- Program Description
- Implemented Projects
- Estonian Study Visit at the Irish Regulator
- Joint member project between Armenia, Lithuania and Hungary
- Ad Hoc Consultancy Project for GNERC
- Twinning Project between Armenia and Latvia
- Expert Exchange Project between Georgia and Lithuania
- Twinning Project between Turkey and Macedonia
- Ad Hoc Consultancy Project for ERERA
- Ad Hoc Consultancy Project for PSRC Armenia
In order to promote the exchange of technical information and best practices among its Members and to expand the in-house consultancy, research and advisory capacity of the organization ERRA is offering limited number of subsidies for Ad Hoc Member and Ad Hoc Consultancy Projects.
Application forms for 2019 projects will be available as of May 2019.
Within the framework of ERRA Member Projects, the Estonian Competition Authority (ECA) was visiting the Commission for Regulation of Utilities (CRU) on October 29 – November 1, 2018. As a new rule of the ERRA Workplan 2018/2019 it was possible to engage with non-ERRA member regulator.
The concrete result of the project is improved knowledge in:
- Price regulation of electricity, gas and water networks
- Renewables integration
- Electricity and Gas Market design
- Cooperation between regulators, competition agencies, consumer protection agencies
- Ways to improve cooperation between ERRA and CEER
In the framework of the ERRA Member-to-Member Projects the meting between Public Services Regulatory Commission of Armenia (PSRC), Hungarian Energy and Public Utility Regulatory Authority (HEA) and National Commission for Energy Control and Prices (NCC) of Lithuania was implemented in March 2018 in Budapest. According to the agenda the following topics were discussed:
- Renewable energy status and legal framework in Hungary
- Current situation and Renewable energy support schemes in Republic of Armenia
- Support schemes for RES in Hungary; METÁR and former support schemes
- Schemes of support for solar energy production: best practices and way of implementation, Lithuania
- Net metering in Armenia: Key issues and possible ways of solution
- Net metering in solar energy and other RES, Hungary
- Net metering in solar energy and other RES, Lithuania
- Visit to Tatabánya Power Plant
In the frame of its 2016/17 Annual Workplan, the Energy Regulators Regional Association offered small-scale ad hoc consultancy and ad hoc topical research projects to its member organizations funded entirely from ERRA’s annual budget. The aim of the projects was to tackle one particular or specific regulatory issue of the member organization with the assistance of consultants preferably from the registered Pool of ERRA experts.
The Georgian National Energy and Water Supply Regulatory Commission (GNERC) submitted an application in order to receive support in developing Weighted Average Cost of Capital (WACC) model. The project aimed to identify international best practices in setting WACC and to design a WACC model which is tailored to fit Georgia’s circumstances.
The project was awarded to Mr. Ardian Berisha who gave professional advice and composed a report to GNERC. Mr. Berisha is a highly qualified energy economist with 10 years experience advising governments, development agencies and private investors in energy policy, power markets, regulatory reform and renewable energy sources.
The report prepared for GNERC can be downloaded from here.
Between 14-16 February, 2017 in the framework of the ERRA Member-to-Member Projects the Twinning Project between the Public Services Regulatory Commission of Armenia (PSRC) and the Public Utilities Commission of Latvia (PUC) was successfully implemented. The aim of the project was to exchange best practices and develop the necessary approaches and incentives to improve the investment activity in the energy sector.
During the 3-day project the following were thoroughly discussed:
- The regulator’s role in the process of planning and coordinating the investment;
- Define criteria for harmonization of investment activities;
- Normative framework for the evaluation of investment projects;
- Monitoring of investment activity and its evaluation criteria;
- Methodology survey of investment monitoring;
- Evaluation of investment proving documents.
ERRA hopes that the project will further enhance cooperation between the two National Energy Regulatory Commissions and will help to promote setting up new initiatives. The success of the project will certainly make significant contributions towards strengthening topic-based cooperation between ERRA member regulatory authorities in the future.ű
The program report including the detailed agenda is available in Russian here.
Between 29 February – 4 March, 2016 in the framework of the ERRA Member-to-Member Projects the Expert Exchange Project between the Georgian National Energy and Water Supply Regulatory Commission (GNERC) and the National Commission for Energy Control and Prices (NCC) of Lithuania was sucessfully implemented. The aim of the project was to share experience in natural gas regulation between GNERC and NCC.
During the 5-day project the following topics regarding the transformation of the Natural Gas Sector were thoroughly discussed:
- Natural gas market structures and main players in Lithuania and in Georgia.
- Investment evaluation and adjustment in Lithuanian natural gas sector
- Regulation on Wholesale Energy market Integrity and Transparency (REMIT)
- Pricing in Georgian and Lithuanian natural gas sector, WACC setting: principles and rules
- Licensing rules and monitoring of licensed activities in Georgia and in Lithuania
- TSO (Amber Grid) profile, activity and projects
- Ensuring technical safety in natural gas sector: roles and responsibilities
- Overview of district heating regulation
- Connection to the transmission and distribution network
As a result Georgian experts gained experience about the key factors of transformation of the gas sector towards a more competitive structure and the positive effects of coordinated work between regulatory authorities and other governmental organizations and natural gas undertakings. The overall conclusion was that the unbundling of vertically integrated companies does not hamper security of supply and attracting investments in the sector if proper regulatory mechanisms are in place.
ERRA hopes that the project will further enhance cooperation between the two National Energy Regulatory Commissions and will help to promote setting up new initiatives. The success of the project will certainly make significant contributions towards strengthening topic-based cooperation between ERRA member regulatory authorities in the future.
The program report including the detailed agenda is available here.
In the framework of Ad Hoc ERRA Member Projects the Twinning Project between the Energy Market Regulatory Authority (EMERA) of Turkey and the Energy Regulatory Commission (ERC) of Macedonia was sucessfully implemented through two visits of the teams.
Both countries decided to work on the following three main topics.
- Investment Costs In Natural Gas Market
- Loss target rates for DSO’s in Electricity
- MarketWeighted Average Cost of Capital (WACC) Calculation
Overall impact of the project is to strengthen the capacities of the expert teams of EMRA and ERC on the specific topics of interest, as well as generally establish a stronger base for further cooperation between ERRA member countries. Possible Impacts of the project can be written as below;
- Delivering Analysis whether the Turkish approach and methodology used for dealing with natural gas investments can be applied in the Macedonian case. Actually these methods can be used as well as in other countries from the region which are in the initial phases of developing natural gas market (Albania, Kosovo, Montenegro, Bosnia and Herzegovina, etc.).
- Delivering documents which will include lessons learned from Turkey and Macedonia in setting up loss target rates with comparison analysis of both specific approaches and eventual recommendations for further improvement of regulatory practices.
- The return on the invested capital (WACC) is of utmost interest of the owners of the private companies and on the other side, maybe the most sensitive issue in the tariff/price regulation. Delivering document which will include comparison of EMRA and ERC experience in calculating WACC rates for the TSO’s and DSO’s in the Electricity and Natural Gas Markets, aimed at increasing knowledge and experience for this specific technical issue.
- This project will be presented in committee meetings and it will encourage other member countries for joint works and to share their practices with other member countries. Also, the results of this project can be applied for other countries in the neighbourhood of Macedonia.
For the program report including the detailed agenda please click here.
The ECOWAS Regional Electricity Regulatory Authority (ERERA) submitted an application in order to receive support in developing their Administrative Procedures for Regulation (APR). The purpose of APR is to formalize the process by which ERERA develops and issues regulations and other rule making processes and to address other actions of ERERA such as issuance of licenses, permit, approval notices and procedures for Public Hearings and Dispute settlement. The objective of the current consultancy project is to support ERERA with technical assistance/ expertise for adapting international best practices of APR to the specific case of ERERA.
From the proposals ERRA has received for the consultancy project, a US-based consultant, William H. Smith, Jr. was appointed to provide professional advice to ERERA. Mr. Smith has relevant experience in drafting and advising on the rules of several regulatory authorities of the US but he has also worked on international projects in Africa and Asia during his 40 years of experience in the field of energy regulation.
The Proposed Administrative Procedures for Regulation for ERERA can be downloaded from here.
In the frame of ERRA ad hoc consultancy projects an analysis paper was prepared for the Public Services Regulatory Commission (PSRC) of Armenia on the issue how to optimize the connection of new customers to electricity distribution network.