ANRE Tariff Regulation Activities. June 21-25, 2010, Chisinau, Moldova
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1 ANRE Tariff Regulation Activities June 21-25, 2010, Chisinau, Moldova
2 List of Regulated Markets Natural gas market Electricity market Thermal energy market Oil product market 2
3 Tariff Regulation Activities Tariff update Development of RIA (Regulatory Impact Analysis) and draft Methodologies of calculation Monitoring regulated activities Evaluation of activity monitoring results Participation in public sessions Consultations on Tariff Methodologies application i Ensuring transparency 3
4 Tariff Update (1) Approved tariffs Annual Reports Effective tariffs Finding deviations Updated tariffs 4
5 Tariff update (2) 1) Terms for tariff update 2) Initiator of tariff update Annually Unscheduled (during the year) Operator ANRE Modification of energy resources procurement price 3) Influencing factors Financial Deviation > 3% Modification of legislation (guaranteed minimum i salary, technical norms, standards etc.) Other factors (national currency exchange rate vs USA $, etc.) 5
6 Development of Regulatory Impact Analysis (RIA) and Draft Calculation Methodologies Consultations with stakeholders (operators 6s, consumers, NGOs, trade unions, patronages, Consumer Protection Authority) Preliminary RIA Final RIA Draft Methodology Approved Methodology
7 Monitoring Regulated Activities Monthly Report Quarterly Report Contains information regarding energy resources procurement, supplies (sales) and payment collection includes financial report, report on revenues and costs, with basic activity separated from auxiliary ones, itemized cost articles (quantity, volume, etc), turnover, technical parameters Annual and Activity Reports Developed on basis of annual financial reports pursuant to National Accounting Standards and the provisions of the Regulatory Accounting System approved by ANRE, with regulatory activity separated from auxiliary one 7
8 Evaluation of Activity Monitoring Results Purpose of evaluation verify possibilities and necessity to adjust tariffs, weighing up its advantages and disadvantages, in relation to different legal, social, economic and administrative criteria, predict impact of tariff adjustment Types of evaluation in the preceding stage (identify, select and substantiate tariff variants); in the follow-up (monitor approved tariffs and evaluate costs) Establishing results compare the data predicted in the studies made before tariff approval with the effective tariffs Providing recommendations present verified data and provide proposals to operators in terms of improving company management, minimizing non-productive costs 8
9 Participation in Public Sessions Presentation of draft tariffs Justification of necessity to adjust tariffs Answers to questions Explanation of a number of tariff components 9
10 Consultation on Tariff Methodology Application Operators in the energy sector Conformity of presented data with methodological principles Clarification of Tariff Methodology provisions Consumers Explanation of methodological principles Description of tariff adjustment criteria Presentation of requested indicators Operators from housing and Central and Local public communal service sector Authorities Presentation of methodological Presentation of methodological principles principles Examination of presented Consultation C ti on tariff application calculations from methodological Itemization of calculation for the point of view approved tariffs Identification of deviations in calculations Proposals to modify calculations 10
11 Ensuring Transparency (tariffs) Draft tariffs Approved tariffs Effective Tariffs Presentation of calculations to operators for coordination Public consultations, working sessions Participation in public sessions Publication in the Official Gazette Presentation of data when requested by consumers, CPA, ONG, patronages, trade unions, etc.) Informing massmedia Publication on the Publication on the Publication of the WEB page and in WEB page and in WEB page mass-media mass-media 11
12 Ensuring Transparency (Tariff Methodologies) Preliminary Analysis of Regulatory Impact Final Analysis of Regulatory Impact Draft Tariff Methodology Approved Methodology Presentation of RIA to operators, patronages, trade unions, NGOs, etc and working group Presentation of RIA to operators, patronages, trade unions, NGOs, etc and working group Presentation of RIA to operators, patronages, trade unions, etc. Publication in Official Gazette Publication on Agency WEB page Publication on Agency WEB page Publication on Agency WEB page Publication on Agency WEB page 12
13 Thank you! Silvia Pascaru, Senior Specialist Tariff Policy and Economic Analysis Department, ANRE Contacts: tel.(fax) spascaru@anre.md 13
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