Course description

Economic, legal, technical and financial skills are central to the administrative and economic regulation of the public utilities. The constantly changing environment not only requires proper response from the regulatory side, it is also essential to be aware of the global trends in the energy sector. The current economic climate across the world and the emergence of renewable energy sources have pointed to the need of addressing recent technological innovations that demand a different approach to regulatory practice. Corresponding to these new challenges the training course aims to focus on some of the discussed topics from a “smart perspective”.

Course Objectives:

This 6-day training course will be organised into thematic modules focusing on the fundamental issues and global trends of energy sector regulation. The training program combines “classic” regulation under the traditional vertically integrated industry structure with up-to-date issues of regulation by discussing the topics from a “smart” point of view. The prime objective of the course is to provide basic technical, economic and legal regulatory skills that are needed to design and manage successful regulatory systems for the energy industry and at the same time provide insights to the recent challenges brought by stringent climate objectives and technological development.

During the Course the following broad themes are addressed:

Day 1

Role and Functions of the Regulator

Day 2

Site Visit of Paks Nuclear Power Plant

Day 3

Price & Tariff Regulation

Day 4

Competition and Regulation in Electricity and Gas Markets 

Day 5

Integrating Renewable Energy  – Regulatory  Challenges 

Day 6

Technology Driven Transformation of Energy markets 

& Practical Application

  • Simulations
  • Exercises
  • Case studies
  • Presentations

Target Audience:

The course is available to practising energy regulators and to non-regulators such as ministry and local government representatives, banking institutions, law and investment firms, consulting companies and regulated utility companies.

Course Syllabus:

MODULE 1 – ROLE AND FUNCTIONS OF THE REGULATOR (Day 1 – Monday)

The principal objectives of the regulatory institutions are a) to protect energy consumers from monopoly pricing and behaviour; b) to protect private investment from politically dictated prices and from regulatory uncertainty and c) to monitor and foster energy market competition. In order to meet the above objectives under a private and increasingly competitive industry setting, the regulator should be a decision making body highly independent from short-term political influences and direct industry interests. This module provides participants with an overview on the objectives as well as on the institutional setting and decision making processes of energy regulatory institutions. Common tasks for energy regulators (stemming from the need for economic regulation) are discussed. Ownership structure in the regulated sector has strong impact on the regulation. Publicly owned utilities are still dominant form in many economies (both in emerging and developed markets), so the challenges regulators face in this situation will be looked at in a dedicated lecture. Also, a dedicated lecture will introduce the participants to the core terminology of the energy sector and to the fundamental concept of national energy accounts.

Day 2– Tuesday: The program will feature a day-long visit of the Paks Nuclear Power Plant which has been generating electricity for more than 30 years. The plant will be extended with two new power units (each with the capacity of 1200MW by the late 2020s). The program will include presentation of the Visitors’ Centre followed by a guided tour of the Secondary System.

MODULE 2 – PRICE AND TARIFF REGULATION (Day 3 –Wednesday)

One of the principal tasks of energy regulators is to set or authorise regulated prices for the companies under regulation. Participants will be provided with the theoretical basics and also an overview of the price regulatory process, including the setting of the revenue requirement, tariff design alternatives and questions in the choice of a price regulatory regime. Participants will be involved in a hands-on exercise to determine a tariff based on their new skills. A dedicated presentation will cover retail price regulation and social issues in emerging economies. The available models of retail price regulation, pro and contras of the various price setting mechanism will be look at in details. Emerging social issues of market reforms, possible instruments to handle social issues (energy poverty, coverage issues), and their advantages – disadvantages will be introduced.

MODULE 3 – COMPETITION AND REGULATION IN ELECTRICITY AND GAS MARKETS (Day 4 –Thursday)

A major change in electricity industry structure which also transforms the regulator’s entire job is when competition is introduced into the operations of the traditionally vertically integrated sector. This part of the course will introduce the basic ideas and principles behind the restructuring and liberalisation process in the electricity sector, with a special emphasis on the competitiveness issue. The practice of unbundling and providing regulated access to essential facilities is discussed. Various models of wholesale and retail competition are introduced.. Issues with network access and long term contract on competition will be addressed in details. Incentive regulation as opposed to the traditional cost based regulation will be introduced through a case study of Oman, in which core areas, such as loss reduction incentives and reserve capacity optimisation incentives will be introduced. Specialties of gas market regulations and the global trends shaping the competitiveness of the sector. The value chain in natural gas markets, operations of LNG markets, the present trends in the EU gas market regulation (source diversification and liberalization) and the infrastructure regulation will be introduced with illustrative cases. Special focus on security of supply issues in gas markets will be introduced and highlighted with recent examples.

MODULE 4– INTEGRATING RENWABLE ENERGY AND ITS REGULATORY CHALLENGES (Day 5- Friday)

Climate change concerns coupled with high oil prices and increasing government support are driving renewable energy legislation and incentives all around the world. The role of energy regulators in recognizing the advantages of renewables is very complex. Regulators are to provide necessary supports to develop new project while these incentives must be consistent with basic regulatory policies. RES tenders are utilised more frequently worldwide to improve support efficiency, and it will be scrutinized based on examples of best practices of EU member states as well as in non-EU countries. Two country examples from Turkey and Oman will be used to learn from their experiences on the renewable technology deployment. Both countries demonstrate that emerging markets could also apply advanced renewable support techniques, such as auction schemes. The presentations will highlight how burning issues in network connections or promoting residential rooftop system are solved in the two case study countries.

MODULE 5 – TECHNOLOGY DRIVEN TRANSFORMATION OF ENERGY MARKETS (Day 6 – Saturday)

Technological change profoundly transforms the operation and the regulation of the energy markets in both developed and developing word. Digitalisation and decentralised energy production brings new solutions to the energy sectors, including both the electricity and natural gas markets. Digitalisation changes not only the metering services and trading platforms, but changes the whole structure of the electricity markets, including generation, storage, network operation and also the roles and possibilities of the various participants. The trend that transformed the telecom and transport sectors arrive to the energy sector as well. New actors, such as prosumers, energy communities and platform operators emerge, and the formerly highly centralised systems become more decentralised where also the demand side changes its passive role to a more active participation in the energy markets, as Demand Side Management (DSM) options also emerge. Renewable technology development changes profoundly the conventional business models dominating electricity markets. For rural areas in the developing word solutions such as mini grids become more and more feasible and sustainable with the appearance of local PV solutions. At the same time centralised systems with steeply increasing renewable shares face stronger flexibility challenges, as the dominating new technologies (both PV and wind generation) are weather dependent characterised by volatile production patterns. The increased demand for flexibility services create new challenges to the electricity systems, where a cascade of various technological options, as well as system management solutions emerge, e.g. various storage options, increased network connections, and at the same time demand side response options are more frequently applied as well. These flexibility solutions will also be introduced in the last day of the course.

Course registration

 

ERRA Full MembersEUR 1 230 + 27% VAT
ERRA Associate MembersEUR 1 440 + 27% VAT
Non-Member RegulatorsEUR 1 650 + 27% VAT
Non-regulatorsEUR 1 990 + 27% VAT

Tuition fee includes: training materials, lunches, coffee breaks during the training course .

Accommodation cost for 6 nights can be added to the tuition fee in the amount of 456 EUR if you chose to stay at the training venue (European Youth Centre Budapest (EYCB); http://www.eycb.coe.int).

Please be informed that 6 nights of accommodation at the course venue – European Youth Center (EYCB) can be added (June 28 – July 4). The venue provides a very convenient access to the classroom where the course is organised.

Participants are accommodated in private rooms with private bathroom included, but there are no television and air conditioner in the rooms. For photos please visit: https://www.coe.int/en/web/youth/eycb-guestroomsIn case you need extra nights for your stay, a separate form will be sent to you with the confirmation letter. Single room rate is € 76/night (including breakfast and VAT).

Summer School 2020

Please note that ERRA is not in the position to provide participants with funds or assistance in finding the necessary funds regarding their participation fees and does not have sponsored places for the training. Thus, we kindly ask you to submit your registration only in case the funds to cover your participation, including tuition fee, travel, etc. are available for you and your participation is already approved by your delegating company.

1230 2446  + VAT

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ROLE AND FUNCTIONS OF THE REGULATOR

The principal objectives of the regulatory institutions are a) to protect energy consumers from monopoly pricing and behaviour; b) to protect private investment from politically dictated prices and from regulatory uncertainty and c) to monitor and foster energy market competition. In order to meet the above objectives under a private and increasingly competitive industry setting, the regulator should be a decision making body highly independent from short-term political influences and direct industry interests. This module provides participants with an overview on the objectives as well as on the institutional setting and decision making processes of energy regulatory institutions. Common tasks for energy regulators (stemming from the need for economic regulation) are discussed. Ownership structure in the regulated sector has strong impact on the regulation. Publicly owned utilities are still dominant form in many economies (both in emerging and developed markets), so the challenges regulators face in this situation will be looked at in a dedicated lecture. Also, a dedicated lecture will introduce the participants to the core terminology of the energy sector and to the fundamental concept of national energy accounts.

Site Visit of Paks Nuclear Power Plant

Will be dedicated to a site visit to the PAKS nuclear power plant, with presentation on the plant operations

PRICE AND TARIFF REGULATION

One of the principal tasks of energy regulators is to set or authorise regulated prices for the companies under regulation. Participants will be provided with the theoretical basics and also an overview of the price regulatory process, including the setting of the revenue requirement, tariff design alternatives and questions in the choice of a price regulatory regime. Participants will be involved in a hands-on exercise to determine a tariff based on their new skills. A dedicated presentation will cover retail price regulation and social issues in emerging economies. The available models of retail price regulation, pro and contras of the various price setting mechanism will be look at in details. Emerging social issues of market reforms, possible instruments to handle social issues (energy poverty, coverage issues), and their advantages – disadvantages will be introduced.

COMPETITION AND REGULATION IN ELECTRICITY AND GAS MARKETS

A major change in electricity industry structure which also transforms the regulator’s entire job is when competition is introduced into the operations of the traditionally vertically integrated sector. This part of the course will introduce the basic ideas and principles behind the restructuring and liberalisation process in the electricity sector, with a special emphasis on the competitiveness issue. The practice of unbundling and providing regulated access to essential facilities is discussed. Various models of wholesale and retail competition are introduced.. Issues with network access and long term contract on competition will be addressed in details. Incentive regulation as opposed to the traditional cost based regulation will be introduced through a case study of Oman, in which core areas, such as loss reduction incentives and reserve capacity optimisation incentives will be introduced. Specialties of gas market regulations and the global trends shaping the competitiveness of the sector. The value chain in natural gas markets, operations of LNG markets, the present trends in the EU gas market regulation (source diversification and liberalization) and the infrastructure regulation will be introduced with illustrative cases. Special focus on security of supply issues in gas markets will be introduced and highlighted with recent examples.

INTEGRATING RENWABLE ENERGY AND ITS REGULATORY CHALLENGES

Climate change concerns coupled with high oil prices and increasing government support are driving renewable energy legislation and incentives all around the world. The role of energy regulators in recognizing the advantages of renewables is very complex. Regulators are to provide necessary supports to develop new project while these incentives must be consistent with basic regulatory policies. RES tenders are utilised more frequently worldwide to improve support efficiency, and it will be scrutinized based on examples of best practices of EU member states as well as in non-EU countries. Two country examples from Turkey and Oman will be used to learn from their experiences on the renewable technology deployment. Both countries demonstrate that emerging markets could also apply advanced renewable support techniques, such as auction schemes. The presentations will highlight how burning issues in network connections or promoting residential rooftop system are solved in the two case study countries.

TECHNOLOGY DRIVEN TRANSFORMATION OF ENERGY MARKETS

Technological change profoundly transforms the operation and the regulation of the energy markets in both developed and developing word. Digitalisation and decentralised energy production brings new solutions to the energy sectors, including both the electricity and natural gas markets. Digitalisation changes not only the metering services and trading platforms, but changes the whole structure of the electricity markets, including generation, storage, network operation and also the roles and possibilities of the various participants. The trend that transformed the telecom and transport sectors arrive to the energy sector as well. New actors, such as prosumers, energy communities and platform operators emerge, and the formerly highly centralised systems become more decentralised where also the demand side changes its passive role to a more active participation in the energy markets, as Demand Side Management (DSM) options also emerge. Renewable technology development changes profoundly the conventional business models dominating electricity markets. For rural areas in the developing word solutions such as mini grids become more and more feasible and sustainable with the appearance of local PV solutions. At the same time centralised systems with steeply increasing renewable shares face stronger flexibility challenges, as the dominating new technologies (both PV and wind generation) are weather dependent characterised by volatile production patterns. The increased demand for flexibility services create new challenges to the electricity systems, where a cascade of various technological options, as well as system management solutions emerge, e.g. various storage options, increased network connections, and at the same time demand side response options are more frequently applied as well. These flexibility solutions will also be introduced in the last day of the course.

Please note that Training Materials are available only for registered participants (who fully paid the tuition fee) and ERRA Members. Please LOGIN with your username and password.

 

Organization
For the list of participants please contact the Secretariat.

Venue/ Accommodation

European Youth Centre Budapest (EYCB)
Address: Zivatar u. 1-3., H-1024 Budapest
Tel.: +36 1 438 1030 ǀ Fax: +36 1 212 4076
E-mail:
Web: www.eycb.coe.int

Tuition fee includes: training materials, lunches, coffee breaks during the training course and a social programme.

Please be informed that 6 nights of accommodation at the course venue – European Youth Center (EYCB) can be added (June 30 – July 06). The venue provides a very convenient access to the classroom where the course is organised.

Participants are accommodated in private rooms with private bathroom included, but there are no television and air conditioner in the rooms. For photos please visit: https://www.coe.int/en/web/youth/eycb-guestrooms. In case you need extra nights for your stay, a separate form will be sent to you with the confirmation letter. Single room rate is € 76/night (including breakfast and VAT).

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Visa

Please verify the visa requirements of Hungary by contacting the Hungarian Embassy in your country. The list of diplomatic missions is available here: http://www.kormany.hu/en/ministry-of-foreign-affairs-and-trade/missions. The list of countries whose citizens do not require visas to enter Hungary can be found at http://konzuliszolgalat.kormany.hu/visa-waiver-agreements.

List of third countries, where a Schengen state issues visas on behalf of Hungary is available on this page: http://konzuliszolgalat.kormany.hu/visa-issuance-on-behalf-of-hungary.

In case you need an entry visa, please immediately contact the ERRA Secretariat! To prepare a visa invitation letter for you, please send us your passport copy. 


Airport Transfers/ Travel Information

Budapest Ferenc Liszt International Airport (formerly Ferihegy):

  • Located 16 kilometres (9,9 mi) east-southeast of the centre of Budapest
  • Central telephone number for information: +36 1 296 7000
  • http://www.bud.hu/english
  • The transfer time to/from the airport to the downtown is approximately 45-60 minutes (subject to traffic)

Shuttle bus

miniBUD (http://www.minibud.hu/) is the official airport shuttle service company providing fixed-priced transfer service between Budapest Airport – Budapest city center – Budapest Airport. The miniBUD airport shuttle service counters located on the arrivals level of Budapest Airport.

Rate to the EYCB:

  • one-way: HUF 4400 (approx. 15,71 EUR)
  • round trip: HUF 7900 (approx. 28,21EUR)

Taxi from the Airport

There is an official airport taxi company (Főtaxi) available at the Arrival Hall of the Terminals. All Főtaxi cars are equipped with POS terminal, therefore passengers can pay with credit card as well. Reservations can be made in person at Főtaxi booths located at the exit at Terminal 2A and 2B. At the taxi rank in front of the stands taxis are parking continuously waiting for passengers.

Rates (for reference purposes only): around HUF 8500 (27 EUR) for one way.

Please avoid using non-regulated providers offering taxi at the terminal buildings!

Public Transportation

A direct transfer bus ‘100E’ operates between the airport and Deák Ferenc tér in the city centre. A special fare applies: the “Airport shuttle bus single ticket” for the price of 900 HUF is required for each trip.


Calling a Taxi in Budapest

Please find below the list of larger taxi companies in Budapest:

  • Taxi 2000: +36 1 200 0000
  • Citytaxi: +36 1 211 1111
  • Főtaxi: +36 1 222 2222
  • 6×6 Taxi: +36 1 666 6666
Public Transport

Budapest’s network of public transport services (BKK) includes buses, trolleybuses, trams, subway (Metró) and over ground suburban trains (HÉV).

For ticket prices and more information please visit the official website of BKK: http://www.bkk.hu/en/tickets-and-passes/prices/ 

Booklet in PDF with useful information is available here >>

Railway Stations

International trains operate from the three largest stations:

  • Keleti pályaudvar: VIII., Baross tér. Tel: (+36-1) 413 – 4610.
  • Nyugati pályaudvar: VI., Nyugati tér Tel: (+36-1) 349-8503
  • Déli pályaudvar I. Krisztina krt. 37. Tel: (+36-1) 375-6593

All three international railway stations are part of the Budapest Underground system, the Metró. The Déli is on the Red (Number 2) line, Keleti is on the Red (Number 2) and Green (Number 4) lines and the Nyugati is on the Blue (Number 3) line.

Official website of the Hungarian State Railways: https://www.mavcsoport.hu/en


General Information

Currency:    HUF (Hungarian Forint)
Currency Exchange Rates: http://www.mnb.hu/en/arfolyamok

Time zone: UTC/GMT +1 hours

Electricity: 230 V/50 Hz (Europlug)

Dial Codes: +36 –

Emergency Calls:  112 (ambulance, police and fire)

Smoking: Smoking is not permitted in public places, dining and meeting facilities.

Weather: http://www.meteoprog.hu/en/weather/Budapest/
http://koponyeg.hu/t/Budapest

Information on
Budapest:
 http://bebudapest.hu/
http://www.budapest.com/
https://www.budapestinfo.hu/home.html
http://www.funzine.hu/