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Dispute Settlement Practice and Complaint Handling Procedures in ERRA Countries

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Dispute Settlement Practice and Complaint Handling Procedures in ERRA Countries cgvdfagaf Dispute Settlement Practice and Complaint Handling Procedures in ERRA Countries Dispute Settlement Practice and Complaint Handling Procedures in ERRA Countries Benchmark Analysis Prepared by: Elza Bergmane PUC, Latvia Dilek Civak Erdas EMRA, Turkey July, 2016 May, 2016 BENCHMARK ANALYSIS: Dispute Settlement Practice and Complaint Handling Procedures in ERRA Countries Energy Regulators Regional Association II. Jánost Pál pápa tér 7., 1081 Budapest Tel.: +36 1 477 0456 ǀ Fax: +36 1 477 0455 E-mail: [email protected] ǀ Web: www.erranet.org BENCHMARK ANALYSIS: Dispute Settlement Practice and Complaint Handling Procedures in ERRA Countries Prepared by: Elza Bergmane Member of the ERRA Customers and Retail Markets Working Group; Senior Lawyer, Energy Division of Legal Department; Public Utilities Commission (PUC) of Latvia and Dilek Civak Erdas Member of the ERRA Customers and Retail Markets Working Group; Energy Expert, Energy Market Regulatory Authority (EMRA) of Turkey July, 2016 The Analysis was prepared based on information collected from ERRA Customers and Retail Markets Working Group Members in the period of June 2014 – June 2016. The following ERRA Members submitted their answers: Public Services Regulatory Commission, Armenia Regulatory Commission for Energy in Federation of Bosnia and Herzegovina (FERK) Regulatory Commission for Energy of Republika Srpska (RERS), Bosnia and Herzegovina Estonian Competition Authority Georgian National Energy and Water Supply Regulatory Commission Hungarian Energy and Public Utility Regulatory Authority Public Utilities Commission, Latvia National Commission for Energy Control and Prices, Lithuania Energy Regulatory Commission, Macedonia Nigerian Electricity Regulatory Commission National Electric Power Regulatory Authority, Pakistan Romanian Energy Regulatory Authority Federal Antimonopoly Service, Russia Federation Electricity and Co-Generation Regulatory Authority, Saudi Arabia Regulatory Office for Network Industries, Slovakia Energy Market Regulatory Authority, Turkey The Energy Regulators Regional Association assumes no responsibility for the use that may be made of the information contained in this publication or any errors that may remain in the texts, despite the care taken in preparing them. All views, positions, and conclusions expressed in this publication are those of the authors and do not necessarily reflect the views of ERRA and its members. This text may be used only for personal research purposes. Any additional reproduction for any other purposes, whether in hard copies or electronically, requires the consent of ERRA. If cited or quoted, reference should be made to the full name of the author, the title, the year and the publisher. 1 © ERRA 2016 BENCHMARK ANALYSIS: Dispute Settlement Practice and Complaint Handling Procedures in ERRA Countries Introduction: In the first ERRA Customers and Retail Markets Working Group Workplan there were included two separate topics: 1) Benchmark Analysis of Complaint Handling Procedures of ERRA Members; 2) Dispute Settlement Practice in ERRA Countries. Sequentially two separate questionnaires were prepared and sent to the ERRA Customers and Retail Markets Working Group members (hereafter – ERRA members). After receiving the answers, it was concluded that both topics overlap and are interrelated. Therefore, it was decided to combine both topics in one benchmark analysis and to prepare a new questionnaire. Complete or partial answers were received from most of the ERRA members. The benchmark analysis aims to provide information on different understandings of dispute settlement and complaint handling procedures in ERRA countries, to compare the competencies of the national regulatory authority and other authorities regarding dispute settlement and complaint handling. Abbreviations: ADR – alternative dispute resolution CCHP – customer complaint handling procedure DSP – dispute settlement procedure NRA – national regulatory authority Summary of the key findings: 1. The understanding of dispute settlement and complaint handling differs from country to country. Not in all ERRA countries (countries for which information has been provided) dispute settlement and complaint handling are defined as two separate administrative procedures. In some countries, the dispute settlement procedure is more formal than complaint handling procedure; it is similar to the process in the court and results in a decision of the NRA. Whereas in some countries regarding dispute settlement NRA has only a role of mediator, but the complaint settlement procedure results in a decision of the NRA. Therefore, it is important to take into account the answers of the ERRA members to the question about the understanding of both procedures when looking at answers to other questions. 2. Neither dispute settlement nor complaint handling has a legal definition; both procedures generally are prescribed in laws, secondary legislation or contracts. The scope of complaint handling concept is usually wider than the scope of dispute settlement concept. 3. In most of the ERRA countries beside of NRA there are some other authorities that are responsible for customer protection, including customer complaint handling, however the breakdown of responsibilities among NRA and other related authorities is clear. 2 © ERRA 2016 BENCHMARK ANALYSIS: Dispute Settlement Practice and Complaint Handling Procedures in ERRA Countries 4. In one part of the ERRA countries the DSP and the CCHP provided by the NRA is mandatory. It means that parties can apply to the court only if the NRA has already examined the dispute or complaint. In other part of the countries the DSP and the CCHP provided by the NRA is voluntary. Thereby parties can apply straight to the court. 5. In energy sector NRAs deal with different types of disputes and complaints. The most common issues are connection to the grid, conditions of the connection to the grid, conditions of supply of energy, tariffs and prices, bills, quality of energy and supply. 6. In all the ERRA countries NRAs take decision regarding the matter of examination of disputes and this decision usually is binding upon the parties involved. Similar situation is regarding examination of customer complaints with one exemption - in Latvia NRA usually delivers a reasoned reply in writing, not a decision. In most of the ERRA countries NRA are empowered to impose penalties for failure to comply with the decision. 7. In most of the ERRA countries, the decision of the NRA regarding the disputes and the complaint may be appealed to a court. In such cases, NRAs usually have a role of the defendant. Answers of the ERRA members to the questions: 1. The understanding of procedures 1.1. What is the definition (understanding) of DSP according to the national legislation? 1.2. What is the definition (understanding) of CCHP according to the national legislation? 1.3. Please explain the difference between both procedures, if any. Armenia DSP: There is no special definition for DSP. By law of Energy, disagreements arising between the Licensees shall be resolved through negotiations. Either party may apply to the NRA, within its jurisdiction to resolve the dispute.This article does not limit the right of parties to resolve disputes in court. CCHP: There is no special definition for CCHP. CCHP-s are regulated by the law on "Fundamentals of administration and administrative proceedings”. On 1st of July 2015, the Commission adopted Decision (N219L) on the submission and consideration of complaints submitted to Public Services Regulatory Commission of RA. Difference between both procedures: There are no differentiation between these two concepts. Bosnia and Herzegovina (FERK) DSP: According to the FERK’s Rule Book about Public Hearings and Settlement of Requests, Disputes and Complaints, FERK is settling disputes at the request of the party regarding the right for the electricity supply, the obligation of electricity supply, tariffs/prices which the electricity is 3 © ERRA 2016 BENCHMARK ANALYSIS: Dispute Settlement Practice and Complaint Handling Procedures in ERRA Countries supplied at, delay or refusal to supply electricity and quality of the electricity supply. It is a form of mediation procedure. Indemnification of possible damage shall not be considered. CCHP: According to the Law on Electricity in Federation of Bosnia and Herzegovina FERK is authorised to resolve the complaint to the decision of DSO in the second-instance about refusal to access to the distribution network to the third party and conditions of access to the distribution network. Difference between both procedures: In dispute settlement procedure, FERK has a role of body, which originates parties to achieve a compromise, in contrary FERK recommends them to start court procedure. In customer complaint handling procedure, FERK resolves by final act as second- instance body. Bosnia and Herzegovina (RERS) DSP: RERS is in charge, at the request of the party, to settle the disputes at the electric power market regarding: a) the right for the electricity supply, b) the right of access to the distribution network, c) obligation of delivery of electricity, d) tariffs which the electricity is delivered at, e) interruptions in the electricity supply, f) refusal to deliver the electricity, g) quality of the electricity supply. CCHP: Definition is prescribed by national legislation. The RERS is competent to solve the complaint to the decision of distributor in the second‐instance about: a) refusal
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