Annual Report 2020
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ANNUAL REPORT ENERGY AND WATER SERVICES REGULATORY COMMISSION OF THE REPUBLIC OF NORTH MACEDONIA 2020 Energy and Water Services Regulatory Commission of the Republic of North Macedonia (ERC) Annual Report The Annual Report on operations of the ERC for 2020, prepared in accordance with Article 36 of the Law on Energy* (“Official Gazette of the Republic of Macedonia” no. 96/2018 and '’Official Gazette of the Republic of North Macedonia'’ no. 96 / 2019), is submitted to the Assembly of the Republic of North Macedonia, on April 30th, 2021. Annual Report on operations of the ERC in 2020 - 1 - Glossary of Macedonian legal (business) entities’ acronyms: AD – Joint Stock Company DOOEL – Limited Liability Company (Sole Proprietorship) DOO- Limited Liability Company HEC – Hydro Power Plants FEC – Photovoltaic Power Plants TEC – Thermal Power Plants VEC – Wind Power Plant REK – Mining and Energy Combine JPV- Public Water Enterprise JP – Public Enterprise JPHS – Hydro System Public Enterprise JKP – Public Municipal Enterprise KJP – Municipal Public Enterprise MJP – Intermunicipal Public Enterprise JKPD – Public Enterprise of Municipal Activities OJP – Municipal Public Enterprise DU – Service Company DKU- Municipal Service Company Annual Report on operations of the ERC in 2020 - 2 - Terms of use The data published in the 2020 Annual Report are acquired by the MM-Central Information System for monitoring energy markets functioning, as well from other reports submitted to the Energy and Water Services Regulatory Commission of the Republic of North Macedonia. The data presented in this Report may be freely used by any interested party with full source citation: Annual Report on operations of the Energy and Water Services Regulatory Commission of the Republic of North Macedonia for 2020 © ERC 2021 Annual Report on operations of the ERC in 2020 - 3 - T A B L E O F C O N T E N T S R E S U M E 13 I. I N S T I T U T I O N A L D E V E L O P M E N T 18 1.1 ORGANIZATION 18 1.2 ORGANOGRAM OF THE ENERGY REGULATORY COMMISSION 20 1.3 HUMAN RESOURCES 21 1.4 IT-RESOURCES 21 1.5 QUALITY SYSTEM MANAGEMENT 25 II. E L E C T R I C I T Y 28 2.1 BALANCE OF ELECTRICITY DEMAND AND SUPPLY 28 2.2 ELECTRICITY PRODUCTION 30 2.3 RENEWABLE ENERGY SOURCES 33 2.3.1 MEASURES TO SUPPORT RENEWABLE ENERGY SOURCES 35 2.3.1.1 PREFERENTIAL TARIFF 35 2.4 ELECTRICITY CONSUMPTION 45 2.5 ELECTRICITY IMPORT AND EXPORT 45 2.6 GRID SERVICES 47 2.6.2 ELECTRICITY DISTRIBUTION 48 2.6.3 ELECTRICITY TRANSMISSION SYSTEM 49 2.6.3.2 DEVELOPMENT AND INVESTMENT PLAN 50 2.6.3.3 ELECTRICITY TRANSMISSION SYSTEM LOSSES 51 2.6.4 ELECTRICITY DISTRIBUTION SYSTEM 53 2.6.4.2 DEVELOPMENT AND INVESTMENT PLAN 55 2.6.4.3 ELECTRICITY DISTRIBUTION SYSTEM LOSSES 56 2.6.4.4 CHANGE OF CONNECTIONS CATEGORY 58 2.6.5 QUALITY OF ELECTRICITY SUPPLY 58 2.6.6 NETWORK SERVICE CHARGES 61 2.7 ELECTRICITY MARKET 65 2.7.1 ELECTRICITY MARKET OPERATOR 66 2.7.3 WHOLESALE MARKET 68 2.7.3.1 MARKET ON BILATERAL AGREEMENT 68 2.7.3.2 DOMESTIC PRODUCERS 69 2.7.3.3 ТRADERS AND SUPPLIERS 70 2.7.3.4 BALANCE ENERGY MARKET 73 2.7.3.5 ORGANIZED ELECTRICITY MARKET 77 2.7.4 ELECTRICITY CONSUMPTION STRUCTURE 77 2.7.5 RETAIL MARKET 79 Annual Report on operations of the ERC in 2020 - 4 - 2.7.5.1 LIBERALIZED MARKET 79 SWITCHING SUPPLIER 80 SUPPLY OF END CONSUMERS 80 CONSUMERS SUPPLY 82 PRICE COMPARISON TOOL SWITCH.MK 83 2.7.5.2 REGULATED MARKET 83 ELECTRICITY PRICE STRUCTURE 88 III. N A T U R A L G A S 91 3.1 NETWORK SERVICES 93 3.1.1 NATURAL GAS TRANSMISSION SYSTEM 93 3.1.1.1 DEVELOPMENT AND INVESTMENT PLANS 97 3.1.1.2 NATURAL GAS TRANSMISSION TARIFF 98 3.1.2 NATURAL GAS DISTRUBUTION SYSTEMS 99 3.1.2.1 DISTRUBUTION SYSTEM DEVELOPMENT PLANS 102 3.1.2.2 NATURAL GAS DISTRUBUTION TARIFFS 103 3.2 WHOLESALE MARKET 104 3.2.1 AVERAGE MONTHLY SALE PRICES IN 2020 106 3.3 RETAIL MARKET 107 3.3.1 AVERAGE MONTHLY SALE PRICES IN 2020 108 IV. DISTRICT HEATING 112 4.1 DISTRICT HEATING PRODUCTION 114 4.2 DISTRICT HEATING DISTRIBUTION 117 4.3 DISTRICT HEATING SUPPLY 118 4.3.1 DISTRICT HEATING PRICES 120 4.4 DEVELOPMENT AND INVESTMENT PLANS IN THE SYSTEMS OF DISTRICT HEATING 122 4.4.1 DISTRICT HEATING PRODUCTION BE DOOEL SKOPJE 122 4.4.2 DISTRICT HEATING DISTRIBUTION BE DOOEL SKOPJE 123 4.4.4 SKOPJE SEVER AD SKOPJE 124 V. O I L D E R I V A T I V E S 126 5.1 OIL SECTOR GENERAL DATA 127 5.1.1 CRUDE OIL PROCESSING AND OIL DERIVATIVES PRODUCTION 127 5.1.2 TANSPORTATION OF CRUDE OIL THROUGH OIL PIPELINE 128 5.1.3 BIOFUELS PRODUCTION 128 5.1.4 RETAIL NETWORK 129 5.1.5 STORAGE CAPACITIES 129 5.2 OIL AND OIL DERIVATIVES MARKET STATUS 129 5.2.1 MARKET PARTICIPANTS 129 Annual Report on operations of the ERC in 2020 - 5 - 5.2.2 PRODUCTION, PURCHASE AND SALE OF OIL DERIVATIVES 132 5.3 APPROVED PRICES ON CERTAIN OIL DERIVATIVES 139 V I . M A R K E T C O N C E N T R A T I O N 152 V I I . W A T E R S E R V I C E S 155 7.1 WATER SERVICES GENERAL DATA 156 7.2 SUPPLY WITH RAW WATER ENVISAGED FOR WATER SUPPLYING OF THE POPULATION 157 7.2.1 GENERAL DATA 157 7.2.2 RAW WATER SUPPLY TARIFFS 157 7.2.3 DECISIONS FOR TARIFF DETERMINATION FOR RAW WATER ENVISAGED FOR WATER SUPPLYING OF THE POPULATION FOR SECOND REGULATED PERIOD 2021-2023 158 7.3 SUPPLY WITH DRINKING / POTABLE WATER OR WATER SUPPLYING 159 7.3.1 GENERAL DATA 159 7.3.2 NON - REVENUE WATER IN 2020 160 VARDAR REGION 160 EAST REGION 161 SOUTH-WEST REGION 161 SOUTH-EAST REGION 162 PELAGONIJA REGION 162 POLOG REGION 163 NORTH-EAST REGION 163 SKOPJE REGION 164 7.3.4 TARIFFS FOR DRINKING WATER SUPPLY OR WATER SUPPLY TO AREAS WITH OVER 10.000 (EQUIVALENT) RESIDENTS 164 7.3.5 DECISIONS FOR TARIFF DETERMINATION FOR WATER SUPPLY FOR SECOND REGULATED PERIOD 2021-2023 169 7.3.6 TARIFFS FOR DRINKING WATER SUPPLY OR WATER SUPPLY TO AREAS WITH UNDER 10.000 (EQUIVALENT) RESIDENTS 170 7.4 COLLECTION AND DISCHARGE (DISPOSAL) OF URBAN WASTEWATERS 175 7.4.1 GENERAL DATA 175 7.4.2 TARIFFS FOR COLLECTION AND DISCHARGE (DISPOSAL) OF URBAN WASTEWATERS IN AREAS WITH OVER 10.000 (EQUIVALENT) RESIDENTS 175 7.4.3 DECISIONS FOR TARIFF DETERMINATION FOR COLLECTION AND DISCHARGE (DISPOSAL) OF URBAN WASTEWATERS FOR SECOND REGULATED PERIOD 2021-2023 179 7.4.4 TARIFFS FOR COLLECTION AND DISCHARGE (DISPOSAL) OF URBAN WASTEWATERS IN AREAS WITH UNDER 10.000 (EQUIVALENT) RESIDENTS 180 7.5 WASTEWATERS PURIFICATION (WASTEWATER TREATMENT) 185 7.5.1 GENERAL DATA 185 7.5.2 TARIFFS FOR WASTEWATERS PURIFICATION (WASTEWATER TREATMENT) IN AREAS WITH OVER 10.000 (EQUIVALENT) RESIDENTS 185 Annual Report on operations of the ERC in 2020 - 6 - 7.5.3 DECISIONS FOR TARIFF DETERMINATION FOR WASTEWATERS PURIFICATION (WASTEWATER TREATMENT) FOR SECOND REGULATED PERIOD 2021-2023 187 7.5.4 TARIFFS FOR WASTEWATERS PURIFICATION (WASTEWATER TREATMENT) IN AREAS WITH UNDER 10.000 (EQUIVALENT) RESIDENTS 188 V I I I . L E G A L A F F A I R S 192 8.1 LEGAL ACTS 192 8.1.1 GENERAL ACTS 193 8.1.2 ACTS IN THE FIELD OF ELECTRICITY 195 8.1.3 ACTS IN THE FIELD OF NATURAL GAS 197 8.1.4 ACTS IN THE FIELD OF DISTRICT HEATING 198 8.1.5 ACTS IN THE FIELD OF OIL DERIVATIVES 199 8.2 LICENSES 200 8.2.1 LICENSES IN THE FIELD OF ELECTRICITY 200 8.2.2 LICENSES IN THE FIELD OF NATURAL GAS 201 8.2.3 LICENSES IN THE FIELD OF DISTRICT HEATING 202 8.2.4 LICENSES IN THE FIELD OF OIL DERIVATIVES 202 8.2.5 LICENSES IN OTHER FIELDS 203 8.3 CONSUMER PROTECTION 203 8.3.1 COMPLAINTS TO DISTRICT HEATING SUPPLIERS 205 8.3.2 COMPLAINTS TO ELECTRICITY SUPPLIERS 206 8.3.3 CONNECTION TO AND DISCONNECTION FROM THE ELECTRICITY DISTRIBUTION SYSTEM 208 8.3.4 DISPUTES AND COMPLAINTS 209 8.3.5 APPLICATIONS (COMPLAINTS) 210 8.3.6 CONSUMER’S REMINDER 211 8.4 COURT PROCEDURES 211 8.4.1 ADMINISTRATIVE DISPUTES 211 8.4.2 OTHER COURT PROCEDURES 212 8.5 INFORMATION OF PUBLIC INTEREST 212 8.6 IMPLEMENTATION OF THE LAW ON WISTLEBLOWERS PROTECTION 213 I X . I N T E R N A T I O N A L A C T I V I T I E S 215 9.1 ENERGY COMMUNITY REGULATORY BOARD (ECRB) 215 9.2 COUNCIL OF THE EUROPEAN ENERGY REGULATORS (CEER) 219 9.3 ENERGY REGULATORS REGIONAL ASSOCIATION (ERRA) 219 9.4 EUROPEAN WATER REGULATORS (WAREG) 221 9.5 EUROPEAN INTEGRATION 222 9.6 BALKAN ADVISORY FORUM (BAF) 223 9.7 IMPLEMENTATION OF PROJECTS AND PARTICIPATION IN OTHER EVENTS 223 X. FINANCIAL OPERATIONS (ACTIVITIES) 227 Annual Report on operations of the ERC in 2020 - 7 - 10.1 FINANCIAL RESULTS FROM THE OPERATIONS (ACTIVITIES) 227 10.1.1 REVENUES 228 10.1.2 EXPENDITURES 229 X I .