to the Head of the Division. Before the 10:00 of the next day, the documents are copied and resend to the coordinators and the executors.

22 The outgoing communication of the Commission is registered in the corresponding logbook. The outgoing communication is printed on specially prepared letterheads. The upper left part of the official outgoing communication document contains a hand written date of sending by the corresponding sub-division and the personal ID of the person signing the document, the serial number of the document and the first letter of the name of the responsible sub-division that prepared the document; and in the lower left part of the document is the name, surname and the phone number of the person who prepared the document. The sub-division responsible for sending the document, sends it by ground mail, through a special communication line or delivers it to the addressee.

23 RELATIONS AMONG THE COMMISSIONERS AND THE ADMINISTRATION

24 COOPERATION OF THE COMMISSION WITH THE PUBLIC MANAGEMENT The Commission has the right to apply to the bodies of public management for obtainment of information, within the authorities assigned and the scope of activity thereof. The Commission participates in the development of financial and economic programs, as well as present the recommendations to those programs, within the framework of authorities assigned.

25 ÞÜàðвβÈàôÂÚàôÜ СПАСИБО! THANK YOU!