|Energy Regulatory Commission (ERC)|
|Population||2.065.769294 (31.12.2013, source: State Statistical Office)|
|GDP/Capita||€3.931 (for 2013, source: Ministry of finance)|
In 2014 4.981 GWh:
|Electricity Market Size||
6.960 GWh (total consumption in 2014)
Total: 2.011,25 MW
(TPP:1010 MW, HPP – 603,2 MW, SHPP – 59,9 MW,CHP: 287 MWe, PV: 14,75 MW; WPP: 36,8 MW)
|Surplus Installed Capacity over Demand||-|
|Net Electricity Importer||3.072 GWh (import in 2014)|
|Natural Gas Imported||134.663.666 nm3 in 2014|
|Natural Gas Consumed||134.663.666 nm3 in 2014|
The legal framework for establishment and operation of the Energy Regulatory Commission of the Republic of Macedonia (ERC) is provided by the Energy Law. ERC is comprised of five Members, one of which is the President. On the proposal from the Government of the Republic of Macedonia, the Parliament of the Republic of Macedonia appoint and dismiss the Members and the President of the ERC, taking due consideration of the appropriate and equitable representation of all ethnic communities. Term of office for Members or the President of the ERC is five years and none of the Members can hold the position for more than two terms of office.
In accordance with the Rulebook on the organization and systematization of the job positions and tasks of the employees of the ERC, the organizational structure of the ERC is:
The Rulebook determines the total number of employees in ERC at 45 persons (5 Members of the ERC and 40 employees), By 31.03.2015, there are 29 employees as follows:
|Number of Commissioners||5|
|Number of staff||24|
The operation of the ERC is financed by own funding sources, secured by means of charges collected on the basis of license issuance and collection of annual charge levied to the holders of energy activity licenses. By 1st October in the current year the latest, ERC submits to the Parliament of the Republic of Macedonia the proposed Financial plan of the Energy Regulatory Commission for the next calendar year, for approval.The Financial plan of the Energy Regulatory Commission for the year 2015 was approved by the Parliament of the Republic of Macedonia and the annual charge for 2015 is set at 0.049 %. .
ERC regulates electricity, natural gas, district heating and oil and oil derivatives sector.
According to the Energy Law), for the purpose of securing efficient, competitive and uninterruptable operation of energy markets, ERC has the following competences:
Independence: ERC is an independent authority regarding the operation and decision making process within the scope of competencies prescribed by the Energy Law.
Supervised by: The operation of the ERC is supervised by the Parliament of the Republic of Macedonia.
Reports: By 31st March in the current year the latest, ERC submits to the Parliament of the Republic of Macedonia the Annual report on its operation for the previous year for adoption. The Annual report contains detailed information on activities according to the authorities, as well as detailed information on the material and financial operations of the ERC. ERC submits its Annual report to the Government of the Republic of Macedonia and the Ministry, for information purposes. On the request from the Government of the Republic of Macedonia or the Minister, ERC submits other reports and information pertaining to the field of operation of the ERC and relevant for the performance of matters falling under the Government and the Ministry as stipulated by the Energy Law.Appeal process: ERC is an independent authority regarding the operation and decision making process. The operation and issuing of bylaws and decisions are determined by the Energy Law, other bylaws, the Statute and Book of Operations of the ERC. The bylaws and the decisions of ERC are published at the “Official Gazette of the Republic of Macedonia”, and on the ERC’s web site: www.erc.org.mk. Appeals against individual acts of the ERC can be lodged in front of the Appeals Commission for Matters in the Energy Field, within a period of 15 days from the publication of the ERC’s act. The appeal shall not postpone the execution of the decision taken by the ERC.
|Legal basis||Energy Law (“Official Gazette of the Republic of Macedonia”, no. 16/2011, 136/2011, 79/13,164/13, 41/14, 151/14 and 33/15)|
Industry and Market Structure:
Electricity Market Structure:
In March 2004, the Law on restructuring of JSC ELEKTROSTOPANSTVO NA MAKEDONIJA – vertical integrated company for generation, transmission and distribution of electricity was brought, by which the company was divided into 2 companies:
In 2005, JSC ELEKTROSTOPANSTVO NA MAKEDONIJA – state owned, vertical integrated company for generation, distribution and supply with electricity was separated into 3 companies:
On 17th of March 2006 the Government of the Republic of Macedonia announced that the Austrian company EVN AG was the winner on the tender for sale of majority package of shares in JSC ESM Distribution.
JSC “Elektrani na Makedonija” (JSC ELEM) is share hold, state owned company holder of the license for performing the energy activity: generation of electricity.
JSC Negotino is electricity producer that is engaged by MEPSO for electricity production, power and ancillary services and as a reserve in the power system.
TE-TO JSC Skopje is share hold, private owned company, holder of the license for performing the energy activity – combined generation of electricity and heat.
KOGEL JSC Skopje is share hold, private owned company, holder of the license for performing the energy activity – combined generation of electricity and heat.JSC MEPSO is share hold, state owned company, holder of the licenses for performing the following energy activities: transmission of electricity, operation of the power system, operation and organization of the electricity market.
JSC EVN MAKEDONIJA (90% by EVN – Austria, 10 % state owned) is holder of the licenses for performing the following energy activities: operation of the distribution system and distribution of electricity, generation of electricity, retail supply of electricity for tariff customers, and supply of electricity of last resort.
JSC ELEM Podruznica Energetika is state owned company, holder of the licenses for performing the following energy activities: operation of the distribution system and distribution of electricity and retail supply of electricity for tariff customers.
The customers (253 companies) that have more than 50 employees and total annual income or total assets more than 10 million EUR in MKD counter value, have concluded non –regulated agreements for purchase of electricity and supply their needs on the electricity market from the electricity suppliers at freely negotiated prices. They do not have the right to be supplied from the electricity supplier of last resort and from the electricity supplier for tariff customers.
The quantities of electricity to cover the losses in electricity transmission system and distribution systems are purchased on the open electricity market.
Approximately 45 %-50% of the total electricity consumption in the Republic of Macedonia is provided on the open electricity market.
Currently, there are 60 registered electricity traders and 18 electricity suppliers with valid licenses issued by ERC.
According to the latest changes of the Energy Law, the process of liberalization of the electricity market for households and small customers will be gradually implemented in the period 2015-2020.
The bylaws on electricity prices and tariffs determine objective and non-discriminatory criteria for justifiability assessment of costs necessary to perform the regulated energy activity, taking due consideration of improved efficiency in the operation of companies performing regulated energy activities. ERC determines:
The average price for electricity supply to tariff customers connected to the distribution system of JSC EVN Makedonija – Skopje for the year 2014 was increased (which applied from 1st of August 2014) and it is 5,0286 MKD/kWh (81,76 €/MWh).
According to the Energy Law and the Rulebook on preferential producers of electricity from renewable energy sources, ERC issues Resolutions for obtaining status of preferential producer of electricity produced by photovoltaic power plants, and Decisions for approval of using feed-in tariffs of electricity produced by photovoltaic power plants.
Natural Gas Market Structure:
There are no domestic sources for production of natural gas and the supply of natural gas comes from imports. Gas has been imported from Russia since 1997, via a pipeline (capacity 800 million m3).
Gas is used in the largest percentage by the industrial customers directly connected on to the transmission system and for district heat generation and in smaller percentage by the industrial customers connected on to the distribution system. A study for natural gas transmission development envisages further gasification as well as the establishment of interconnectors with all neighboring transmission systems. Also the feasibility study for natural gas distribution development at the state-level envisages further gasification in the cities.
The company GA-MA JSC Skopje is license holder for performing energy activities natural gas transmission and operation of the transmission system, and the companies Direction for Technological industrial development zones – Skopje (DTIDZ), Public company Kumanovo Gas - Kumanovo and Public company Strumica Gas – Strumica are license holders for performing energy activity natural gas distribution, operation of the distribution system and supply with natural gas for tariff customers connected to the natural gas distribution system.
In accordance with the Energy Law, all natural gas customers are eligible, after the entering into force of the bylaws from article 203, paragraph 1 from Energy Law. ERC adopted all bylaws prescribed by the article 203, paragraph 1 of the Energy Law, including Natural Gas Market Rules. The Natural Gas Market Rules applied from 1st of January 2015, and for that purpose ERC issued licenses for supplier of natural gas and supplier of natural gas in last resort. ERC undertook all necessary measures prescribed in the Energy Law and natural gas bylaws regarding liberalization of natural gas market which started from 1st of January 2015. ERC determines:
The tariff for performing energy activities transmission and operation of the transmission system of natural gas for JSC GA-MA Skopje for the year 2015 was increased for 5,01%, and the tariff for performing regulated activity distribution of natural gas and supply with natural gas to tariff customers connected on the system for distribution of natural gas for DTIDZ – Skopje for the year 2015 was decreased by 9,17%, compared to the year 2014.
Current Energy Issues:
ERC participates on the meetings of the working groups established in the frames of the IPA project “Strengthening the administrative capacity of the Energy Department at the Ministry of Economy and the Energy Agency of the Republic of Macedonia”’ for the implementation of the Third package of EU legislation on internal energy market. Within this project a new Energy Law shall be issued implementing the Third package of EU legislation on internal energy market in Republic of Macedonia.
ERC is beneficiary of the project “Support to the Energy Regulatory Commission of the Republic of Macedonia for implementation of the Third Energy Package in Republic of Macedonia”. This project is supported by the Kingdom of Norway, Ministry of foreign affairs, and implemented by the University “Ss Cyril and Methodius”- Skopje, Faculty of Electrical Engineering and Information Technologies. The focus of the 3 years project, which started in December 2014, is supporting ERC’s activities in the process of implementation of the new Energy Law and EU legislation on internal energy market.
ERC joined the Council of European Energy Regulators as Observer. By joining in CEER, ERC shall gain the experience in implementation of the EU Third Energy Package and challenges that EU Member states are facing and shall contribute to the creation of a single, competitive, efficient and sustainable EU internal energy market.
ERC, as full member, regularly participates on the meetings of the Energy Community Regulatory Board (ECRB) and on meetings of the ERCB working groups on electricity, natural gas and consumer protection, the For a and the workshops which are organized within the Energy Community.
ERC, as full member of the Energy Regulators’ Regional Association (ERRA), actively participate on the meetings of the ERRA General Assembly, Chairmen’s meetings, Licencing Committee, Tariff and Price Committee, as well as on the training courses.