ERO presentation

General information about

the Regulator

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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 authorityof the state administration

• Authority responsible for regulation in energy sectoras well as promotion of competition

• Executive body, without legislative initiative

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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 undertakingsand consumers

Sourcescompetences derive fromEnergy law and secondary legislationEROemployees (civil servants)budget

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SUSTAINABLE DEVELOPMENT

COMPETITION

SUSTAINABLE USEOF THE ENVIRONMENT

ENERGY SECURITY

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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,

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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.

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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 encouragingeconomic and rational use of fuels and energy.

The President of ERO regulates the activities of energy enterprises in accordance with the nationalenergy policy, in order to balance the interests ofall of the energy market actors, i.e. end usersand energy enterprises.y


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Organisational structure

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

Officeof the Director

GeneralInternational Cooperation

Unit

Position for the Protection of Classified Information Internal Audit

8 Branch Offices in: Szczecin, Gdansk, Poznan, Lublin, Lodz, Wroclaw, Katowice, Cracow

Vice-President

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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

The competences of BOs are peformed on local level.

BOs duties include: licencing, tariffs approval, control,dispute settlement, imposing fines.

BO Szczecin

BO Gdańsk

BO Lublin

BO Poznań

BO Łódź

BO Wrocław

BO Kraków

BO Katowice

Organisational structure

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The President

of ERO

ELECTRICITY

GASEOUS FUELS

HEAT

Duties of the President of ERO

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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 changingas 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.


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Promotion of competition

is a priority for the President of ERO manifesting itself in the current

evaluation of the influence of adopted decisionson the development of competition on the energy market

and optimal decision-making from this point of view.


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Among main activities of the regulator leading towards eliminatingthe 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).


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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 providerby the authorized consumers.

The results of the monitoring show that in Poland mostlythe industrial and institutional consumers benefit from

TPA rule.


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Approving the tariffs for transmissionand 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.


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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.


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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

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 levelof reliability and quality of network services.


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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 obligationstowards energy enterprises.

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ERO leads informational and educational campaigns using new technologies

and tools such as: internet, TV, radio, billboards and press.

A guidebook website - www.maszwybor.ure.gov.pl - prepared by ERO in the social campaign promoting the right

to change the energy supplier is one of the examples..

Informational and Educational Policy

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The Department of Legal Issues and Dispute Settlement is a departmentof 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 actsthat refer to the competences of the President of ERO,

• cooperating with other government bodies, representing the Republic of Polandin legal proceedings before the Court of Justice of the European Union,

• resolving disputes between the electricty and gas markets’ players - under Article 8of the Energy Law Act (however only with regard to connection of the renewable energy sources to the electricity or gas network).

Legal Issues and Dispute Settlement

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The Energy Law Act ensures connection to the grid (public law obligation)

Energy enterprise whose activity consists in the transmission or distributionof 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 gridand 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.

Division of dispute resolution - duties

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The President of ERO shall determine whether:

• the energy enterprise is obliged to conclude a grid connection agreementwith 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 gridand 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 connectedto the grid and taking supply.

Division of dispute resolution - duties

Thank you for your attention

Warsaw 2014

Date post:	20-Jun-2015
Category:	Government & Nonprofit
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ERO presentation

Government & Nonprofit