republic of macedonia status report on meeting the commitments of the athens mou seeerf iv permanent...

REPUBLIC OF MACEDONIA

STATUS REPORT ON MEETING THE COMMITMENTS OF THE ATHENS MOU

SEEERFIV PERMANENT HIGH LEVEL GROUP MEETING

Athens, GreeceSeptember 9, 2003

Institutions for energy policy, regulation and system operation

National Energy Authority Operates as a department within the Ministry of Economy;

Reforms: State Energy Agency in course of establishment (January 2004)

- responsible for professional technical support on data management, strategy analysis, policy and project assessment and implementation coordination

Formal determination of the State Energy Authority within the new Energy Law and Amendments on the Law on State Administration

Energy Regulatory Commission Established in June 2003 (Energy Law) 5 Commissioners nominated by the Parliament Assembly in July 2003

Engagements:

Establishment of tariff systems and prices Authorization procedures (licenses for generation, distribution, supply and eventually other services within the energy industry) Development / verification of Grid Codes and Market Codes

Dispute settlement and customer protection


Energy Regulatory Commission

Developments:

Logistics consolidation and staffing; An EAR technical support project is under way aimed for providing technology transfer, training and drafting of basic acts, rules and templates.

Independent financing (2004, 2005).


TSO/MO/DSO Initial market structure (model) foresees a separated (independent) state-owned Transmission Service Provider (TSO/MO).

Initially DSO stays (regulated) within an integrated distribution and supply function. Next step is separation of independent DSO(s).

Terms: The market infrastructure shall be extracted from the existing integrated utility (ESM) among the first step within the ongoing process of ESM transformation. TSO/MO should be operative in the first half of 2004.


National & Regional market

Unbundling of Account, Independent Audit and Corruption Abatement

Depending on the ESM Restructuring Model and

implementation plan the appropriate financial unbundling should be implemented in the first half of 2004.

Audits reform to be introduced regarding International Accounting Standard methodology implementation – according to the Plan.

Independent Corruption Abatement Commission operates within the state administration. Additional measures and criteria will stem from the judicial system reforms.


Unbundled Transmission Tariffs ESM accounting unbundling model (Generation, Distribution,

Transmission). Transmission provider to be financed

independently.

Tariff Reform

Tariff methodology study is under way (until November 2003). The

tariff model basically proposes a rate-of-return approach along

with a long-term marginal cost revenue allocation. This should

enable the Regulator to implement unbundled tariff system for

each function.

Terms – planned for the first half of 2004.


Action plan Task Force set up within Ministry of economy to develop an Action

Plan for establishment of internal liberalized electricity market –

benchmarking reports.

Main sources for terms and criteria: Athens MoU, EU Electricity

Directive, current Studies on the internal market model, tariff

methodology and affordability, and ESM restructuring

First priorities – Regulatory Commission, Independent TSO,

Legislation and Regulations to be redefined or developed, Tariff

System. Next/other steps to be analyzed and planned for one year

periods.

First draft – implementation – main concerns and risks.


Thank you for your attention

republic of macedonia status report on meeting the commitments of the athens mou seeerf iv permanent...

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