Market l i l b i e b rali l za tio i n o n aspe p cts

Transcription

1 Market liberalization aspects in Republic of Moldova National Agency for Energy Regulation of the Republic of Moldova Veronica Muruziuc Chisinau, March 25, 2014

2 Transposition of EU principles under EnCT-I To become member with full rights (contracting party), Moldova committed to transposeseveraleu DirectivesandRegulations, including: 1. Directive No 2003/54/EC concerning common rules for the internal market in electricity and repealing Directive 96/92/EC (deadline 31 december 2009); 2. Directive No 2003/55/CE concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC (deadline 31 december 2009); 3. Regulation No 1228/2003 on conditions for access to the network for cross-border exchanges in electricity (deadline -31 December 2010); 4. Regulation No 1775/2005 on conditions for access to the natural gas transmission networks (deadline 31 December 2010). 1. In march 2010 Moldova signed the Energy Community Accession Protocol

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4 Transposition of EU principles under EnCT-II The Directives 2003/54/CE and 2003/55/CE transposed by Electricity Act No. 124/ and by Natural Gas Act No. 123/ ; Power market opening: From 1 January 2013, all non-household customers were declared eligible (Electricity Act); The power market for households will be opened from 1 January 2015 (Electricity Act); Natural gas market was fully opened for all final customers in 1998 (according to the law).

5 Transposition of EU principles under EnCT-III Regulation No. 1228/2003 and Regulation No. 1775/2005 still pending approval until amendments to the Electricity and Natural Gas Act will enter into force; Amendments to the Electricity Act, published in Official Monitor of Republic of Moldova on 21 March 2013 (need to establish in Law the right of TSO on the power market to organize tendering procedure in relation to capacity allocation, when there are congestions at a border and obligations to publish information about transmission grid); No particular problems, because no congestions at the border with neighboring countries (Ukraine, synchronous connection); Amendments to the Natural gas Act not in force yet (need to establish in Law the obligation of TSO on the natural gas market to publish information about transmission grid ). No congestions!

6 Specifics of Moldovan power sector and natural gas sector Power Market Only one active eligible customer Lack of generation capacity 70% of electricity imported from Ukraine and TransnistrianPower plant; 30% covered by producers from the right side of Nistru river. Natural Gas Market No alternative suppliers of natural gas on Moldovan market; 100% import from Russian Federation

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8 Electricity Generation Cogeneration Power Plants CHP-1 (66 MW) CHP-2 (240 MW) CHP-North (28.5 MW) 2 Hydro Power Plants HPP Costesti (16 MW) HPP Dubasari (48 MW) Kuchurgan Power Plant (MGRES, 2520 MW) 10 CHPs at Sugar Factories (98 MW) HPP Costesti CHP-N 28.5 MW HPP Dubasari

9 Natural Gas Market

10 Transmission and distribution of natural gas TSO owned by JSC Moldovagaz : 50% shares owned by Gazprom (Russia), 36.6% -Government of the Republic of Moldova and 13.4% by Tiraspoltransgaz 4 gas transmission pipelines; 4 compressor stations: Drochia, Tiraspol (2), Vulcanesti; km gas pipelines, including cca 570 km transit pipelines Over 90% of localities have access to gas Over 40% of consumers are connected

11 Main principles and implementation Unbundling (legal, functional, accounting) of network activities (TSO, DSO) from generation, supply activities; Customer protection (eligibility; vulnerable customers, universal service; switching suppliers by customers); Third party access; Transparency; Independence of the Regulatory authority.

12 Unbundling- I Moldovan TSO on power market, Moldelectrica, is a state company and is functionally and legally unbundled (but not independent under Third energy package ); Moldovan TSO on natural gas market, Moldovatransgaz, a daughter company of Moldovagaz, is functionally and legally unbundled (but not independent under Third energy package, Moldova obtained a delay until 2020);

13 Unbundling - II The 3 DSOs on power market performing their activity on a given area carry out both activities of distribution and supply of electricity at regulated tariffs; Until 1 January 2015, DSO s have to legally unbundle supply from distribution; Until 1 June 2014, DSO s have to finalize functional and accounting unbundling; Until 1 June 2014, DSO s have to present ANRE compliance program describing measures undertaken to ensure functional and accounting unbundling.

14 Unbundling - III The 24DSOs on natural gas market performing their activity on a given area carry out both activities of distribution and supply of natural at regulated tariffs. Under the Natural Gas Act before amendments: From January 1, 2013, DSOs serving over 100 thousand final consumers unbundle supply from distribution - Chisinau-gaz preserved the function of DSO, while SA Moldovagaz became the natural gas supplier at regulated tariffs for the related area; Under Amendments Natural Gas Act (not in force yet), all DSO s: Until 1 January 2015, DSO s have to legally unbundle supply from distribution; Until 1 June 2014, DSO s have to finalize functional and accounting unbundling; Until 1 June 2014, DSO s have to present ANRE compliance program describing measures undertaken to ensure functional and accounting unbundling.

15 Unbundling - IV ANRE has to approve: New methodologies for calculation, approval and adjusting of tariffs for distribution and supply of electricity at regulated tariffs, to avoid crosssubsidies between activities (ANRE Resolution No 497 from ); Methodology for calculating tariffs for electricity transmission services (ANRE Resolution No 411 from ), subsequently amended by ANRE Resolution No 520 from (to enable TSO to buy electricity to cover losses); New methodologies for calculation, approval and adjusting of tariffs for transmission, distribution and supply of natural gas at regulated tariffs, to avoid cross-subsidies between activities (draft); Regulation on unbundling of accounts (draft); Amendments to the Power market rules (draft); Amendments to the Natural gas market rules (draft).

16 ANRE has to approve: Unbundling/Customer protection Regulation on switching of the electricity supplier by eligible consumers (ANRE Resolution No 534 of ); Regulation on switching of the natural gas suppliers by final customers (draft); Amendments to the Regulation on supply and use of electricity (ANRE Resolution No 537 of ); Amendments to the Regulation on supply and use of natural gas (draft).

17 Regulation on switching of the electricity supplier by eligible customers, main principles The procedure for switching the electricity supplier can be managed by the eligible customer or by the new supplier (if empowered by the eligible customer); 20 calendar days for a customer to switch its supplier, from the day he sent to actual supplier and DSO/TSO a notification on switching; Actual supplier and DSO/TSO forbidden to impede eligible customer to switch to a new supplier (no additional fees, obligations); When concluding new contracts on transmission or distribution services, TSO/DSO forbidden to create to the eligible customer wishing to change its supplier worse conditions than in previous contract or to deny in concluding a new contract on transmission or distribution (capacity follows the eligible customer);

18 Regulation on switching of the electricity supplier by eligible customers, main principles The contract on supply with actual supplier will be considered terminated if: eligible customer paid its bills issued by the actual supplier until finalization of switching procedure; For this period, the actual supplier should issue a bill estimating the electricity consumption (according to the consumption from the similar month of the previous year); until finalization of switching procedure, it was not discovered that the eligible customer withdraw illegally electricity.

19 Regulation on switching of the electricity supplier by eligible customers, main principles During the day indicated in the notification on switching, the DSO/TSO must read the meter readings and provide the metering information to the previous (actual) supplier and to the new electricity supplier (within 2 calendar days); If the real consumption for the switching period is higher than the estimated consumption(by the previous supplier), the previous supplier should issue a new bill for the consumption difference (within 5 calendar days); If the real consumption for the switching period (estimated by the previous supplier) is lower than the estimated consumption, the previous supplier is obliged to pay this difference to the customer (within 5 calendar days).

20 Amendments to the Regulation on supply and use of electricity, main principles Suppliers at regulated tariff have the obligation to provide electricity supply up to the consumption place of the final customer. For this purpose, he is obliged to sign a contract for transmission and distribution of electricity, in order to ensure delivery of electricity to the final customer; Some legal relations between final customer and DSO/TSO are regulated by Law on electricity and Regulation on supply and use of electricity.

21 Amendments to the Regulation on supply and use of electricity, main principles Main obligations of DSO/TSO Connect/Disconnect/Reconnect the final customer s electric installations (upon request from supplier, if the case) Provide, upon request, information related to access to the network Read meter indications on a monthly basis and provide this data to the supplier Verify and inspect the meters Announce final customers about scheduled interruptions Main obligations of suppliers at regulated tariffs Issue bills for electricity consumption (monthly basis); Ask the DSO/TSO to reconnect a customer to the distribution/transmission network; Provide, upon request from the final customer, information about historical consumption of electricity.

22 Amendments to the Regulation on supply and use of electricity, main principles: Complaints Complaints regarding contracting, disconnection, reconnection, billing and unauthorized consumption should be solved by supplier; Supplier should examine complaints on disconnection irrespectively whether the disconnection was made from the DSO initiative or upon request from the supplier; The DSO/TSO should cooperate with the supplier by presenting requested information needed for solving the complaint; DSO/TSO has the obligation to solve complaints regarding connection to the network, delimitation of property, curtailments in delivery of electricity; If the customers addressed the complaint to the wrong party (e.g. to the DSO instead of supplier), the recipient has to forward the complaint to the other party within 3 working days and must inform the customer about this action.

23 Additional EU Directives and Regulation to transpose and implement According to the Ministerial Council Decision from 6 October 2011, by 1-st January 2015, the Energy Community Contracting parties should transpose the so-called third energy package : Directive No. 2009/72/EC, concerning common rules for the internal market in electricity; DirectiveNo. 2009/73/EC, concerning common rules for the internal market in natural gas; RegulationNo. 714/2009on conditions for access to the network for cross-border exchanges in electricity; RegulationNo.715/2009on conditions for access to the natural gas transmission networks. The third energy package further steps for: Unbundling; Customer protection; Third party access; Transparency; Independence of the Regulatory authority.

24 Challenges Finalize implementation of 2 nd energy package, together with transposition and implementation of 3 rd energy package To ensure effective unbundling of TSO from producers and suppliers (ownership unbundling in the gas sector; full ownership unbundling, ISO, ITO model); To encourage the entrance of new suppliers on the energy markets: Introduction of obligation for non-household customers to buy electricity from the market(could be an option?);

25 Challenges To establish a day-ahead market: At the level of Energy Community a SEE WMO Report was developed. One of the conclusions was that until Moldova joins ENTSO-E (in about 8 years according to the Report), the possibility to create a common market with Ukraine should be considered. To establish a balancing market, an ancillary services market.

26 Energy Community: Regional Balancing initiative Final deliverable of the initiative: Framework for a Regional Balancing Model: 1. Framework for the Terms and Conditions related to Balancing: containing all the principles and relevant methodologies which have to be adopted on a national level 2. The Implementation Framework for the regional integration model, with a detailed Integration path for a regional balancing market Involvement of Moldova in this regional initiative: 1. Study the possibilities of Integration of the Non-Synchronously connected Areas in the Regional Balancing Market 2. Analysis of the Formation of an initial Coordinated Balancing Area UA- MD

27 Veronica Muruziuc Legal consultant National Agency for Energy Regulation Tel Chisinau, Republic of Moldova THANK YOU FOR YOUR ATTENTION