National Agency for Energy Regulation (ANRE) Distribution. Operators

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1 National Agency for Energy Regulation (ANRE) Activity Performance I ndicators of Electricity Distribution Operators Chişinau, April 2011

2 Electricity tiit Distrib Ditib bution Operators Three companies in the power system of the Republic of Moldova electricity distribution operators: RED Union Feno osa; RED Nord; RED Nord-Vest;

3 Electricity Distribution Operators Electricity Distribution Network Operators RED Union Fenosa private company serving 63,51% of the total number of consumers from Moldova, supplying 73,94% of the total electricity volume; RED Nord state company, serving 22,93% of the total number of consumers from Moldova, supplying 17,17% of the total electricity volume; RED Nord-Vest state company, serving 13,56% of the total number of consumers from Moldova, supplying 8,89% of the total electricity volume;

4 Electricity Distribution Operators 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Energie distribuita, mil kwh "RED Nord-Vest" S.A "RED Nord" SA S.A "RED Union Fenosa" S.A Lungimea Numarul de retelelor. Km consumatori "RED Union Fenosa" S.A. "RED DNord" SA S.A. "RED Nord-Vest Vest" SA S.A.

5 Performance Ind dicators Electricity c ty Distribution Operato ors, os,performing in the Republic epubc of Moldova, are regulated companies the Agency approves the tariff for electricity supply to the end consumer and is liable to inc clude in the tariff all justified costs incurred by operators. Also, the services offered by those companies must meet a minimum quality level, required dby consumers. So, ANRE permanently monitors the following indicators: Level of electricity loss withi in distribution networks; Quality indicators of supplied services;

6 Electricity it Loss In , 2001, electricity loss recorded in distribution networks used to be very significant: RED Union Fenosa 34 4%; RED Nord 29%; RED Nord-Vest 40%; In order to reduce loss, and consequently costs included d in the tariff, th he Agency imposed a gradual reduction of the level of loss included in the tariff, during the pe eriod , from 19,2% to 13%;

7 Level of Electricit it ty Loss 30,0 25,0 20,0 15,0 10,0 5,0 28,4 19,2 Pierderile de energie electrică ale RED Nord în , % 24,4 20,1 18,0 17,2 16,9 16,3 16,0 15,5 14,4 15,0 13,2 13,6 11,5 11,0 13,3 11,1 13,0 10,4 45, ,0 35,0 30,0 25,0 20,0 15,0 10,0 5,0 39,9 19,2 Pierderile de energie electrică ale RED Nord-Vest în , % 35,4 31,0 25,4 19,99 18,0 17,2 16,3 16,0 15,8 13,8 13,6 15,5 13,3 15,0 14,5 14,0 13,0 13,0 0, , RED Nord, pierderi normative RED Nord, pierderi efective RED Nord-Vest, pierderi normative RED Nord-Vest, pierderi efective 40,0 Pierderile de energie electrică ale RED Union Fenosa în , % 35,0 34,0 30,0 29,3 29,0 25,0 23,4 21,4 20,0 15,0 19,2 17,7 17,0 14,4 16,9 16,9 14,44 14,4 14,4 15,4 14,0 13,7 10,0 14,0 13,5 13,0 5,0 0, RED Union Fenosa, pierderi normative RED Union Fenosa, pierderi efective

8 Service Quality The quality of services provided d by di itibti istribution operators has been an issue with ANRE since However, staring 2008, the service qu uality issue became particularly important, which fact is proved by the increasing number of complaints from electricity consumers, discontent with service quality. 100% 90% 80% 70% 60% 50% 40% 30% 20% Altele Extinderea reţelelor Tarife Facturare Echipament de măsurare Deconectare Calitatea serviciilor iil Racordare Contractare Consum fraudulos 10% 0%

9 Service Quality According to ANRE reg gulations, the quality of electricity distribution services is appreciated by the fo ollowing categories of indicators: Indicators for continuity Indicators for quality of Indicators for quality of of electricity supply supplied electricity relations between operators and consumer rs (commercial quality).

10 Continuity it of Electri city Supply General continuity indicators, regularly monitored by ANRE are: SAIDI - System Average Interruption Duration Index; SAIFI - System Average Interruption Frequency Index; CAIDI - Customer Average Interrup ption Duration Index; These indicators are calculated for emergency interruptions, lasting longer than 3 minutes, occurring in average-tension distribution networks (10 kv). Similarly with electricity loss, the Agenc cy establishes the values of SAIDI indicator, which are reduced gradually: hours, hours, hours, hours, hours. Where the electricity distribution operator fails to reach the SAIDI level as established, ANRE has the right to penalize by tariff reduction.

11 Continuity it of Electr iit icity Supply Evolution of SAIDI Value (h ours) during

12 Continuity it of Electri ricity it Supply Ocniţa 6,03 Briceni 496 4,96 Edineţ 4,51 Drochia 2,79 Soroca 10,93 Donduşeni 9,47 Rezina 12,17 Şoldăneşti 10,20 Floreşti 10,50 Sângerei 3,82 Ungheni 6,38 Râşcani 2,88 Glodeni 4,47 Faleşti 4,49 Balţi 1,29 Vulcăneşti 16,36 Taraclia 9,85 Leova 10,91 Comrat 5,78 Cimişlia 9,25 Ciadîr-Lunga 7,75 Cantemir 9,01 Cahul 8,20 Telenesti 14,43 Straseni 14,97 Ştefan-Vodă 18,34 Orhei 22,79 Nisporeni 21,53 Ialoveni 23,56 Hincesti 21,07 Căuşeni 22,93 Calarasi 27,50 Anenii-Noi 13,49 Criuleni 20,13 Chisinau 3,13 0,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 16,00 18,00 20,00 22,00 24,00 26,00 28,00 30,00

13 Continuity it of Electr ricity iit Supply Level of SAIFI Indicator during Values of CAIDI indicator (hours) during Union Fenosa RED Nord RED Nord-Vest Union Fenosa RED Nord RED Nord-Vest

14 Electricity it Quality In Moldova, the Standard GOST Electricity Quality. Electromagnetic compatibility of electrical equipment. Electricity quality paramete ers of in public electricity systems is used to appreciate electricity quality parameters. It is an inter-state standard, used in ex-ussr, which provides for electricity quality parameters. The Agency does not directly monitor electricity quality, however, the regulations provide for terms of addressing consumers complaints on breaches of electricity quality parameters.

15 Electricity it Quality Terms of Addressing Bre eaches of Electricity Quality Parameters: Telephone calls from co nsumers: 24 hours after the calls, in case of electrical surges or voltage drops; Written complaints: 5 days from receipt of complaints where for the restoration of the quality parameters it is necessary to perform simple preventive work, such as redistribution of electrical charges on the phase, change of voltage taps in po wer transformers, etc.; 30 days where it is required to increase network capacity or replace power transformer etc; 60 days where e it is necessa ary aytodesg design pojectsa projects and ddepoy deploy electric lines or line sectors;

16 Commercial Qualit ty ANRE monitors the following situations, related to commercial quality of services: Announcement of scheduled interruptions (3 days before the interruption for small consumers and 7 days for consumers using power more than 100 kw). Issuance of connection notifications (15 calendar days) Conclusion of electricity supply contracts (2 working days for household consumers and 5 working days for other consumers); Connection to the electricity distribution network (3 calendar days). Where the distribution operator fails to comply with this term, the consumer or potential consumer has the right to damages (25% of the connection fee for every day of delay). Re-connection of consumer ss installa ation to the electricity distribution network (2 working days). Where the supplier (DSO) fails to comply with the term, the consumer may require compensation (25% of the re-connection fee for every day of delay).

17 Reporting and Rep port tpublication Distribution network operators are liable to present annual reports, according to pre-established form, on level l of quality indicators. Monthly, Lunar, distribution network operators are liable to present reports on interruptions occurring within their networks. Annual reports on service quality are to be made publicly available on the Agency s Web page, as part of ANRE s report on activity. Where distribution operators fail to comply with certain indicators, ANRE is entitled to apply reduction of dis stribution tib ti tariff. Thus, after considering i the reports of the distribution network operators for 2009, ANRE applied 0.5% tariff reduction to one of the operators. The reduction was applied for non-compliance with the terms for solving consumer complaints regarding breach of electricity quality parameters.

18 Unsolved Problem ms Currently, the quality of services provided by the transportation network operator is not monitored; Limited possibility to automatically record interruptions at average voltage level l (10 kv) ); No possibility to monitor interruptions in low voltage networks (0,4 kv) manual recording of interruptions; Complicated mechanism of damages to consumers in case of operators non-compliance with the established level of guaranteed quality indicators s; End consumers, affected by low-quality electricity supply, do not feel the effect of tariff re duction. The Agency proposed modifications to this mechanism, so that in these situations affected consumers be compensated.

19 Lilian Ba arcaru Service Quality Monitoring Department anre.md

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