Needed Reforms in Electricity Andreas Pointvogl Energy Community
- Slides: 7
Needed Reforms in Electricity Andreas Pointvogl, Energy Community Secretariat High-Level Forum on Security of Supply in Kosovo Prishtina, 1 March 2016 Energy Community Secretariat High-Level Energy Community Forum on Secretariat Security of Supply in Kosovo
The Kosovan Challenge in Electricity The only way forward for Kosovo to reach secure, sustainable and fair electricity is: • To provide a national level-playing field • To form part of the regional market - In terms of adequacy - Showcase ability to cooperate - Attract investment - Allow market forces to unfold (liquidity) • To stronger commit to Western Balkan 6 process Energy Community Secretariat High-Level Energy Community Forum on Secretariat Security of Supply in Kosovo 2
Current Performance of Kosovo in WB 6 Process Energy Community Secretariat 3
No Good Security of Supply without Good Governance National reforms are necessary and sufficient condition for closer integration in all dimensions • Ensure compliance with the Energy Community acquis by adopting and implementing a Third Energy Package compliant set of laws - Provide legal certainty for cooperation partners, investors, operators - Institutional independence • Cleaning up of neighbouring laws • Timely developing of complementary acts • Phasing out of distorting forms of price regulation, cross-subsidisation, or other non-transparent price formation Energy Community Secretariat High-Level Forum on Security of Supply in Kosovo 4
Security of Supply as Individual Player in the Region Energy security and sustainability is a result of a functioning sector • For Kosovo, the only option to reach a sufficient level of supply security is the integration into regional and European markets - Regional Balancing markets cushioning the lack of balancing reserves - Regional adequacy assessments are more important for Kosovo than for many other European countries - Pan-European market coupling to bring in the needed liquidity to allow for a competitive price formation in the most important market segment • Key message: first necessity is to make Kosovo‘s institutions and rules fit for further integration in all forms: day-ahead market coupling, closer balancing cooperation, or closer regulatory cooperation Energy Community Secretariat High-Level Energy Community Forum on Secretariat Security of Supply in Kosovo 5
Key to Success is to first Resolve Open Issues at Home • Open Issues on the way to foster Security of Supply - Issue licenses to all suppliers whose applications are pending - Eliminate all forms of inefficient price formation • Phase out regulation of generation & end user prices, crosssubsidies • Establish tariff systems allowing for a fair cost recovery for entities providing public services - Require KOSTT to develop a fair balancing regime - Promote transparency in all market segments - Start discussions of declaring groups of vulnerable customers and support schemes to substitute price regulation - Adopt all decision needed to set the ground for TSO unbundling Arben Llapashtica Energy Community Secretariat High-Level Energy Community Forum on Secretariat Security of Supply in Kosovo 6
Thank you for your attention! www. energy-community. org Energy Community Secretariat High-Level Energy Community Forum on Secretariat Security of Supply in Kosovo 7
