Tariff/ Pricing Committee

Background

The purpose of the establishment of the Tariff/Pricing Committee was to bring together staff persons of ERRA member organizations directly involved in tariff/pricing process in order to compare and review various pricing practices of ERRA members.

Members of the committee discussed and presented papers on tariff/pricing issues that energy regulatory authorities faced in their daily practice, topics included:

  • green energy pricing, efficiency factor determination, ancillary services,
  • system tariffs in the electricity sector,
  • pricing policy for small independent generators, cost allocation between heat and electric power in combined energy production at cogeneration plants,
  • structure of the power sector and rates charged for monopoly services, technical and commercial losses, low-income customers,
  • tariff design and tariff reviews, cross-subsidies and privatization, differentiated tariffs, two part tariffs for electric power consumers,
  • cost allocation & methods for distribution & supply, performance;
  • evaluation for power distribution companies, connection of new customers and capacity;
  • enlargement, procedures and rules for the examination of documents on tariff approvals;
  • determination of regulatory asset base (rab) after revaluation of license holder’s assets, chart of accounts etc. 

The Committee ceased its operation in 2020.


 

Materials

Papers prepared by the Tariff/ Pricing Committee:

  2020

The TSO/DSO revenue study provides a comprehensive overview of the cost and revenue determination of regulated electricity transmission and distribution system operators, and their subsequent adjustments, among a sample of 20 ERRA Member Organizations (MOs). The analysis is complemented with insights on regulatory governance regimes in place and overall frameworks for tariff setting applied by MOs for the regulated entities. The report is based on a detailed questionnaire through which the authors extracted the targeted information and data from the MOs. In the main part of the study, the authors provide a benchmarking analysis in order to present the findings in graphs and tables and point out the solutions that are applied for a given regulatory issue together with specific indicators/ models and the values defining them in particular regulatory context. This is further coupled with general regulatory insights on applied methods with necessary theoretical descriptions, pointing out examples of best practices among the sampled MOs. The report is concluded with an identification of general tendencies in the development of regulatory frameworks among MOs as well as possible areas of improvement.

Prepared by: Economic Consulting Associates (ECA)

   

Regulatory Practices Supporting Deployment of Renewable Generators through Enhanced Network Connection

    2013

The present report of the Issue Paper includes the draft version of the theoretic discussion part of the four key issues raised by the call: Determination of the maximum connectable intermittent capacity to the system; Queue management; Connection tariff methodology for RES-E generators and the Regulatory incentives to connect RES-E. With the structure of the report we follow the same order as we start from the TSO focused areas and finish with the more DSO related topic.

It contains four case studies on the present practices of the selected four countries – Bosnia and Herzegovina, Italy, Hungary and Turkey.

Prepared by: Regional Centre for Energy Policy Research (REKK)

   

Support Schemes for Electricity Produced from Renewable Energy Resouces

  2012

The present ERRA issue paper has multiple objectives:
– It gives an overview of the recent ‘hot issues’ in the EU and in the ERRA countries concerning renewable electricity (RES-E) regulation.
– Based on the quantitative analysis of the in-depth questionnaires of the ERRA countries it highlights the most relevant issues for regulators regarding RES-E promotion and tries to determine those regulatory factors that has detectable impact on RES-E deployment.
– It creates a common database on the RES-E regulation of ERRA countries.
– Provides two detailed country case studies – one employing green certificate system, the other feed-in tariffs (FIT) – to identify critical regulatory issues.

Prepared by: Regional Centre for Energy Policy Research (REKK)

   

Determination of Regulatory Asset Base (RAB) After Revaluation of License Holder’s Assets. Chart of Accounts   2009

The objective of this issue paper is to assist ERRA’s Tariff/pricing Committee in providing insight on the key aspects related to this issue, especially comparing with international best practice. This issue paper takes a closer look into the main components associated with determining the RAB. It highlights the main factors which influence these areas to identify good practices and measures in order to derive recommendations for minimizing interference and effective regulatory performance. A questionnaire was sent to gather information on the current practice of the ERRA members.

Author: KEMA International B.V.

   
 
 
For more Issue Papers of the Tariff/ Pricing Committee please go to the E-Library.