North Macedonia

Member Profile

Energy and Water Services Regulatory Commission (ERC)

Sectors Regulated:

  • Electricity
  • Natural Gas
  • District Heating
  • Water
  • Oil
  • liquid fuel
  • Wastewater/Sewage

ERRA Membership

  • Joined ERRA in 2004


  • Established in 2003


  • Legal basis
  • Energy Law (“Official Gazette of the Republic of Macedonia”, no. 16/11, 136/11, 79/13, 164/13, 41/14, 151/14, 33/15, 192/15, 215/15 and 6/16). Law on Determining Prices of Water Services (“Official Gazette of the Republic of Macedonia”, no. 7/16).
  • Responsibilities
  • 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: monitor the operation of energy markets, for the purpose of securing reliable energy and energy fuel supply; adopt regulations and tariff systems and adopt or approve tariff-setting methodologies for regulated energy activities; adopt regulations, price-setting and tariff system methodologies on relevant energy type and/or energy fuel delivery to captive consumers; adopt decisions on prices and tariffs, based on relevant regulations, methodologies and tariff systems; adopt regulations on price-setting methodology for oil derivatives and fuels for transport and price-setting decisions for oil derivatives and fuels for transport, pursuant to the commitments assumed by the Republic of Macedonia; approve the Gird Codes adopted by the energy system operators, by taking due consideration of their compliance with the commitments the Republic of Macedonia has assumed under the international treaties or the commitments of the energy system operators stemming from their membership in international associations; on the proposal from the relevant energy system operators, approve the terms and conditions and connection and access charges for relevant transmission and distribution systems; adopt Electricity Supply Rules, Heating Energy Supply Rules and Natural Gas Supply Rules; adopt Rules on Electricity Supply of Last Resort and Natural Gas Supply of Last Resort; adopt the Electricity Market Code and the Natural Gas Market Code; when needed, request relevant system operators or electricity market operator to change terms and conditions, tariffs, rules, mechanisms and methodologies governing the connection to, access to, balancing or use of relevant systems or market; take decisions upon applications submitted for exemption from the obligation on allowing third party access to energy systems or new interconnection gas pipelines; keep the Registry of Preferential Generators and adopt decisions on awarding the status of preferential generator; take due care for the protection and promotion of rights of energy and energy fuel consumers and of energy system users; propose measures aimed to encourage competition on energy markets; stipulate the terms and conditions, manner and procedure and adopt decisions on issuing, altering, transfer, suspension, revoking and termination of separate energy activity licenses and monitor the implementation of obligations stipulated in the energy activity licenses issued; approve transmission and distribution grid development and construction plans and monitor their timely adoption and implementation; approve and monitor the implementation of compliance programs adopted by relevant energy system operators, by means of which they secure full legal, financial, management and operational independence of operation from the vertically integrated energy companies to which they belong, as well as from related energy companies; resolve disputes occurred between entities performing regulated energy activities and their users, including cross-border disputes; cooperate with competent state authorities, local self-government unit bodies, entities performing energy activities, energy users and other organizations and institutions; submit proposals to competent authorities on taking measures pursuant to their competences and in a procedure stipulated by law, against entities performing their activities in violation to the present law; raise initiatives and propose adoption of new and amendments to existing laws and other regulations in the energy field; participate in relevant regional and international organizations and cooperate with other regulatory bodies, for the purpose of contributing to development of regional energy markets, pursuant to the commitments assumed under the ratified international treaties; adopt the Book of Operation and other internal acts related to its operation; and perform other matters pursuant to the present law. With the new Law on Setting Prices of Water Services and Amendments of the Energy Law, from January 2016, the Energy Regulatory Commission was entitled with new competences in the field of regulating prices of water services, i.e. setting up tariffs for the supply of drinking water, collection and disposal of urban wastewaters, as well as purification of wastewaters.
  • Authorities
  • 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 to: 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: ERE decisions are appealed to Court within 30 days from being published in the Official Journal. 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: 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.

Organisational structure

  • Organigram
  • Internal Structure
  • The Chairperson and the members of the board shall be appointed by the Parliament, with proposal from the Selection team. The Chair and the members of the Board are appointed for a term of 5 years with the right of re-appointment for another mandate. The team selecting board shall be composed of two representatives from the Parliament of Albania, respectively the chair of the responsible parliamentary 12 commission on energy and the chair of the responsible parliamentary commission on economy and from the responsible minister on energy. 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: Natural gas, liquid fuels and district heating Department; Electricity Department; Legal Department; Economic Department; Energy Markets Monitoring Department, and Administrative, Financial and General Affairs Department.
  • Working Employees
  • Number of Commissioners: 5
  • Number of Staff: 26
  • Budget
  • 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 2016 was approved by the Parliament of the Republic of Macedonia and the annual charge for 2016 is set at 0.052 %.

Population: 2 100 025 (2016 est.)

GDP / Capita: $ 14 172 (2015)

Territory: 25 713 km2 (150. in World rank)