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ERO presentation


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General information about the Regulator

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ERO presentation

  1. 1. General information about the Regulator
  2. 2. 2 Energy Regulatory Office • Established in 1998 on the basis of the Energy Law Act of 10 April 1997 (Journal of Law of 2012 item 1059, as amended) • President of Energy Regulatory Office - central authority of the state administration • Authority responsible for regulation in energy sector as well as promotion of competition • Executive body, without legislative initiative
  3. 3. 3 The President of ERO President of ERO regulates activity of energy enterprises aiming to balance interests of energy companies and customers Mission • regulation of the activities of energy companies • promotion of competition • balancing the interests of energy undertakings and consumers Sources competences derive from Energy law and secondary legislation ERO employees (civil servants) budget
  5. 5. 5 The President of ERO - main competences Currently the competences of the President of ERO result mainly from the Energy Law Act and cover e.g. the following activities: • granting and withdrawing licenses, • appointing systems operators, • approving transmission and distribution network codes, • agreeing energy enterprises draft development plans, • approving and controlling tariffs’ application, • issuing and redeeming certificates of origin for electricity from renewable sources and from co-generation,
  6. 6. 6 The President of ERO - main competences • setting forth methods of controlling and undertaking actions to improve efficiency of energy enterprises, • collecting and processing information relating to energy enterprises, • imposing fines, • promoting competition on the energy market in cooperation with other authorities, • controlling the quality standards of customer service and controlling, on the request of the customer, the quality parameters for gaseous fuels and electric energy, • settling disputes, • monitoring the operation of gas and power systems.
  7. 7. 7 The President of ERO Energy regulator’s activities comprise of creating conditions for developing competition and preventing negative effects of natural monopoly, promoting sustainable development, ensuring energy security, and encouraging economic and rational use of fuels and energy. The President of ERO regulates the activities of energy enterprises in accordance with the national energy policy, in order to balance the interests of all of the energy market actors, i.e. end users and energy enterprises.y The President of ERO
  8. 8. 8 Organisational structure President Vice-President Department of Gaseous and Liquid Fuels Markets Department of Electricity and Heat Markets Director General Department of Support Systems Department of Markets Development and Consumer Issues Department of Strategy and Public Communication Department of Legal Issues and Dispute Settlement Position for the Coordination of the Development of Smart Grids Office of the Director General International Cooperation Unit Position for the Protection of Classified Information Internal Audit 8 Branch Offices in: Szczecin, Gdansk, Poznan, Lublin, Lodz, Wroclaw, Katowice, Cracow
  9. 9. 9 Branch offices (BO): • North-West BO seated in Szczecin • North BO seated in Gdańsk • Western BO seated in Poznań • Eastern BO seated in Lublin • Middle-Western BO seated in Łódz • South-West BO seated in Wrocław • South BO seated in Katowice • South-East BO seated in Kraków BO Szczecin BO Gdańsk BO Katowice The competences of BOs are peformed on local level. BOs duties include: licencing, tariffs approval, control, dispute settlement, imposing fines. BO Lublin BO Poznań BO Łódź BO Wrocław BO Kraków Organisational structure
  10. 10. 10 Duties of the President of ERO
  11. 11. 11 Duties of the President of ERO Controlling the licensed enterprises’ adherence to the conditions of conducting business. Energy Law Act enables the President to control the activities of energy enterprises during the process of license granting or changing as well as through taking appropriate action after notification from other government body or user (e.g. in a form of complaint) of any violation of law or a suspicion of noncompliance with the law or conditions of the issued license. The result of revealing the incorrectness is an intervention with the use of available legal means, including financial penalties.
  12. 12. 12 Duties of the President of ERO Promotion of competition is a priority for the President of ERO manifesting itself in the current evaluation of the influence of adopted decisions on the development of competition on the energy market and optimal decision-making from this point of view.
  13. 13. 13 Duties of the President of ERO Among main activities of the regulator leading towards eliminating the barriers for competition on the energy market are: • approving the instruction for operation and maintenance of the grid, • approving the programs for the compliance of the distribution system operators, • monitoring the conditions for connecting the enterprises to the grid, • monitoring the mechanisms for balancing the system, • monitoring the conditions of gas storage, liquefying natural gas, • control over the realization of the obligation of public electricity, • sale (exchange obligation).
  14. 14. 14 Duties of the President of ERO The number of suppliers’ switching cases measures the development of the competitive energy market. The ERO President systematically monitors the degree of the use of the possibility to choose the energy provider by the authorized consumers. The results of the monitoring show that in Poland mostly the industrial and institutional consumers benefit from TPA rule.
  15. 15. 15 Duties of the President of ERO Approving the tariffs for transmission and distribution of energy. In electricity trading tariffs’ approval applies only to households. One of the key issues is developing a methodology of benchmarking analysis and financial projection for tariffication needs of the largest distribution system operators as well as establishing for those enterprises the amount of justified return on the capital.
  16. 16. 16 Duties of the President of ERO Tariffication of the infrastructural enterprises is an indirect method of monitoring the security of supply. During the tariffication process decisions on the extent of financing the assets indispensable for the fuel supply are being made. Approved tariffs assure good financial condition of enterprises but also the possibility to finance planned investments, modernizations and renovations.
  17. 17. Duties of the President of ERO One of the basic tools used by the regulator to maintain the security of energy and gas supply is the obligation imposed on the energy enterprises to agree 17 with the President of ERO their development plans in terms of satisfying the current and future energy and gas demand. On the basis of the agreed the plans, the infrastructural enterprises carry out investment and renovation tasks and ERO monitors the status of the realization of the ventures necessary for maintaining the appropriate level of reliability and quality of network services.
  18. 18. 18 Informational and Educational Policy Shaping the consumer awareness of the end users became an important goal in the ERO’s strategy, which aims at creating an open and competitive energy market. Many consumers do not know their rights and obligations. Therefore, informing them of the possibilities that appeared together with progressing process of market liberalization is crucial. ERO created an Information Centre for Energy Consumers „How to change the supplier”, also the Contact Point provides guidance for end users. The main responsibility of the Contact Point is to inform the consumers about their rights and obligations towards energy enterprises.
  19. 19. 19 Informational and Educational Policy ERO leads informational and educational campaigns using new technologies and tools such as: internet, TV, radio, billboards and press. A guidebook website - - prepared by ERO in the social campaign promoting the right to change the energy supplier is one of the examples..
  20. 20. The Department of Legal Issues and Dispute Settlement is a department of the Energy Regulatory Office (ERO), responsible for: • providing legal services to ERO, • drafting internal legal acts and legal opinions for other departments of ERO, • representing ERO in the course of legal proceedings before all courts (including the Supreme Court), • taking part in the legislative works regarding legal acts that refer to the competences of the President of ERO, • cooperating with other government bodies, representing the Republic of Poland in legal proceedings before the Court of Justice of the European Union, • resolving disputes between the electricty and gas markets’ players - under Article 8 of the Energy Law Act (however only with regard to connection of the renewable energy sources to the electricity or gas network). 20 Legal Issues and Dispute Settlement
  21. 21. The Energy Law Act ensures connection to the grid (public law obligation) Energy enterprise whose activity consists in the transmission or distribution of gaseous fuels or electricity has an obligation to conclude grid connection agreement with entities requesting connection to the grid, on terms of equal treatment, if it is technically and economically feasible to connect to the grid and supply energy or fuels, and the applicant meets the requirements for being connected to the grid and taking supply. The role of The President of ERO According to Article 8(1) of the Energy Law Act, any disputes over refusal to conclude a grid connection agreement shall be resolved by the President of ERO, upon a request of a party. 21 Division of dispute resolution - duties
  22. 22. The President of ERO shall determine whether: • the energy enterprise is obliged to conclude a grid connection agreement with entity requesting connection to grid, • the conditions referred to in Article 7(1) of the Energy Law Act are met, namely if it is technically and economically feasible to connect to grid and supply energy or fuels, • entity requesting connection to grid owns legal title to the real estate, to which gaseous fuels or electricity will be supplied, • entity requesting connection to grid meets the conditions for being connected to the grid and taking supply. 22 Division of dispute resolution - duties
  23. 23. Thank you for your attention Warsaw 2014