Power market Natural gas market Redesign of mechanisms for RE promotion and integration
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1 Recent Regulatory Developments at ANRE in National Agency for Energy Regulation of the Republic of Moldova Chisinau, March 24-28, 2014
2 Current Objectives and Activities Power market Natural gas market Redesign of mechanisms for RE promotion and integration Other regulatory issues Main challenges for 2014
3 Power market Market Liberalization In December 2009, the Parliament adopted a new version of the Law on electricity, transposing EU Directive 2003/54/CE (in force since February 2010); According to the Law on electricity starting from January 1, 2013, the power market was opened to all non-household customers, however, no alternative suppliers have emerged so far; The Law provides that, starting from January 1, 2015, the market will be opened to all final consumers;
4 Power market Market Liberalization In the context of market liberalization, DSOs are obliged to finalize unbundling of accounts and functional unbundling of activities (in progress); By the end of this year there DSOs must legally unbundle the electricity distribution activity from the activity of electricity supply at regulated tariffs. TSO is legally unbundled from electricity supply and electricity production. In march 2013, new methodologies for the calculation and approval of tariffs for the electricity distribution service and for regulated tariffs for electricity supply entered into force (ANRE Resolution No 497); Currently, ANRE is in process of revising base costs for distribution and supply activities;
5 Power market Market Liberalization In November 2013 ANRE approved the Regulation on switching of the electricity supplier by eligible consumers; Regulation on switching provides rules for grid operators and suppliers in order to enable an eligible customer to switch to another electricity supplier within 20 calendar days. In November 2013 ANRE approved amendments to the Regulation on supply and use of electricity. The amendments are mainly related to the separation of obligations and rights of distribution network operators and suppliers of electricity at regulated tariffs, in relation to final consumers.
6 Power market Amendments to the Law on electricity, developed in order to transpose EU Directive 2005/89/CE related to security of electricity supply, were finally adopted by the Parliament; A draft Regulation on capacity allocation for cross-border electricity exchanges, transposing EU Regulation No 1228/2003/EC, was developed and will be proposed for approval by ANRE Administration Council after the amendments to the Law on electricity will enter into force.
7 Natural gas market Market Liberalization In December 2009, the Parliament adopted a new version of the Law on natural gas, transposing EU Directive 2003/55/CE (in force since February 2010); The Law on natural gas establishes same principles regarding effective market liberalization. De jure, natural gas market was fully opened for all final customers in In practice, there are no alternative suppliers of natural gas on Moldovan market (100% import from Russian Federation)
8 Natural gas market Market Liberalization To create necessary prerequisites for an effective liberalization, starting from January 1, 2013, natural gas distribution and supply functions were unbundled for DSOs serving over 100 thousand final consumers; following its reorganization, Chisinau-gaz preserved the function of DSO, while SA Moldovagaz became the natural gas supplier at regulated tariffs for the related area; TSO is legally and functionally unbundled, but not ownership unbundled;
9 Natural gas market Market Liberalization Several draft regulations were developed by ANRE and are to be approved by the Administration Council: A draft of new methodology for calculation, approval and adjustment of tariffs for natural gas activities; A draft Regulation on the procedure of switching of the natural gas supplier by final consumers; Amendments to the Regulation on supply and use of natural gas (draft).
10 Natural gas market A Draft law amending the Law on natural gas in order to transpose the EU Directive 2004/67/CE related to security of natural gas supply is currently being revised in Parliament; A draft Regulation was developed on the conditions of access to natural gas transportation networks transposing EU Regulation No 1775/2005 After entry into force of the amendments to the Law on natural gas, the draft Regulation will be proposed for approval to ANRE Administration Council
11 Redesign of mechanisms for RE promotion and integration A new Law on promotion of use of energy from renewable sources was developed by ANRE and was sent to the Ministry of Economy; In February 2014, a draft law on promotion of use of energy from renewable sources was approved by the Government and sent to Parliament for adoption.
12 Other regulatory issues A draft Law on heat was developed by the Ministry of Economy and sent by Government to the Parliament for adoption; According to the Draft, the functions of ANRE regarding regulation of heating sector will be largely extended. Until now the Agency had only the function to approve the methodology and, subsequently, the tariffs for heat supplied to consumers through centralized systems (district heating). A draft Law onpublic service for water supply and sewage was adopted by the Parliament and published in the Official Journal of Moldova on March 14, 2014 The Law will enter into force in September 2014; Until September 2014, ANRE will have to draft and approve the relevant secondary legislation.
13 Main challenges for 2014 Practical aspects of unbundling the supply and distribution activities both on the power market and the natural gas market; Review of the market model for electricity and natural gas in the context of market liberalization; Proper implementation of new mechanisms established in the draft Law on the promotion of use of energy from renewable sources (the mechanism of central buyer, the GoO system, auctions for new RES-E capacities, etc.);
14 Main challenges for 2014 Transposition of principles from 3 rd energy packageinto the primary and secondary legislation: EU Directive 2009/72/EC, concerning common rules for the internal market in electricity; Directive 2009/73/EC, concerning common rules for the internal market in natural gas; Regulation (EC) No 714/2009 on conditions for access to the network for cross-border exchanges in electricity (+ Network Codes) and Regulation (EC) No 715/2009 on conditions for access to the natural gas transmission networks (+ Network codes).
15 Thank you for your attention
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