Slovak electro-energy companies require changes in legislation
CASE: Slovak electro-energy
companies require changes
in legislation
Companies from the electro-energy sector in Slovakia would welcome few changes within the process of implementing the 3rd liberalisation package, including a 4-years regulatory period. The common position was presented by Štefan Badík from the company Stredoslovenská energetika at the SPX conference.
The third liberalisation package caused a need for a complex amendment of the energy legislative in Slovakia so that it would strengthen competition on the market with electricity and natural gas and also to reach the goals in the field of renewable energy use in order to achieve the climate targets and at the same time strengthen the position of customers. Therefore both the Law on Energy and Law on RES and VKVET will be subjects to a complex amendment under the heading of the Ministry of Economy and Construction SR, stated Jaroslav Hrušč from the company Východoslovenská distribučná on Thursday at the conference.
Common position of 5 companies
With this regard five companies that operate in the field of electro-energy (EPS, Slovenské elektrárne, ZSE, SSE and VSE) joined their forces, and in collaboration with the Ministry of Economy and Construction (Steering committee) and the Regulatory Office for Network Industries as the observer presented consolidated common stances on the 3rd liberalisation package.
The consensual approach of the 5 companies is only one of the documents which the MEC SR will take into consideration when implementing the 3rd liberalisation package, said Štefan Badík from the section „Regulation, strategy and development of trading” from the company Stredoslovenská energetika.
Independent regulator and 4-years regulatory period
It is open up for a discussion whether currently there exists an independent regulator, said Badík. According to him, companies that operate in Slovakia are demanding from the Ministry of Economy not to interfere in the price setting process. According to the current legislative, before giving a green light to the price proposal on the grounds of URSO, the Ministry of Economy has to give its formal agreement on it beforehand.
The minimum time one regulatory period should last for should be extended to four years. The rights of the regulator should be precisely stated and regulations should only be carried out in fields which are defined by the law. There also should exist a possibility of introducing a extra price regulation, which would be determined by the current updates in the Regulatory policy.
Changing the supplier up till 21 days
By implementing the 3rd liberalisation package, the rights of consumers should be also broadened, mainly the period for changing the energy supplier, specifically to 21 days.
The biggest companies in Slovakia also require changing the term „supplier of last instance”. Currently this can be only the traditional regional traders ZSE, SSE and VSE. It would be useful if also other companies could be this supplier according to their position in a smaller region.
What about smart meters?
If we are talking about installing intelligent or smart meters, this initiative should be nowadays implemented only in case of a specific group of customers. These would have to be determined by a study which would be carried out under the MEC SR until the end of 2012 according to the companies. Regulator USRO should then set specific tariffs for these customers that would take into consideration the costs related to the installation of smart-metering, explained Badík.
Distribution companies would not have buy in all electricity from RES
Among the other common stances of the five companies, the one which is important besides other is also the requirement that from 1st January 2013 electricity produced from renewable energy sources would not have to be bought by distribution companies in the full volume, but on the basis of a market principle. In this case distribution companies would not have to buy more of this electricity than they really need in order to cover the loses in their own system.
Concerning unbundling, the five companies prefer the model ITO or Ownership unbundling, concluded Badík.
Week in Slovakia
Monday – 13th December 2010
State subsidies for installing solar collectors and biomass boilers are still available and can allocate 4, 3 million euro for those who apply, informed the Slovak Innovation and Energy Agency (SIEA). The state has allocated 8 million euro. Until the end of November 2010, 3.913 households and 23 housing estates applied for the state grant.
Approximately one third of Slovak households are planning to use energy from renewable energy sources according to a survey carried out by SIEA. The most favorite are solar collectors, biomass boilers, but also heat pumps.
Tuesday – 14th December 2010
Bratislava district court has suspended without date the case on refunding the bills of exchange that were signed by the ex-managing director of SPP Ján Ducký. The bills were worth 400 million Czech crowns. Currently the Czech company Draft-ova Opava is demanding the money from the Slovenský plynárenský priemysel (SPP –Slovak gas industry).
Wednesday – 15th December 2010
Members of the Slovak National Council (NRSR) have approved the law amendment on support for renewable energy sources (RES). The law focuses mainly on photovoltaic. State subsidies will be only granted to those installations with a total installed capacity less than 100 kW.
Thursday – 16th December 2010
Representatives from SPP and eustream, a.s. have assured Slovak citizens that Slovakia will not be threatened by a gas crisis during winter time. As they further stated, Slovakia is fully prepared in case of insufficient gas supplies. We can now import gas by reverse flow from Czech Republic and Austria. In 2009 SPP has also signed diversification agreements with E.On Rughrgas and Gaz de France and also capacities of the natural gas reserves were increased informed Achim Saul (SPP).
Price of electricity could increase by 6 – 7 % in 2011 according to an estimation of the company Východoslovenská distribučná. The rise in price should be cause by TPS (system operation tariff), which is paid by the consumer in the end price. The final price for households has to be set by ÚRSO based on the ongoing price negotiations, stated Jaroslav Hrušč at the SPX conference in Žilina.
Friday – 17th December 2010
Pipeline between Slovakia and Hungary is again one step closer to being built, thinks Antoine Jourdaine from company Eurstream. We should know the results of the second round of the binding phase of Open Season at the end of this year. As he further states, representatives from Eustream have held talks with highest representatives from both countries and they have expressed their political support.
There are currently 32 active business subjects on the Slovak market with electricity. From those 29 are active, which means that during their presence on the market they have signed at least one valid contract. The information was provided by Pavel Šramko (OKTE) at the SPX energy conference in Žilina.
Companies from the Slovak electricity market (SEPS, Slovenské elektrárne, ZSE, SSE a VSE) would welcome a number of legislative changes related to the third liberalization package. One of them is a 4 year lasting regulatory period or extending the rights of consumers, mainly shortening the period for changing an energy supplier to 21 days.
European Union and World
Monday – 13th December 2010
Photovoltaic power plants in Czech Republic can not connect to the grid even at the beginning of 2011. The reason is a permanent high number of requests for connecting solar sources, explained the operator of the Czech transmission system ČEPS. The situation might be evaluated at the beginning of next year.
Czech energy company ČEZ is preparing a reconstruction of hydro power plants on the area of Czech Republic. The aim is to increase the installed capacity of the hydro sources by 60.000 MWh during the upcoming 12 years. Modernization should help Prague to fulfill their obligations towards EU in electricity production from renewable energy sources.
Tuesday – 14th December 2010
Interest in using bio-gas is increasing in Czech Republic. Currently the highest interest is in Southern parts of Czech Republic. Currently there are 138 bio-gas stations with a total installed capacity of 77 MW. The limiting factor is that these sources can not be connected to the public distribution network, due to the unregulated expansion of photovoltaic sources.
British government will support development of electro-mobiles. British citizens who are interested in ecological driving will have to pay one fourth less for a electro-vehicle. The state subsidies should be enough to fund 60.000 cars.
Russian Gazprom plans to increase its natural gas production by 12 % until 2015. Production would then reach 570 to 580 billion cubic meters. The production levels would then return to the levels of 1993.
Wednesday – 15th December 2010
Relevancy of Austria in the field of anti-nuclear politics is sharply falling according to Austrian activist from the organization Antiatom Szene and Resistance for Peace. As main reasons of this fact they state the Czech nuclear power plant Temelín, Slovak Mohovce or expanding the life span of energy from nuclear power plants in Germany. They also accused the top political representatives in Austria that they are connected with the nuclear lobby.
Thursday – 16th December 2010
Czech president Václav Klaus has signed the law amendment on renewable energy support despite his reservations. The aim of the approved legislation is to restrict rise in electricity prices due to the unregulated expansion of photovoltaic. In 2011 electricity in Czech Republic will cost 4, 6 % more for households and 5, 2 % more for business subjects.
The Netherlands are planning to develop the natural gas sector. A financial stimulus of nearly 2 million euro should secure the country more than 13.000 jobs in the upcoming 10 years.
Ghana has started to extract oil in the Gulf of Guinea. The production capacity of the oil field „Jubilee” should reach 120.000 barrels per day. Shana should then become the seventh largest producer of this commodity in Africa.
Friday – 17th December 2010
Czech company ČEZ has to count with smaller net profits in 2011 due to the law amendment on RES support. According to estimations its incomes should fall by approximately 4, 6 billion Czech crowns.
Further development of unconventional gas extraction in USA has increased natural gas reserves in the country by 75 %. Currently the reserves of this commodity are estimated at 23, 4 trillion cubic meters. Until 2035 the production should double in USA according to the Energy Information Agency (EIA).
Russian oil giant Rosneft wants to start natural gas extraction in Siberia at the beginning of 2012. The company is interested in exporting gas to China, although it could result in a clash of interests with the monopoly position of Gazprom.
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