The Spanish Energy Regulator: The National Energy Commission (CNE)

Transcription

1 The Spanish Energy Regulator: The National Energy Commission (CNE) STRENGTHENING THE BULGARIAN ENERGY REGULATOR Rafael Durban Romero Director of External Affairs & Information services Spanish National Energy Commission SOFIA, 7-8 February 2006

2 TABLE OF CONTENTS >PURPOSE >PRECURSORS AND CREATION >RESOURCES AND FINANCING >MONITORING OVER THE CNE >STRUCTURE >INDEPENDENCE AND GOVERNANCE >FUNCTIONS >LEGAL PROVISIONS 2

3 PURPOSE. INSTITUTION The CNE is a public body with its own legal personality attached to the Ministry of Industry PURPOSE To watch out for effective competition, objectivity and transparency in the functioning of the energy markets in the benefit of all agents including consumers ENERGY MARKETS Electricity market Gas market Liquid hydrocarbons market 3

4 PRECURSORS: FROM THE CSEN TO THE CNE Electricity Act Dec CSEN Nov CNSE Oct CNE April 2000 CNE 1994 Electricity Act 1998 Hydrocarbons Act 4

5 RESOURCES AND FINANCING RESOURCES: a. Own assets b. Incomes c. Transfers charged to the State General Budgets BUDGET: The CNE proposes a budget to the Ministry of Industry for the following year. After being approved by the Government it is integrated into the State General Budgets FUNDING: Liquid hydrocarbons market Fixed amount on the Cubic tonnes sold by the wholesale oil operators Electricity and gas markets Percentage of the regulated end user tariffs and access tariffs 5

6 MONITORING OVER THE CNE Financial monitoring Assigned to the State Controller Office and if applicable to the National Auditing Office Monitoring of the Performance Assigned to the Ministry of Industry. The CNE must: Prepare an Annual Action Plan in coordination with the Ministry of Industry Prepare a follow-up report each three months with the activities undertaken and the degree of accomplishment Prepare an Annual Report 6

7 STRUCTURE (I). ORGANISATIONAL CHART. BOARD BOARD SECRETARIAT ADMINISTRATION ELECTRICITY GAS LEGAL AFFAIRS OIL REGULATION & COMPETITION EXTERNAL RELATIONS INSPECTION 7

8 STRUCTURE (II). ADMINISTRATION BOARD ADMINISTRATION BOARD Formed by a President, a Vicepresident, seven Commissioners and a Secretary with non voting rights (the latter is appointed by the members) Commissioners Appointed for a six years mandate. Possibility to renew once. Must be acknowledged professionals. Appointed by the Government following a proposal from the Minister of Industry and latter discussion within the Committee of Economic affairs of the Parliament to check if they satisfy the requirements. Dismissal only by reasons set under the law Restriction to work in the energy field in the following two years after leaving office 8

9 STRUCTURE (III). HUMAN RESOURCES Others 37% Lawyers 9% Support Staff 46 Council Directors 10 Deputy 7 Directors 21 Economists 22% Engineers 32% Analysts 58 Heads Unit 31 Fig. 1: Main professional backgrounds (approx.) Fig. 2: Professional levels As of December 2005, 178 people works at the CNE 9

10 STRUCTURE (IV). CONSULTATIVE BOARDS (I) The Consultative Boards are Consultative bodies to the National Energy Commission set up by the 1998 Hydrocarbons Act. They are to be called to issue reports on: - Proposals of legal provisions in the energy sector - Energy planning - Tariffs and remuneration of regulated activities - Issuing of Circulars for legislative development purposes 10

11 STRUCTURE (V). CONSULTATIVE BOARDS (II) Electricity Consultative Board. Formed by 36 representatives Central Administration, the Nuclear Security Council, the Autonomous Administrations, Electricity Companies (Generation, Transmission, Distribution, Suppliers), the System Operator, the Market Operator, the Consumers and Environment. Hydrocarbons Consultative Act. Formed by 36 representatives Central Administration, Autonomous Administrations, gas companies, oil companies, retail distributors, wholesale distributors, Strategic storage body, the Consumers and Environment. 11

12 GOVERNANCE AND INDEPENDENCY (I) Administration Board Highly executive. Among other areas: Positions, HHRR or costs. Their members meet at least once a week The Departments submit draft reports which after the assessment of the Legal Services Dept are discussed and approved by the Board. Commissioners are each assigned a portfolio of cases. Board of Directors Formed by the Board Secretary and the Heads of each Directorate. The purpose is to inform the Directors about the decisions taken by the Administration Board and actions to be undertaken by the Depts. 12

13 GOVERNANCE AND INDEPENDENCY (II) CNE Commission Odd number Staggered terms Government but presented in Parliament Applicable incompatibility rules for high ranking public officials Professional competence criteria Irrevocable mandates Limitations during and after mandate Stable funding Earmarked From CONSUMERS and Industry (Oil) 21M for 2005 The CNE has freedom to establish the HHRR strategy. Personnel employed by regular employment contracts Source: Regulatory Institutions in liberalised electricity markets (2001), International Energy Agency 13

14 GOVERNANCE AND INDEPENDENCY (III) Deputy Direction for Internal Control In April 2003 the CNE set up an Internal Control Unit as required in a Law passed in 2002 to ensure that the reports by the CNE would be based on principles of impartiality, objectivity and would avoid conflicts of interest. The main tasks of the Unit are as follows: Development of internal procedures Assessment and evaluation of the efficiency Control over the performance 14

15 GOVERNANCE AND INDEPENDENCY (IV) Internal procedures Procedures will be developed in the following areas. Some of them already completed. Proceedings management Planning activities Requests for reports or for advice CNE Official Journal publications (Information/ Legislative) Inspections Arbitrations Disputes Settlements Authorisation of new facilities Administrative appeals Monitoring of the energy markets Economical management Financial management Procurement HHRR Management Information services Internal control Legal counseling External Relations and communication policy 15

16 FUNCTIONS(I). Classification according to topics Legal related functions Solving Disputes Competition Settlement of regulated costs Economical and Technical Inspections Quality of supply Others 16

17 FUNCTIONS(II). Legal related functions - To participate through proposal or analysis in the drafting of legislation (basic and developments) - To participate through proposal or analysis in determining tariffs - Development of the legislation when the law states so. The CNE would in this case publish a Circular in the Official Journal - To participate in the national energy planning 17

18 FUNCTIONS(III). Disputes - To solve Third Party Access Disputes in the electricity, gas and liquid hydrocarbons sectors - To solve disputes related to the technical and economical management of the electricity and gas sectors - To act as an arbitration body if agreed by all the parties involved in the dispute 18

19 FUNCTIONS(IV). Competition issues - To watch out for competition reporting antitrust practices to the Competition Authority - To authorise operations that companies with businesses in regulated activities pursue in companies with business lines in liberalised activities. - To issue a report on market concentration operations in the energy sector. - To authorise the exercise of voting rights and the appointment of members of the Administration Boards in case the so called main operators acquire more than 3% of another main operator 19

20 FUNCTIONS(V). Settlement of regulated costs - To settle the regulated costs in the electricity sector -To propose the settlement of the regulated costs in the gas sector. The definitive settlement is in this case approved by the Ministry of Industry. 20

21 FUNCTIONS(VI). Inspections (When requested by relevant Administration or ex-officio) - Technical conditions of the energy facilities - Check that the specifications of the facilities comply with their authorisations - Proper use of the domestic coal in power plants which are being paid the so called domestic coal incentive - Actions and economical conditions of the agents whose activities may affect tariffs and the remuneration of regulated activities. - Availability of power plants under the ordinary regime - Proper invoicing and selling conditions of suppliers and distributors to customers - Continuity in the supply - Quality of the supply - Effective unbundling of the activities 21

22 FUNCTIONS(VII). Quality of the supply, others QUALITY OF THE SUPPLY - To identify the agents responsible of breaches in the quality of the supply OTHERS - To issue reports when requested by the Central or Autonomous Administrations - To issue a report on the authorisations of new facilities - To open proceedings when agreed with the Central Administration 22

23 FUNCTIONS (VIII). Information & Appeals POWERS TO OBTAIN INFORMATION The CNE shall request as much information as needed for exercising its functions by issuing Circulars in the Official Journal. The CNE may inspect the information provided by undertaking inspections. APPEALS TO DECISIONS ADOPTED BY THE CNE The CNE Decisions may be appealed to the Minister of Industry except those on: 1. Solving disputes related to the technical and economical management of the electricity and gas systems 2. Circulars issued to request information 23

24 FUNCTIONS (IX). Functions compendium GENERAL G1. Consultative body of the Administration on energy matters G2. Participate in the making law process G3. Participate in the energy planning process G4. Participate in projects on determining tariffs and the remuneration of regulated activities G5. Issue a report on authorisations of energy facilities G6. Issue reports when requested by the Autonomous Regions G7. Development and execution of legislation if CNE is enforced by law G8. Technical and economic inspections including vertical unbundling if requested by the competent Administration G9. Arbitration body in disputes when requested by the parties G10. Identify the agents responsible and propose the actions to be taken when deficiencies in the supply are spotted. G11. Open proceedings when agreed with the Administration G12. To keep watch over free competition G13. To solve TPA disputes G14. To authorise stakes of companies with regulated activities on other companies with non regulated activities G15. To issue a report on market concentration by companies G16. To establish its internal rules and organization G17. Issue an annual report G18. Others enforced by law or by the Government SPECIFIC TO THE ELECTRICITY SECTOR E1. Settlement of the transmission and distribution costs and other regulated costs E2. To solve disputes related to the technical and economical management of the system SPECIFIC TO THE GAS SECTOR GAS1. GAS2. Proposal of the Settlement of the transmission and distribution costs To solve disputes related to the technical and economical management of the system SPECIFIC TO COMPETITION MATTERS (RD-L 6/2000) COM1. To authorise voting rights and/or appointments of members in Administration Boards when exceeding participations in principal operators in an energy sector LEGAL INSTRUMENTS TO REQUEST INFO The CNE in order to perform its functions may issue Circulars which are to be published in the Official Journal. The CNE may validate the information provided by undertaking inspections. APPEALS TO DECISIONS BY CNE Any decision may be appealed to the Minister of Economy except those on: 1. Consequence of Function E2 2. Consequence of the Circulars issued by the CNE to request information 24

25 LEGAL PROVISIONS 1998 Hydrocarbons Act. Additional Dispositions 11th and 12th. Royal Decree 1339/1999, on the CNE Bye-Laws 25

26 Web site of Comisión Nacional de Energía: Web Eligibility 2003: 26

27 MORE INFORMATION, CONTACT TO: Rafael Durban Romero Tfno: Fax: dre@ cne.es Comisión Nacional de Energía C/ Alcalá, Madrid. Access to WEBSITE- (Spanish Energy Regulatory Commission) Access to WEBSITE- (Council Of European Energy Regulators) Access to WEBSITE- (Latinoamerican Energy Regulators) 27

28 END OF THE PRESENTATION THANK YOU 28