ANRE central public regulatory authority, with a status of a legal entity, not subordinated to any private or public authority.

Transcription

1 National Agency for Energy Regulation of the Republic of Moldova (ANRE): Status, Structure, and Functions Victor Parlicov General Director Missouri September 20-24, 2010

2 REPUBLIC OF MOLDOVA Parliamentary Republic Population: 3.56 million GDP (2009): $5.45 billion GDP (PPP): ~$10 billion Currency: Moldovan Leu $ 1 = Lei Area: sq. miles Language: Romanian Plains and hills Highest level: 428 m Access to Danube Frozen conflict with a separatist region (Transnistria)

3 The National Agency for Energy Regulation (ANRE) was established in 1997 by the GoM Resolution #767. In June 1999, thegovernment approved the internal Regulation of the ANRE. In 2010 ANRE s status has been raised: ANRE is reporting directly tothe the Parliament

4 ANRE central public regulatory authority, with a status of a legal entity, not subordinated to any private or public authority. Regulated sectors: Electricity Natural gas Oil products District heating (till 2001 and since 2010) Renewable energy (since 2010)

5 General statistical data regarding the regulated sectors (2009) Electricity supplied : 3.8 billion kwh Exported to Romania: mln kwh Natural gas consumption: mln m 3 Gas transit to other countries: mln m 3 Oil products, including LPG: 590k tons imported District heating: up to 3 mln GCal generated

6 ANRE Status t According to recent amendments to the law, the following functions were transferred from the Government to the Parliament: Appointment and dismissal of Administration Council members; Approval of the Agency budget and Agency s Internal Regulation; Examination of Agency s annual activity report.

7 ANRE Budget The ceiling of the budget has been raised (from % to 0.15% of the annual cost of electricity and natural gas supplied to customers, imported oil products and liquefied gas). After the budget is approved by the Parliament, the financial resources are managed by the Agency through hits Administration Council, the Agency having its own statement of balance, statement of cash flows and account of foreign currency.

8 ANRE s AdministrationCouncil The number of members of the Administration Council has been established at five directors (3 before) and their term of office has been extended from 4 to 6 years. The director has no right to serve a term longer than 12 years in this position. The number of cases and conditions under which the Parliament is entitled to appoint or dismiss a director are established by the law. The law provides also a series of prohibitions for directors such as the interdiction to occupy a position within an enterprise whose activity is regulated by the Agency 2 years after his/her dismissal.

9 ANRE functions Recently, ANRE was empowered with new functions, such as: approve tariffs for district heating services; solving cross border disputes; approval of secondary regulatory acts regarding procurement procedures in regulated companies; rules of capacity management and capacity allocation for interconnections, solving congestions; procedure of changing suppliers, monitoring and ensuring transparency and competition on regulated markets; monitoring of energy imports and setting conditions for exports

10 Structure of the Agency Tariff Policy and Economic Analysis Department Audit Department Regulation and Licensing Department Legal Department and Customer Protection Administrative staff

11 Tariff Policy and Economic Analysis Department Develop methodologies for the calculation and adjustment of regulated tariffs in the field of natural gas, electricity, heat and water, as well as other related regulations; Supervise the observance by licensed entities of the principle of necessary and justifiable costs when calculating and submitting tariffs for approval (for electricity, heat and natural gas) and monitors the correctness of their application by licensees.

12 Audit Department Performs the audit of regulated companies in order to verify that: they respect the principle of maximum efficiency at minimal i costs; there are no cross subsidies between generation, transmission, distribution and supply ofelectricity and natural gas; Develops methodologies for the calculation of rates for main petroleum products and LPG.

13 Regulation and Licensing Department Develop regulations establishing compulsory conditions for electricity/natural gas market participants regarding generation, transmission, distribution, supply and metering of electricity/natural gas; Monitor their observance by regulated companies; Issue, modify, temporary suspend or revoke licenses; Monitor and control the observance by licensees of established conditions for carrying out licensed activities; Deal with disputes between licensees.

14 Legal Department and Customer Protection Examine customers complaints; Represent ANRE s interests in courts; Supervise ANRE s decisions and resolutions.

15 Relations between Directors and technical staff tff The staff of the Agency, the manner and form of remuneration are determined by the Administration Council. A person is employed by the General Director with the approval of at lest one member of the Administration Council.

16 Accession to the Energy Community Treaty The Ministerial Council of the Energy Community accepted Moldova as Observer to the Treaty in November 2006; Starting ti with November 2008, three negotiation rounds took place that concluded with the signature of a Memorandum in April 2009; In December 2009, the Ministerial Council agreed on the accession under the terms and conditions set out in the protocol; Republic of Moldova became a full member of the Energy Community starting with May 1, 2010

17 Accession to the Energy Community Treaty Accession to the ECT significantly improved the process of harmonization of national legislation with the European acquis in the energy sector. As a result, two European directives were transposed in two laws, adopted by the Parliament in December, 2009: Law on electricity Law on natural gas

18 Cooperation within ERRA The Energy Regulators Regional Association (ERRA) was legally registered in Hungary in April 2001 and its Secretariat operates in Budapest; ANRE is a founding member of ERRA; NARUC and USAID provide continuous support for the operation of the Association.

19 Thank you!