REGULATORY FRAMEWORK AND MARKET
OPENING
Krenar Bujupi
ERO Board Member
1 March 2016, Prishtina
www.ero-ks.org
KOSOVO ENERGY SECTOR
Regulated and Competitive Elements
Transmission System
Power Generation
Cogeneration
Distribution
System
Supply Retail
Services subject to
regulatory control
System Dispatch
Competitive
services
Potentially competitive
services
Ancillary
Services
Wholesale Supply
Metering and
Billing
2
TOTAL MAR OF THE SECTOR (€m)
215.6
224.6 224.6
249.2
256.5 253.5
256.5
274.3
256.7
243.5
180.3
135.0
2007
136.9
2008
139.8
156.4
2009
2010
2011
2012
2013
2014
2015
2016
2017
MULTI YEAR TARIFF
Allowed with Periodic Review
Annual adjustment
MAR before privatization of Distribution and Supply
Proposed MAR for 2016
3
TOTAL MAR OF THE SECTOR (€m)
300
250
46
29
200
54
32
29
17
24
100
22
13
150
17
9
10
10
24
24
12
21
9
13
118
126
33
14
32
48
47
23
18
140
147
40
17
12
149
50
67
80
87
94
2007
2008
2009
107
129
0
2010
2011
2012
2013
2014
2015
KEK Generation (inc. lignite) €m
KOSTT TSO+MO (exc. losses) €m
KEDS DSO (exc. losses) €m
KESCO PES (other net power purchase) €m
2016
4
AVERAGE PRICE FOR HOUSEHOLD CUSTOMERS FOR 2014
€c/kWh
Slovakia
13.2
Croatia
10.5
Turkey
9.8
Hungary
9.5
Montenegro
8.8
Moldova
8.5
Macedonia
6.8
Bosnia
6.5
Albania
6.2
Serbia
5.4
Kosovo
5.2
5
AVERAGE PRICE FOR NON-HOUSEHOLD CUSTOMERS FOR 2014
€c/kWh
Slovakia
11.71
Macedonia
10.8
Croatia
9.99
Hungary
8.4
Albania
8.1
Turkey
7.9
Moldova
7.9
Serbia
7.6
Kosovo
7.3
Montenegro
6.5
Bosnia
6.5
6
CONSUMPTION, PRODUCTION AND LOAD SHEDDING (GWh)
7,000
5,862
6,000
5,275
5,506
5,584
4,944
5,000
4,259
4,283
4,584
5,037
5,167
5,399
5,467
5,314
5,520
5,570
5,503
4,894
4,798
4,527
4,000
3,999
3,997
4,333
3,000
2,000
778
1,000
431
205
333
154
53
87
2013
2014
67
0
2005
2006
2007
2008
Consumption
2009
2010
Production
2011
2012
2015
Load Shedding
7
IMPORT AND EXPORT
932
1,000
900
818
816
800
857
700
611
540
600
684
625
522
458
500
349
400
553
393
473
300
352
371
2010
2011
452
200
100
0
170
41
80
2005
2006
2007
125
114
2008
2009
Import (GWh)
100
2014
2015
52
52
33
33
2014
2015
Eksport (GWh)
84
79
76
80
48
70
41
62
58
55
40
20
2013
113
120
60
2012
38
30
45
37
20
26
31
28
2012
2013
0
2005
2006
2007
2008
2009
Import (€/MWh)
2010
2011
Eksport (€/MWh)
8
KEK GENERATION AND MINING INVESTMENTS
100.0
90.0
80.0
88.8
75.9
68.2
70.0
63.2
60.0
49.3
50.0
40.0
46.6
30.5
25.3
30.0
21.0
20.0
10.0
0.0
2012
2013
CAPEX ALLOWED €m
2014
2015
2016
CAPEX REALIZED €m
*There are almost € 300 million CAPEX Allowed for KEK Generation and Mining
9
KOSTT INVESTMENTS
40.0
33.7
35.0
34.1
30.1
31.2
30.0
26.9
25.0
20.5
20.0
15.0
15.5
14.0
12.8
10.0
5.0
0.0
2012
2013
2014
CAPEX ALLOWED €m
2015
2016
CAPEX REALIZED €m
*There are €137 million CAPEX allowed for KOSTT
*The highest value of investment is realized in 2015 due to Interconnection Line with Albania
10
DSO/KEDS INVESTMENTS
25.0
21.6
21.4
21.2
21.6
20.0
18.0
16.0
15.0
16.0
18.0
16.5
10.0
2012
2013
CAPEX ALLOWED €m
2014
2015
2016
CAPEX REALIZED €m
*There are more than €100 million CAPEX allowed for DSO
11
DISTRIBUTION LOSSES
60%
54%
48.36%
48.10%
48%
42.81%
42.81%
41.22%
38.13%
42%
36%
36.69%
33.07%
35.54%
33.50%
31.82%
30.33%
30%
28.34%
26.33%
24%
16.38%
18%
15.45%
12%
6%
0%
2006
2007
Technical losses
2008
2009
Comercial losses
2010
2011
Total losses
2012
2013
2014
2015
Allowed losses
12
MARKET DEVELOPMENT
pre-2005
Vertical
integration
2005
TSO/MO
unbundling
2013
DSO/PS
unbundling
2014
DSO/PS
unbundling
Further
unbundling
KEK
Mine
KEK
Mine
KEK
Mine
KEK
Mine
KEK
Mine
Kosovo
A
Kosovo
A
Kosovo
A
Kosovo
A
Kosovo
A
Kosovo
B
Kosovo
B
Kosovo
B
Kosovo
B
Kosovo
B
TSO/MO
DSO
DSO
DSO
DSO
Current
strategy
Increased
capacity
Decommission align with NKPP
Rehabilitation
Legend
State
ownership
DSO
Supply
Supply
Supply
Supply
Supply
TSO/MO
TSO/MO
TSO/MO
TSO/MO
Private
ownership
PP Kosovo B
GENERATION
THE FUTURE OF ENERGY SECTOR
Transmission
Distribution
New Kosovo PP
Supply
Supplier A
Supplier B
Supplier C
Renewable energy sources
Supplier X
Decommissioning of PP Kosovo A
SUMMARY AND FUTURE STEPS
Regulation
• The multi-year tariff system improved the predictability of the energy sector
regulatory framework which facilitated investment in the energy sector
• Additional investments have led to significant improvements in security of
supply, reduction of losses, elimination of bottlenecks
Market orientation
and deregulation
o Remove structural barriers to market opening
• ERO with the support of USAID through Repower project, is currently
undertaking a Cost of Service Study which will identify the extent of
cross-subsidization between customer categories;
• Cross-subsidies to be eliminated
o Road-map for market opening to identify necessary steps currently being
developed;
o Market concentration and low number of suppliers is a challenge
Thank you!
Energy Regulatory Office
Rr. Dervish Rozhaja Nr. 12 Prishtinë,
Kosovë 10000
(Tel) + 381 (38) 247 615
[email protected]
www.ero-ks.org