Second (II) Session of ERO Board
The Energy Regulator is an independent institution which exercises the competences for regulation of the energy sector, as part of the institutions of the Republic of Kosovo and is legally and functionally separated from any other natural or legal person.
The mission of the Regulator is to create a sustainable energy market in Kosovo based on the principles of transparency and free competition, which adds value to both customers and enterprises operating in the energy sector.
The Energy Regulator was established by the Assembly of the Republic of Kosovo in June 2004.
o The regulator approves the methodologies which are used to calculate or determine the conditions and criteria for:
-connection to the power grid, transmission and distribution tariffs, as well as other methodologies for the operation of the energy sector
-Providing balancing services
- connections and access to cross-border infrastructure, including capacity allocation and congestion management procedures;
-Imposing a public service obligation on the license of any supplier, obliging that supplier to supply household customers and small customers with electricity of a certain quality under regulated criteria.
o provides the transparent and non-discriminatory functioning of energy markets, based on the principles of the free market, in terms of competitive activities and regulated activities;
o issues licenses to enterprises operating in the energy sector in the country;
o monitors and improves the safety of electricity , thermal energy and natural gas supply, including the provision of maintenance and construction of the required generation, transmission and distribution capacities, storage capacity and interconnection capacity;
o ensures that energy activities are carried out in a transparent and non-discriminatory manner, and are subject to public service obligations, as well as provide non-discriminatory access to transmission, distribution and interconnection systems;
o ensures that the regulated tariffs for energy activities are justifiable and set on the basis of an appropriate, simple and easy tariff methodology, including the provision of tariffs for transmission and distribution systems, adequate to enable the performance of necessary investments in systems, so that these investments guarantee the sustainability of the systems;
o monitors and prevent the abuse of dominant positions and uncompetitive practices by energy companies and take appropriate measures in accordance with this law and other relevant laws;
o ensures that customers have the right to connect their facilities to energy systems and receive electricity supply;
o provides protection to customers and licensees with adequate rules for resolving disputes;
o reviews and resolves customer complaints;
o ensure that interests between customers and energy enterprises are adequately balanced and that vulnerable customers are protected;
o act in accordance with the relevant decisions with the obligatory legal effect of the institutions established in the Energy Community, in cases when these institutions are mandated to take such decisions with the obligatory legal effect;
o promote the competitive domestic energy market, ensuring effective market opening for all customers and suppliers and providing the necessary conditions for effective and sustainable operation of energy networks, taking into account the long-term objectives of the sector, which deal with the regulatory authorities of the energy sector of Energy Community Contracting Parties;
o develops competitive and functional markets within Kosovo, as part of the Energy Community;
o removes restrictions on the trade of natural gas and electricity along Kosovo's national borders, including the development of relevant cross-border transmission capacities to meet demand and improve the integration of national markets, which can facilitate the flow of natural gas and electricity throughout the Energy Community;
o -Assists in the most efficient way in ensuring the development of safe, reliable, efficient and non-discriminatory systems, which are customer-oriented and adequately promote the system, in accordance with the general objectives of energy policies, energy efficiency and integration of large and small production facilities from renewable energy sources and production distributed both to the transmission network and to the distribution network;
o -facilitates network access to new generation capacities, in particular by removing barriers that could make it impossible for new parties from renewable energy soruces to access the market;
o ensures that system operators and system users enjoy long-term and short-term stimulating measures to increase system efficiency and enable market integration;
o ensures that customers benefit from the efficient functioning of their national market, from the promotion of effective competition and from the provision of assistance to ensure customer protection;
o Assists in achieving high standards of public service by contributing to the protection of vulnerable customers and by contributing to the adequacy of the data required for the supplier switching process by customers.
-ensures that electricity prices that are subject to price adjustment in order to provide universal service are cost reflective. Cost reflection should cover the real cost of electricity supply, including the cost of generation, the short-term marginal cost, reflecting the full generation portfolio, the required investment, the right rate of return, the cost of imports, the cost of supply services as well as bad debts;
o carries out annual reviews of methodologies and approved level of prices for final customers, and examines the need for price regulation for certain categories of customers, based on the objective of the public service followed.
o ensures that licensed operators operate in accordance with the applicable law;
o reviews and approves Development Plans of regulated Transmission and Distribution Energy Operators;
The Regulator reports to the Assembly of the Republic of Kosovo on a regular basis every year but also from time to time upon request.