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.
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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
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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
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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
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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
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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
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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
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10.1 FINANCIAL RESULTS FROM THE OPERATIONS (ACTIVITIES) 227
10.1.1 REVENUES 228 10.1.2 EXPENDITURES 229
X I . A C T I V I T I E S I N 2 0 2 1 233
X I I . A P P E N D I X E S 236
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F O R E W O R D
Distinguished,
The 17th Annual Report of the Energy and Water Services Regulatory Commission of the Republic of North Macedonia is further disclosed to your attention. The Report shows the status of energy sectors (electricity, natural gas, district heating, oil, and oil derivatives), and the water services sector, in the period from January 1st to December 31st, 2020. In this period, because of Covid 19 pandemics, we have faced great challenges and suspense, we were obliged to reorganize and adapt fast, to undertake risks and make courageous decisions. It was necessary to act fast and pro-actively, to recognize and to avoid if possible or at least to minimize the effects of the pandemics. We faced the fact that the priority to save public health is main precondition for surviving in every aspect.
I am proud to declare that the Energy and Water Services Regulatory Commission during the pandemics has once again confirmed its role in balancing companies’ interests and consumer protection. we have changed the method of operation, organization, and communication, but we have not changed our goals.
In the first months of the pandemics, we have reduced the charge for the demands of energy companies and the water service providers. Taking into consideration all the fear and uncertainty that the consumers face, and meanwhile taking into account the stability of the energy sector and the water services sector, we have appealed to the energy companies not to disconnect the consumers from adequate electricity and district heating, as well as water supply systems, and to provide to consumers to pay their bills in installments and without interest during the state of emergency, and the pensioners and the ones employed with regular income shall regularly pay their energy and water bills. In this occasion, I would like to honor all interested parties for the synergy and solidarity that has provided to safety fuel supply systems and water supply systems.
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It has been more than a challenge to state that a decision for increasing electricity prices has been adopted, in a period when many companies cannot perform its main activities nor realize revenues, in a period when people are being fired from work, when they lose their close ones, regardless of how urgent or right the decision is. But the pandemics did not spare anyone, not even the companies of the electro energy sector, which have significantly reduced their revenues because of the reduced activity of the industry and that is why this price increase was inevitable.
During a very complicated energy year of unpredictable demand trends, reduced global consumption, bad hydrology - we did not step out of the responsibility to guarantee safe and stable electricity supply. We were able to continue applying the electricity off-peak tariff, even though it is a model that contradicts the demands of the Energy Community, i.e., it is a model that Europe has abandoned long time ago. But we strongly believe, which is proven by the data, that consumers use maximally the hourly interval of off-peak tariff and we consider it as a support for households.
As a regulatory body that is responsible for electricity price determination, we felt moral responsibility to protect the most vulnerable consumer categories. That is why we initiated the expansion of the category of vulnerable consumers, who shall receive financial support that shall cover part of their overhead costs. We need a model for protecting the most vulnerable citizen categories in this period when we wait for the decision of the call for the development of the natural gas distribution network, while the electricity price is an unpredictable product of stock exchange. We refer to a systematic solution which shall affect the citizens that need financial support, and the Energy Community has given us its full support in this direction. Now we are selecting people who shall join the group of vulnerable consumers. We are facing many challenges in this aspect, but we do not have excuses for failure, even though the process is quite complicated. We are not legislators, but as a regulatory authority, our initiatives shall have the intended importance and effect only when we implement the processes fully. Regarding the protection of the most vulnerable consumer categories, we expect a constructive contribution from all responsible institutions: the ministries, the Assembly, and the energy companies, because we must help our fellow-citizens who need help the most.
That is why we have established “covid reorganization” in ERC, which has fully respected the recommendations of health authorities, and meanwhile has provided full access to the commission for consumers, the licenses enterprises, state institutions and other interested parties.
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Last year was marked with the decisions that determined the lowest prices of oil derivatives from the existence of the Energy Regulatory Commission, because of the huge, unseen so far, stock exchange price drop. The world stopped moving because of Covid -19 pandemics, but it was difficult to stop the production from platforms, and that is why a part of the producers gave money to sell oil because their storages were over the limit. Some countries decided to increase their oil reserves to soften the shock.
While I am writing the introductory speech for the annual report, I am expecting positive news from the minister of health for vaccinating the employees of the energy sector and the public water supply enterprises that work in the field. These employees are put in the first line of direct work for defect repair and are the most vital part of the energy systems.
You shall read below in detail about the status and the changes in the electro energy sector, the district heating and natural gas sector, the oil derivatives sector, and the water services sector. The hard and committed work, the timeliness of problem solution of consumers and other participants in the energy sector and the water services sector, the adequate application of acts and by-laws, have once again resulted in recognition by the Energy Community. I am very proud for this award because it is a recognition for the ERC employees, for their quality and dedication that help in building the image and of ERC as a highly professional institution.
To the next year, stay healthy!
Take care!
Marko Bislimoski
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ENERGY AND WATER SERVICES REGULATORY COMMISSION OF THE REPUBLIC OF NORTH MACEDONIA
The Energy and Water Services Regulatory Commission of the Republic of North Macedonia (hereinafter: Energy Regulatory Commission) is a sole, non-profitable, regulatory body, regulating and controlling the manner on performing energy activities in the fields of electricity, natural gas, district heating, raw oil, oil derivatives and transportation fuels, and, in the establishment of the tariffs and prices on water services. The institution is independent in maintaining operations and decision-making processes within its competencies, and is in capacity of a legal entity, which is separated and functionally independent regarding organization and decision-making from the bodies of the state and local authorities, and the entities performing energy activities. The Energy Regulatory Commission, at least once a year, reports to the Assembly, the Government of the Republic of North Macedonia, the Ministry responsible for energy affairs, and to the Energy Community Secretariat. The competencies of the Energy Regulatory Commission are regulated by the Law on Energy* (“Official Gazette of the Republic of Macedonia” no. 96/18 and '’Official Gazette of the Republic of North Macedonia'’ no. 96 / 19), the Law on Water Services Prices (“Official Gazette of the Republic of Macedonia” no. 7/16), other by-laws, and the Statute and its Rulebook. The acts of the Energy Regulatory Commission are published in the Official Gazette of the Republic of North Macedonia” and on the web-page of the Energy Regulatory Commission https://www.erc.org.mk/default.aspx.
MEMBERS OF THE ERC
M.Sc. Marko Bislimoski, President Enver Elmazi, Vice-president PhD Atanasko Tuneski, member M.Sc. Natasha Veljanovska, member M. Sc. Andrijana Nelkova – Chuchuk, member
April , 2021
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R E S U M E The global pandemics, caused by the Covid-19 virus, has made the year of 2020 to be remembered as the year that brought fundamental changes in people's lives and functioning globally. To save public health and the safety of its employees, associates, and parties, during the last year the Energy Regulatory Commission has fully supported the conclusions the measures and the recommendations of the Government of the Republic of North Macedonia for dealing with the threat of the Covid-19 virus. Respecting the restrictive measures, the conclusions and the recommendations for prevention, the Energy Regulatory Commission has adopted a decision to minimize operation with clients, and it has appealed to use the institution's e-mail for all correspondence, questions, and requests, as well as for monitoring all Announcements and Notifications through the institution's web page. To protect the health of its staff, the Energy Regulatory Commission has organized remote operation by using adequate IT-tools, as well as operating in shifts. At the same time protective face masks, face shields and disinfectants, air purifiers and antiviral ultra-violet lamps in meeting rooms were purchased, and offices were regularly disinfected. The staff and the associates were constantly reminded to wear face masks, keep physical distance, and wash their hands as most significant prevention measures in dealing with the virus. As a result of these measures, the Energy Regulatory Commission has successfully carried out its duties and activities that were planned for 2020. In 2020, the Energy Regulatory Commission has performed the current administering and improvement of the Information System, has advanced the operational data bases, has administered, and maintained data bases, operating systems, and the hardware system, and has maintained, upgraded and developed a new applicative software in close cooperation with software entities, and the Faculty of Electrical Engineering and Information Technologies engaged for its development and maintenance. In 2020, regular internal control of the system on quality management, as well as the regular annual audit by external auditors of the certification body INTERCERT DOOEL to all procedures within the System on Quality Management and their realization in accordance with the standard, outreaching a result that confirmed that the Energy Regulatory Commission has fulfilled all criteria for continuing certification in accordance with the Standard ISO 9001:2015. During 2020, the electricity market has marked significant positive trends beside the Covid-19 pandemics. After complete market liberalization in 2019, in 2020 the number of consumers that have independently chosen their electricity supplier has increased, hence the number of procedures for electricity supplier switch has increased for 124% compared to 2019. The number of active electricity suppliers was also increased and in 2020 it was 16 which is 4 times more compared to 2019. This means that the competitiveness in the retail electricity market was increased and consumers had better offers by suppliers/traders. For the first time in 2020 the electricity consumption in the open market was greater than
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the electricity consumption in the regulated market and it was 52,24% of the total gross electricity consumption. This trend is expected to continue in the future. One of the most significant events in the electricity market is the nomination of MEMO DOOEL Skopje, the electricity market operator, as operator of the organized electricity market, obliged to organize and to administer the day-ahead electricity market and the intra-day electricity market. As operator of the organized electricity market, MEMO DOOEL Skopje is simultaneously nominated as the electricity market operator, with the obligation to merge the electricity market in North Macedonia with the electricity markets in the region, i.e., primarily with Bulgaria. 2020 has marked enlargement of electricity consumers installing photovoltaic panels for generating electricity to secure a portion of their own electricity needs, as well as enlargement of electricity generators from Photovoltaic Power Plants. In 2019, the trend of increased transmission of natural gas in the amount of 337,8 million nm3 continued, and it was mainly due to the Combined Cycle Power Plants and Heat Plants operating on natural gas. These are record quantities of natural gas transmission, since the transmission system operations has commenced, indicating growth by 14,5 % in relation to the natural gas quantities transmission in 2019, i.e., it is over 42% of the total capacity of the natural gas transmission system. The price of the natural gas on the retail market has marked a significant drop in 2020 for about 15% compared to 2019. The state- owned Joint Stock Company for performing energy activities National Energy Sources Skopje has continued the construction of new main gas pipelines, thus providing connection of all main urban centers in the state with the natural gas transmission system. In the end of 2020, the Assembly of the Republic of North Macedonia approved the Law on Makpetrol AD Skopje Share Purchase within the natural gas transmission operator AD GA-MA Skopje, hence in the first months of 2021 court disputes between the Government and MAKPETROL AD Skopje regarding pipeline ownership began to settle. The whole process shall be finished with the financial transaction of Makpetrol AD Skopje share purchase by the state, hence GA-MA Skopje shall be completely state-owned. 2019 is the year of continuous positive trend in enlarging the number of connected consumers to the district heating system in the territory of Skopje city, thus showing growth in number of consumers by 3 %. In February 2020, the Assembly of the Republic of North Macedonia adopted the Law on Energy Efficiency which prescribes conditions regarding disconnection from the district heating system. The most significant event that has marked 2020 in the market of crude oil, oil derivatives, biofuels and transport fuels in North Macedonia has been the drastic price drop of oil in the stock markets around the world, because of the health crisis caused by Covid-19 virus. This year shall be remembered as historical, because the price of WTI (West Texas Intermediate) crude oil, achieved negative value. Covid-19 imposed quarantine, factories were shut down, transport was halted, and people were not allowed to travel. The pandemics has reduced the global oil demand for about 29 million barrels per day compared to the 100 million barrels from last year. OPEK and the other producers have agreed to reduce production for 9,7 million barrels per day, which is significantly lower compared to the reduced demand, thus leaving oil excess in the market. In 2020 the Energy Regulatory Commission has continued to implement the activities that are in accordance with the provisions of the Law on Water Services Price Determination. Namely, the Energy and Water Services Regulatory Commission has continued to monitor the application of prices for water services and the harmonization of the application of tariffs for water services by implementing the business-plan of water service providers. The year of 2020 was the last year of the first period of regulation 2018- 2020 for water service providers for areas with over 10.000 (equivalent) residents. Tariff Annual Report on operations of the ERC in 2020 - 14 -
determination procedures for the second period of regulation 2021-2023 have been initiated in April 2020 by submitting applications on tariff determination for water services submitted by water service providers. After receiving the reports on the implementation of tariffs for water services and the implementation of the adaptation plan and the business plan from all water providers, the Energy Regulatory Commission has compared the received real parameters with the one that have been previously approved in the Decisions on Tariffs for Water Services. The comparison of parameters has indicated that level reduction of non - revenue water compared to 2019, has continued to be reduced for approximately 3%, which indicates improvement in the status of the non – revenue water in the entire country. During 2020, in accordance with the authorizations laid down in the Law on Energy* and the Law on Energy Efficiency, the Energy Regulatory Commission has adopted or authorized 37 legal acts, ten as general acts, 15 acts in the field of electricity, two in the field of natural gas, five in the field of district heating, and one Rulebook in the field of oil derivatives. In 2020, the Energy Regulatory Commission has issued 54 licenses for energy activities performance, 50 referring to energy activity performance in the field of electricity, two in the field of natural gas, and two in the field of oil derivatives. In 2020, in the overall of 258 procedures on dispute decision making / dispute resolution before the Energy Regulatory Commission, 117 were adopted, 113 were rejected, dismissed, or suspended, and 28 disputes are in procedure for 2021. In 2020, in the overall of 14 Requests on Free Access to Information of Public Interest submitted to the Energy Regulatory Commission, all the requests were responded to. Beside the limiting factors and the new reality that was provoked by the global COVID -19 pandemic that allowed communication and participation in international events only via digital platforms, the Energy Regulatory Commission has had a successful year in an international plan. The year of 2020, beside the active participation in current international associations and their operational institutions from the field of energy and water services, was marked by the participation in several successful international projects with concrete and remarkable results. Foremost, is the recognition by the Energy Community Secretariat, third year in a row, in their Annual Reports referring to implementation, that distinguishes the leading role of the Energy Regulatory Commission in the energy sector reforms within the Energy Community. In the year of 2020, the Energy regulatory Commission shared first place with the regulatory body from Georgia. Financial assets spent in 2019 by the Energy Regulatory Commission for its operations, and in accordance with the competences deriving from the Law on Energy* and the Law on Water Service Prices, amounted with 65.415.904 MKD, and are by 31,40 % lower than the planned financial assets for 2020. This is because a part of the planned activities for 2020 were not realized, primarily because of the global Covid-19 pandemics. The total number of employees, as of December 31, 2020, is 38, of which five are members of the Energy Regulatory Commission, 30 people are in the professional and administrative services and three employees are support and technical staff.
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INSTITUTIONAL DEVELOPMENT
2020
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I. I NS TI TU TI ON AL DE VE LO PM EN T
1.1 ORGANIZATION The Energy Regulatory Commission is composed by five members, one as President. Following the proposal by the Government of the Republic of North Macedonia, the members and the President of the Energy Regulatory Commission are nominated and suspended (dismissed) by the Assembly of the Republic of North Macedonia, considering respective and equal participation of representatives from all communities. The organizational structure and competencies of the Energy Regulatory Commission follow the regulatory authorities in the neighboring countries and the region and correspond to the requirements for complete and full accomplishment of its obligations, as well as the level of energy markets development in the Republic of North Macedonia. As a result, and to the new competences in accordance with the Law on Energy* and the Law on Water Service Prices, as well as to the magnified volume of operations, on November 12th, 2019, the Energy Regulatory Commission has adopted the Rulebook on Internal Organization of the Energy and Water Services Regulatory Commission of the Republic of North Macedonia under no. 01 – 3402 / 1, and the Rulebook on Systematization of Working Posts at the Energy and Water Services Regulatory Commission of the Republic of North Macedonia under no. 01-3403/1 date November 12th, 2019, approved with a written consent by the Ministry of Information and Administration, under no. 12 / 6 – 5099 / 2, on December, 31st, 2019. In accordance with the new Rulebook on Internal Organization of the Energy Regulatory Commission, the sectors and departments listed below were established enabling employees to perform professional, administrative, and technical assistance affairs.
1. Electricity Department 1.1 Electricity Market Unit and 1.2 Grid Infrastructure, Renewable Sources and User Relations Unit
2. Natural Gas, Liquid Fuels and District Heating Department 2.1 Natural Gas and Liquid Fuels and User Relations Unit and 2.2 District Heating Market and User Relations Unit.
3. Water Services Department 3.1 Economic Affairs in the Field of Water Services Unit and 3.2 Technical Affairs in the Field of Water Services Unit
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4. Legal Department 4.1 Normative-Legal Affairs and Licenses Unit; 4.2 Complaints and Consumer Protection Unit.
5. Economic Department 5.1 Economic Affairs in the Field of Electricity Unit and 5.2 Economic Affairs in the Fields of Natural Gas, Liquid Fuels and District Heating
6. Monitoring, Investigations, and Misdemeanor Department 6.1 Energy Markets Monitoring, Analyses and Publications Unit, and
6.2 Investigations and Misdemeanors Unit
7. Department for Information Technology and Statistics 7.1 IT Support Unit, and 7.2 Software Program Development Unit.
8. Human Resources, Logistics, Finance and General Affairs Department 8.1 Human Resources and General Affairs Management Unit; 8.2 Financial-Accounting Affairs Unit and 8.3 Logistics and Public Relations Unit.
The Internal Organization of the Energy Regulatory Commission envisages working posts exempted within the sectors (organizational units), but are of immediate connection to the work of the President and the members of the Energy Regulatory Commission, and are listed below: 1. Advisor to the President and members of the Energy Regulatory Commission on Legal Affairs 2. Advisor to the President and members of the Energy Regulatory Commission on Economic Affairs 3. Advisor to the President and members of the Energy Regulatory Commission on Electricity 4. Advisor to the President and members of the Energy Regulatory Commission on Natural Gas, Liquid Fuels and District heating, and 5. Internal Auditor.
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1.2 ORGANOGRAM OF THE ENERGY REGULATORY COMMISSION
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1.3 HUMAN RESOURCES The most valuable capital of the Energy Regulatory Commission are the employees with their experience and multidisciplinary knowledge they acquire. The total number of employees, as by end of December 31st, 2020, is 38 persons, whereby, five are members to the Energy Regulatory Commission, 30 are persons employed within the professional and administration sections, and three persons are employed as technical assistance staff. The education structure of the members of the Commission and the employees within the professional and administration sections, as by the end of December 31st, 2020, is composed of 12 engineers, 12 economists, seven legal, and four persons with other university education. On November 4th, 2020, the Assembly of the Republic of North Macedonia adopted the Decision on Suspension of the function member of the Energy Regulatory Commission under no. 08- 377/1 published in the '’Official Gazette of the Republic of North Macedonia'’ no. 264/20, and in the 22nd session, held on November 26th, 2020, the Assembly of the Republic of North Macedonia has concluded the resignation from the function of vice- president and a member of the Energy Regulatory Commission. During 2020, through the Administration Agency, the Energy Regulatory Commission has realized eight employments. The development of human resources is directed toward maintenance, development, and improvement of employees. During the reporting 2020, a great attention was dedicated to the professional capacity development and improvement of employees through participation in trainings, seminars, and workshops in the field of the legal, electricity, renewable energy sources, natural gas, economy, and public procurement. Most of these events was organized remotely via various IT tools and communication platforms. The mentioned activities are presented in the chapter on International Activities. The employees of the Energy Regulatory Commission represent its treasure, and to increase the value and the development of the staff, a lot is invested in their individual potential and skills, to acquire new knowledge and monitor the implementation of all legal amendments. One of the preconditions for successful operation of an institution is the investment in the human capital and it contributes to continuous improvement of the organization culture and its image.
1.4 IT-RESOURCES In 2020, the Energy Regulatory Commission has performed the current administering and improvement of the Information System, has advanced the operational data bases, has administered, and maintained data bases, operating systems, and the hardware system, and has maintained, upgraded and developed a new applicative software in close cooperation with software companies engaged for its development and maintenance. Also, current administering and maintenance is applied to the regular hardware equipment, including server machines with applicative software operation, personal computers, and portable computers.
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Main activities by the Information Technology Sector in 2020 refer to the projects listed below: - Development and implementation of new modules for the electronic web- platform on Water Services (https://voda.erc.org.mk) by introducing the methodology of electronic submission of requests on Water Service Tariffs by the Public Municipal Enterprises as Water Service Providers. The existing modules were upgraded, such as: Upgrade of current collection of enterprises and areas, dynamic display of directions, changes in e-mail sending from the platform to all municipal enterprises, sending e-mail when creating a new user to the newly registered user, changes of the design and other changes in the Annual Report, additional changes in reviews, rearranging user profiles and requests for testing and training, change of the layout of requests for determination of tariff for water services with draft-tariffs, upgrade of the e-mail module in the platform, with the possibility to send automatically generated mails from the platform when submitting annual reports and requests for determining a tariff for the water service to the users and the members of the water working group. - The development of a new front-end web platform on market monitoring (https://monitoring.erc.org.mk) was finished, through which holders of licenses for performing energy activities deliver the data on market energy functioning and there was also a continuous upgrade of the back- end software mm-central for analysis of delivered data. The full content of the new web-portal is available and can be managed in three languages: Macedonian, Albanian, and English. Compared to the old version of the web-portal the new web-portal version introduces a more efficient synchronization of the portal with the two bases that are managed with the mm-central software. There were also introduced new communication modules with the users through the web-portal and mm-central. - Adaptive maintenance of the official webpage (https://erc.org.mk), that comprises total web-page redesign, (based on the existing portal), with fully- functional menus/ structure in Macedonian, in Albanian and in English, as well as upgrade and optimization of existing modules. The aim of the web-page redesign of the Energy Regulatory Commission is to provide to visitors a simple and fast access to published contents, as well as easy access to necessary information. The new web-page redesign has a so-called responsive design, i.e., it is adapted/optimized for mobile devices, that is there is a mobile version that can be activated with access through a mobile device (mobile smart phone android or IOS operating system, tablet PS, iPad and other). - In November 2019 the Energy Regulatory Commission became first in the region to introduce a functional web-tool for electricity price comparison (https://www.switch.mk). Within the joint project with NARUC and USAID in 2020, the upgrade of
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existing modules for the administrators of the web-tool was initiated, to administer and generate more easily detail reports on the visitors and users of switch.mk. - Adaptive maintenance and upgrade of the Information System on license management (https://licenci.erc.org.mk), by including new modules based on the existing local portal, such as: Upgrade of current list of enterprises, report generation, dynamic display report module, setting user profiles, upgrade of the e-mail module in the platform, with the possibility to send automatically generated mails when issuing license, to the members of the license working group and to the companies, as well as upgrade and optimization of the existing modules with full functionalities. The license management system provides complete license management in the field of electricity, oil, natural gas, and district heating. In accordance with the legal regulation, the Energy Regulatory Commission is authorized to issue, amend, continue, revoke, suspend and transfer licenses of the above-mentioned fuels. The optimization of processes and activities provides efficient operation and greater safety during the processing and monitoring of the complete procedure related to the licenses. In 2021 system upgrade is provided thus enabling energy companies to deliver requests in electronic form for license issuance through this system. - The Energy Regulatory Commission, in 2020 through the mutual project (Effective Regulation of Cyber Security) with the NARUC (National Association of Regulatory Utility Commissions), and the USAID, has finished the development of the draft - text on the Cyber Security Strategy for the Electricity Sector in the Republic of North Macedonia, and the list on recommendations for the electricity companies, as a core priority in the protection against new threats and risks to the cyber – space, and advancing its safety. Taking into consideration the gravity and the cyber – defense necessity as an integral part of the entire cyber – security , the Energy Regulatory Commission has proposed amendments to the Law on Energy in order to be legally authorized for adopting rules on cyber- security in the electricity sector, that regulate standards of the cyber – security in the electricity sector, the measures and activities on establishing cyber-security culture, and raise awareness on possible threats against all stakeholders within the electricity sector. It is expected that the proposed amendments to the Law on Energy will be adopted by the Assembly of the Republic of North Macedonia in 2021. - Considering the new circumstances caused by the Covid-19 pandemics, the staff of the Energy Regulatory Commission has fully used Microsoft Office 365 tools, especially Microsoft Teams application for conference meetings, for online main sessions and for sharing documents. During 2020, more than 300 conference meetings have been held via Microsoft Teams.
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- The Energy Regulatory Commission together with the National Center for Computer Incident Response - MKD-CIRT and the Electronic Communication Agency - AEK, have initiated a mutual project for automatic monthly external cyber-security check of web applications of the Energy Regulatory Commission for a period of two years. The project is realized as a cloud service by using Qualys Web Application Scanner tool. The project comprises user account for the Energy Regulatory Commission, for access to the service and the possibility to manually scan web-applications and to generate and download the reports that are related to the uncovered cyber-security vulnerabilities and incoherence of scanned web-applications. Monthly detailed cyber testing and finding faults in web-applications with the Qualys Web Application Scanner tool is very important to the Energy Regulatory Commission. - The Energy regulatory Commission was included in the project “Strengthening e- government@, financed by IPA 2017 Program (EuropeAid/140244/DH/SER/MK). The bearers of the project are MIOA and the cabinet of the vice-prime minister of the Government of the Republic of North Macedonia responsible for economic issues. The aim of this project is to provide greater range of public service, reduce the time and necessary means for citizens and businesses in interaction with the public authorities. The specific aim of the project is to expand the offer of the National portal of e-services (https://uslugi.gov.mk) by providing 135 new e- services for citizens and businesses and to improve delivery and quality of public services for citizens and for businesses too as well as for digitalizing a certain number of registers. The period of project implementation is three years, starting from August 2020 to August 2023. The Energy Regulatory Commission shall offer two services for citizens and business-sector: Filing complaints/ proposals and electronic submission of requests for license issuance. - Adaptive and preventive software package maintenance and upgrade for office and archive operation, by expanding the module of e-Rules of Procedure with new functions for generating and reminding users about the response deadline, for each case individually. Upgrade was made to the Register UP1 and Register UP2 with the possibility to distribute cases, review the delivered cases and the possibility to generate reports and statistics. - Upgrade of the software package of accounting and financial operation with new modules for generating detailed reports for clients and staff. - Upgrade of time and attendance system and control of access with new functions, such as detailed monitoring of the working shift for each employee individually through internal web-portal. - Cloud solution for Disaster Recovery as a Service (DRaaS) for managing disaster of information systems for the needs of the Energy Regulatory Commission for a period of 36 months. The DRaaS (Disaster Recovery as a Service) service provides contemporary mechanisms for establishing business continuity of the Energy Regulatory Commission for the IT- infrastructure and the applications in the case of natural disasters or permanent data loss because of human or technical errors. - The Manage Engine for log collection, analysis and generation of reports from IT- systems of the Energy Regulatory Commission was established with the possibility to alarm in real time via e-mail or SMS. The system comprises the following four modules: - Log management, revision and harmonization of Windows Server, SQL
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Server, IIS Sites, VMware vCenter Server, - Monitoring, revision, and log management of Windows Active Directory Domain, - Log management, revision, and harmonization of Office 365 and - Log management, revision, and harmonization of Windows File Server.
1.5 QUALITY SYSTEM MANAGEMENT Since 2014, the operations of the Energy Regulatory Commission have been following the Standard on Quality Management ISO 9001:2008, i.e., equivalent to MKC EN ISO 9001:2009 in the Republic of North Macedonia. In 2019, the Energy Regulatory Commission was awarded with the Certificate of Quality ISO 9001:2015, confirming the established system of quality service, while in 2020 the ERC has continued to apply and realize all new activities that are imposed by this standard in everyday operation, which in the circumstances caused by the Covid-19 pandemics has been shown as very useful and resulted as a positive contribution in achieving the operation goals. In 2020, regular internal control of the system on quality management, as well as the regular annual audit by external auditors of the certification body INTERCERT DOOEL to all procedures within the System on Quality Management and their realization in accordance with the standard, outreaching a result that confirmed that the Energy Regulatory Commission has fulfilled all criteria for continuing certification in accordance with the Standard ISO 9001:2015. Foremost, the certificate is a confirmation for the operation quality performance by the Energy Regulatory Commission and represents a benchmark to further improve services and to meet the needs and demands of consumers, of holders of licenses for energy activities and enterprises that provide water services.
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ELECTRICITY
2020
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I I . E L E C T R I C I T Y
During 2020 electricity market has marked significant positive trends beside the Covid-19 pandemics. After complete market liberalization in 2019, in 2020 the number of consumers that have independently chosen their electricity supplier has increased, hence the number of procedures for electricity supplier switch in 2020 has increased for 124,2 % compared to 2019. The number of active electricity suppliers was also increased and in 2020 it was 16 which is 4 times more compared to 2019. This means that the competitiveness in the retail electricity market was increased, and consumers had better offers by suppliers/traders. 2020 was the first year when electricity consumption in the open market was greater than the electricity consumption in the regulated market and it was 52,24% of the total gross electricity consumption. This trend is expected to continue in the future. One of the most significant events in the electricity market is the nomination of MEMO DOOEL Skopje, the electricity market operator, as operator of the organized electricity market, that is obliged to organize and to administer the day-ahead electricity market and the intra-day electricity market. As operator of the organized electricity market, MEMO DOOEL Skopje is simultaneously nominated as the electricity market operator, with the obligation to merge the electricity market in North Macedonia with the electricity markets in the region, i.e., primarily with Bulgaria. 2020 has marked enlargement of electricity consumers installing photovoltaic panels for generating electricity to secure a portion of their own electricity needs, as well as enlargement of electricity generators from Photovoltaic Power Plants. In 2020, the Energy Regulatory Commission has issued 31 Licenses on Electricity Production by Photovoltaic Power Plants with the total of 7 MW installed capacity.
2.1 BALANCE OF ELECTRICITY DEMAND AND SUPPLY In 2020, the Electricity Transmission and Electricity Distribution System in the Republic of North Macedonia, has in total delivered 8.479 GWh, whereby 5.128 GWh electricity was produced by domestic producers, which compared to 2019, show reduction by 9,38 %, or expressed in absolute value, in the amount of 530 GWh less electricity production than in 2019. Table 2.1 shows the balance of electricity demand and supply in the period from 2018 to 2020 (in GWh).
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Table 2.1 Balance of electricity demand and supply in the period from 2018 to 2020 (in GWh)
2018 2019 2020 GWh 2020/19 2020/18 (%) (%) Delivered into the power system 7,902 8,130 8,479 4.30 7.31 Production 5,468 5,658 5,128 -9.38 -6.23 The largest producer 4,198 4,250 3,643 -14.29 -13.23 Other producers 893 1,059 1,091 3.06 22.22 Producers with preferential tariff 377 349 393 12.73 4.36 Producers with premium chosen tariff 0.056 Total import 2,434 2,472 3,352 35.59 37.71 Gross consumption 7,391 7,483 7,459 -0.33 0.91 Net consumption 6,395 6,504 6,476 -0.44 1.26 Direct consumers of transmission 903 963 957 -0.66 5.94 Regulated supplier 3,871 3,807 3,562 -6.42 -7.97 Other distribution consumers 1,621 1,734 1,957 12.83 20.70 Losses 996 979 983 0.41 -1.30 Transmission 125 120 124 3.24 -0.89 Distribution 871 859 859 0.01 -1.36 Export 512 646 1,011 56.51 97.47 Net Import 1,923 1,825 2,341 28.26 21.73 Import dependance % 26.02 24.39 31.38 Shares on free market % 47.31 49.13 52.24
The production of electricity from renewable energy sources, in 2019, including, large Hydro Power Plants, in 2020 is 1,499 GWh, indicating an increase for 9,5 % compared to 2019, or by 130 GWh. The production of electricity by the Thermal Power Plants is 3.629 GWh, which is by 660 GWh less than in 2019, i.e., a reduction by 15,4 %. The decrease is due to the reduced electricity production from Coal Power Plants, which in 2020 is 2.506 GWh, showing a decrease by 24% compared to electricity production from Coal Power Plants in 2019, i.e., it is a reduction by 784 GWh of power. In 2020, electricity production by Coal Power Plants shows a reduction by 4% compared to the electricity production in 2018 too, when the same was 2.613 GWh. In 2020, in the Electricity Distribution Systems, a total of 468 GWh electricity was delivered by the electricity producers connected to the Electricity Distribution Network, which is less by 7 GWh compared to year 2019. The Net Consumption of electricity, i.e., the consumption of electricity by end consumers in 2020 was 6.476 GWh, indicating reduction by 28 GWh compared to 2019, i.e., a decrease by 0,44 %. Net electricity consumption in 2020 is approximately the same with the net electricity consumption in 2019. The losses of electricity in the Electricity Transmission Systems and the Electricity Distribution Systems in 2020 are in the amount of 983 GWh, an increase by 4 GWh compared to 2019, i.e., by 0,4 %.
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The Gross Consumption of electricity, including the Net Consumption of electricity and the losses of electricity in 2020, is in the amount of 7.459 GWh, indicating decrease by 24 GWh compared to 2019, i.e., by 0,32 %. Hence, it can be concluded that gross consumption of electricity in 2020 is approximately the same with gross electricity consumption in 2019. In 2020, 69 % of electricity consumption is provided by domestic electricity production, while 31 % are provided by import.
2.2 ELECTRICITY PRODUCTION The production of electricity in the Republic of North Macedonia is enabled by the Thermal Power Plants utilizing lignite, mazut (fuel oil) and natural gas as prime source of energy, and also, the Power Plants that use renewable energy sources: water power, the wind, the solar energy, biomass and biogas. The total installed capacity of the Power Plants in 2020, is 2.103,3 MW, indicating increase by 14,8 MW compared to the installed capacity in 2019. Chart 2.1 shows the installed capacity and share of individual technologies on electricity production in 2020. (Expressed in MW and %)
1.200,0 1.034,0 1.000,0
800,0 705,0
600,0
400,0 287,4
200,0 33,52 49,16 13,66 36,8 31,5 1,50 1,75 7,0 0,33 0,6 0,03 0,0 TEC ТЕТО HEC FEC VEC TEC biogas TEC biomass
MW %
In the total of the installed capacity, the Thermal Power Plants participate with highest percentage of 49,16 %, followed by the Hydro Power Plants with 33,52 %, and followed by the combined plants for electricity and district heating production with 13,66 %, whereas all the remaining contribute with 3,66 %. In 2020, new electricity producers with installed capacity of 14,8 MW were connected to the Electricity Power System, and all are connected to the Electricity Distribution Network. The largest part of the new Power Plants is the Photovoltaic Power Plants with installed capacity of 7 MW, or Small Hydro Power Plants with installed capacity of 7,8 MW. The production of electricity from renewable energy sources is unstable on annual level, foremost depending on the meteorology conditions. In the total production of electricity for 2020, the renewable energy sources participate with 29,22 %, indicating
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increase by 21 % compared to 2019, while the production of electricity by the Thermal Power Plants participate with 70,78 %, i.e., by 6,7 % lower in relation to 2019. Chart 2.2 shows the shares of individual technologies on electricity production in 2020.
3.000
2,500
2,000
1,500
1,000
500
0 TEC TETO HEC FEC VEC TEC TEC plants biomass GWh 2,510 1,119 1,287 37 117 57 0 % 48.96 21.83 25.10 0.72 2.28 1.11 0
Chart 2.2 Shares of individual technologies on electricity production in 2020 (%)
In 2020, the largest participation in the production of electricity with 48,96 %, is by the Thermal Power Plants, followed by the Hydro Power Plants with 25,10 %, and by the combined plants for electricity and district heating production with participation of 21,83 %, whereas all the remaining participate with 4,11 %. In 2020, the four companies: AD Elektrani of the Republic of North Macedonia (hereinafter: AD ESM Skopje), AD TE – TO Skopje, AD TEC Negotino, and EVN Makedonija Elektrani DOOEL Skopje, have managed the Power Plants with installed capacity higher than 10 MW. Notwithstanding, in 2020, the state-owned AD ESM Skopje, remains the largest producer of electricity in the Republic of North Macedonia, with shares governed by the Government of the Republic of North Macedonia. Table 2.2 shows the installed capacity and electricity production in 2020.
Table 2.2 Installed capacity and electricity production in 2020
Number of Installed Production Share Producer Share (%) Power Capacity (MW) (GWh) (%) Plants AD ESM Skopje 15 1,478.61 70,30% 3,642.70 71,05% TEC 4 824.00 39,18% 2,509.86 48,95% HEC 8 557.40 26,50% 965.18 18,82% VEC 1 36.80 1,75% 116.88 2,28% TE-TO 2 60.41 2,87% 50.77 0,99% AD TEC Negotino 1 210.00 9,98% 0.00 0,00% TEC 1 210.00 9,98% 0.00 0,00% ТЕ-TO AD Skopje 1 227.00 10,79% 1,067.83 20,83% TE-TO 1 227.00 10,79% 1,067.83 20,83% EVN Power Plants 12 60.04 2,85% 124.78 2,43% HEC 11 58.56 2,78% 124.72 2,43% FEC 1 1.48 0,07% 0.05 0,00% Others 274 127.65 6,07% 291.91 5,69% Annual Report on operations of the ERC in 2020 - 31 -
Small HEC 98 89.55 4,26% 197.51 3,85% FEC 172 30.50 1,45% 37.11 0,72% Biogas 3 7.00 0,33% 57.30 1,12% Biomass 1 0.60 0,03% 0.00 0,00% Total 303 2,103.30 100,00% 5,12 100,00%
In accordance with the Decision on participation in the National mandatory goals on energy produced from renewable energy sources in the gross – final energy consumption, and the participation in energy produced from renewable energy sources in the final transportation consumption, the percentage of the renewable energy sources participating in the gross-final consumption of energy by the end of 2020, should be 23 %. In the Republic of North Macedonia, the participation of electricity, produced from renewable energy sources in the gross-final consumption of energy in 2020 is 29,22 %. Appendix 12.1, as an integral part of this Report, presents an overview of the electricity production in the Republic of North Macedonia for the period of eleven years, from 2010 to 2020. The displayed data do not include the quantities of electricity that the largest producer has used for its own consumption, and for the mines’ electricity needs, thus differing from the data enclosed in Table 2.1. The Review presents significant decrease of the domestic production from 6.744 GWh in 2010 to 5.127 GWh in 2020, indicating reduction by 24 %, or by 1.617 GWh. Largest influence on the mentioned reduction is the production by the AD ESM Skopje, which in 2010 was 6.476 GWh, while in 2020 it amounted with 3.643 GWh, i.e., decrease by 2.833 GWh, or by 44 %. Since 2014, AD ESM Skopje produces electricity below 5.000 GWh annually. The reduction in the electricity production is noticed in both, by the Hydro Power Plants and by the Thermal Power Plants. The production of electricity by the Hydro Power Plants foremost is dependable on the meteorology conditions, and the period of review shows variations by 2.185 GWh in 2010, followed by 816 GWh in 2017. Hence, in the last 11 years, the production of electricity was never reached as in 2010, although in 2012 the new Hydro Power Plant “Sveta Petka” enters in operations. The production of electricity by the Thermal Power Plants records downfall, too. The average electricity production in Thermal Power Plants for the period from 2002 to 2006, is 4.866 GWh, for the period from 2007 to 2010 is 4.636 GWh, for the period from 2011 to 2014 is 4.125 GWh, for the period from 2015 to 2018 is 2.946 GWh and the for the period from 2019 to 2020 is 2.902 GWh. The reason for the trend of production reduction in thermal power plants is due to several defects and operation interruptions of the Mining and Energy Combine Bitola (REK Bitola) reduction of extracted quantities and quality of coal in REK Bitola, the life cycle of the Thermal Power Plants, already overdue, and adequate investments, lower efficiency, etc. In 2020 AD ESM faced floods in the mines of REK Bitola, that resulted in long-term production cut. Based on the mentioned reasons, and foremost, the exploitation of the entire lignite excavations at “Oslomej”, the Thermal Power Plant “Oslomej” almost fail to produce any electricity. Electricity production in AD ESM in 2020, is almost reduced by half compared to 2011, i.e., it is only 52 % (Appendix 12.1). Nevertheless, the power system of the Republic of North Macedonia is stable and electricity supply continues because of the good interconnection with the neighboring electricity transmission systems. But it should be considered that the plans on the development of large Power Plants that use renewable energy sources, mostly wind power plants, shall be supported by the plans on the Annual Report on operations of the ERC in 2020 - 32 -
development of large hydro power plants or natural gas power plants, which shall support the electro energy system and provide certain services to the electricity transmission system operator for correct system management and undertaking necessary activities for maintaining its stability. Unfortunately, the interest for constructing this type of large power plants is very low, not only in North Macedonia but in the region too, i.e., no large new power plants are being constructed in the region. Thus, it is necessary that the authorized institutions undertake adequate measures for attracting investments in this field, because as is the case in other energy facilities, the deadline for constructing big power plants is significantly long, i.e., it lasts several years.
2.3 RENEWABLE ENERGY SOURCES The portfolio of producers of electricity from renewable energy sources is composed by the large Hydro Power Plants (HEC) with installed capacity above 10 MW, the small sized Hydro Power Plants (MHEC) with installed capacity lower than 10 MW, the Wind Power Plants (VEC), the Photovoltaic Power Plants (FEC), the Biogas Thermal Power Plants, and the Biomass Thermal Power Plants. The installed capacity and the production of Power plants that use renewable energy sources is displayed in Table below and are divided according to technology:
Table 2.3 Installed capacity and production of electricity from renewable energy sources in 2020 according to technology
Share in Share in Installed Type of Number of the Production total capacity Power Plant Power installed (GWh) production (MW) Plants Capacity (%) (%) Total 295 779.96 37,10% 1,498 29,22% HEC 10 586.65 27,90% 1,003 19,56% VEC 1 36.80 1,75% 117 2,28% Mali HEC 107 119.2 5,67% 284 5,54% FEC 173 29.72 1,41% 37 0,72% Biogas 3 6.99 0,33% 57 1,11% Biomass 1 0.60 0,03% 0 0,00% Within the total 303 domestic electricity producers, 295 use renewable energy sources, whereby 203 use preferential tariffs, and the remaining 91 Power Plants do not use the measures of support to the production of electricity. In 2020, 38 new Power Plants using renewable energy sources have initiated operations: 6 Hydro Power Plants and 32 Photovoltaic Power Plants. The entire electricity produced by the Wind Power Plant VEC Bogdanci, the Biogas Thermal Power Plants, and the Biomass Thermal Power Plants, is purchased by the Electricity Market Operator under preferential tariffs. Within the total number of the Small Hydro Power Plants, 96 sell the produced electricity under preferential tariffs, while the remaining 11 Power Plants sell the produced electricity on the electricity market. The number of preferential producers dominate in both, the Small Hydropower Plants, and the Photovoltaic Power Plants. Namely, 102 Photovoltaic Power Plants use the preferential tariff, while the remaining 71 Photovoltaic Power Plants sell the produced electricity on the Electricity Market. Taking into consideration that the large Hydro-Power Plants operate on
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installed capacity not lower than 10 MW, thus, failing to acquire the status of preferential producers, the entire production is sold on the Electricity Market. Notwithstanding the fact that 97 % of the total number of electricity production by the Power Plants use renewable energy sources, or expressed in absolute numbers, 295 out of 303 Power Plants use renewable energy sources, and their participation percentage in the total of the installed capacity, is 37 %. The participation of the renewable energy in the total of electricity produced by domestic producers, is even lower, and amounts with 29 %. The participation of preferential producers operating under preferential tariffs in the total of the installed capacity by renewable energy sources, is 19 %, whereof, the total installed capacity in the Republic of North Macedonia, is 7 %. the preferential producers operating under preferential tariffs, take part in the produced electricity by domestic producers with 8 %, whereas, in the production part with renewable sources, the preferential producers participate in with 26 %. In case, the large Hydro Power Plants are exempted from the portfolio of the renewable energy sources, due to the proportionality of the comparison, in 2020 the production of 489.251 MWh is from renewable energy sources, while 393.603 MWh is a production by the preferential producers.
2.3.1 MEASURES TO SUPPORT RENEWABLE ENERGY SOURCES Measures to support the production of electricity from renewable energy sources are aiming to encourage investments in the optimal usage of available potential of renewable energy sources in the Republic of North Macedonia, support to the accomplishment of the National mandatory goals on renewable energy sources participation in the total energy consumption, and support to conditions for environment protection and mitigation of climate changes. The preferential tariff and the premium tariff are available as a measure to support electricity production from renewable energy sources. The preferential tariff as a measure to support electricity production from renewable energy sources was introduced in 2007, and the first Power Plants to sell the produced electricity under preferential tariff, has started operation in 2010. In addition to the preferential tariff, in accordance with the Law on Energy*, since 2018, the Premium tariff is also introduced as a measure for support. The premium tariff represents an additional amount out of the price that the preferential producer has achieved by selling the produced electricity in the electricity market. The preferential producer that uses premium tariff is chosen via tender procedure with auction, carried out by the Ministry of Economy.
2.3.1.1 PREFERENTIAL TARIFF The preferential tariff is a regulated purchase price of electricity produced by a preferential electricity producer by the electricity market operator. Preferential producers operating under preferential tariff are guaranteed with the tariff of each kWh produced electricity under which the Electricity Market Operator is obliged to purchase the total of electricity produced by the preferential producers in a period of 15 to 20 years, depending on the type of the Power Plant. The benefit for the preferential producers that use the preferential tariff is that the electricity market operator takes the balance responsibility for these producers.
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In the following Table 2.4 are presented the types of technologies for which preferential tariff, upper limit of installed power of the power plant, the amount, and the period of using preferential tariff, as well as the prescribed total installed capacity of the Power Plants is awarded. Table 2.4. Preferential tariffs laid down in the Decree on the measures for the support of the production of electricity generated from renewable energy sources and the prescribed total installed capacity of Power Plants to which preferential tariffs are awarded with the Decision on Total Installed Capacity of Preferential Electricity Producers Period of Upper limit of Prescribed Type of preferential installed capacity of Amount of total Power Plant tariff use the Power Plant preferential tariff installed use capacity Monthly quantities of delivered electricity per blocks:
I Block: 12,00 €¢/kWh (≤ 85.000 kWh) II Block: 8,00 €¢/kWh Hydro Power Plant 10 MW 20 years (> 85.000 и ≤ 170.000 kWh) III Block: 6,00 €¢/kWh (> 170.000 и ≤ 350.000 kWh) IV Block: 5,00 €¢/kWh (> 350.000 и ≤ 700.000 kWh) V Block: 4,50 €¢/kWh (> 700.000 kWh) Wind Power Plant 50 MW 8,9 €¢/kWh 20 years 160 MW
≤ 3 MW
Biomass Thermal Power (to 30.06.2021) 18 €¢/kWh 15 years 10 MW Plant ≤ 1 MW (from 1.07.2021)
≤ 3 MW
Biogas Thermal Power (to 30.06.2021) 18 €¢/kWh 15 years 20 MW Plant ≤ 1 MW (from 1.07.2021)
In 2020, the number of preferential producers is 203, their installed capacity is 148.472 kW, and 2.553.714.789 MKD are paid for 393.603.786 kWh of produced electricity, i.e., the average price of produced electricity from preferential producers is 105 EUR/MWh. Тable 2.5 Installed capacity, electricity production, and paid amounts to preferential producers operating under preferential tariff according to technology in 2020
Type of Number of Installed Production Payments Power Power Share Share Share capacity (kW) (kWh) (MKD) Plant Plants (%) (%) (%) Small HEC 96 87.360 58,84% 195.887.077 49,77% 981.361.180 38,43% VEC 1 36.800 24,79% 116.883.810 29,70% 641.745.336 25,13% Biomass 1 600 0,40% 0 0,00% 0 0,00%
Biogas 3 6.999 4,71% 57.297.100 14,56% 636.257.144 24,91% FEC 102 16.713 11,26% 23.535.799 5,98% 294.351.129 11,53% Total 203 148.472 100 % 393.603.786 100 % 2.553.714.789 100 %
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The first eight power plants whose produced electricity is purchased at preferential tariffs start operating in 2010, while in 2020 their number is 203 (Table 2.5). In the period from 2010 to 2014 the portfolio of preferential producers is composed by Photovoltaic and Hydro Power Plants, while in 2015 the portfolio is enlarged with one Wind and two Biogas Thermal Power Plants. In 2019, the first Biogas Thermal Power Plant has started operations in our country. In 2020, 6 new Hydro Power Plants initiated operations, whose produced electricity is purchased at preferential tariffs. Regarding the number of Power Plants, Photovoltaic Power Plants are dominant, followed by Hydro Power Plants, Biogas Thermal Power Plants, one Wind Power Plant VEC Bogdanci, and one Biomass Power Plant. The dynamics of the number of preferential producers that use preferential tariff is displayed in Chart 2.3.
101 102 102 102 102 102 89 96 90 120 79 73 64 100 58
80 34 33 27 60 16 8 13 3 8 40 5 2 3 3 3 3 3 20 1 1 1 1 1 1 1 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Biomass Thermal Power Plants Wind Power Plants Biogas Thermal Power Plants Hydro Power Plants Photovoltaic Power Plants Chart 2.3 Number of preferential producers using preferential tariff according to technologies, in the period from 2010 to 2020 The total installed capacity of the 203 preferential producers operating under preferential tariffs, as by the end of December 31st, 2020, is 148,47 MW. The total installed capacity of these preferential producers in 2020 is increased by 5,5 % or 7.730 kW compared to 2019. The trend of the domination of the installed capacity of Hydro Power Plants, compared to other Power Plants continues in 2020 too. The installed capacity of small Hydro Power Plants in 2020 is 87,36 MW, i.e., 58,84 % of the total installed capacity of preferential producers operating under preferential tariff.
Annual Report on operations of the ERC in 2020 - 36 -
The other types of Power Plants have not changed their installed capacity in 2020 compared to the previous year. The installed capacity of preferential producers according to the type of Power Plants for the period from 2010 to 2020 is displayed in Chart 2.4.
160.000
140.000
120.000
100,000
80,000
INSTALLED KW CAPACITY IN 60,000
40,000
20,000
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Photovoltaic Power Plants 110 1,467 3,787 7,229 12,851 16,663 16,713 16,713 16,713 16,713 16,713 Biogas Thermal Power Plants 3.999 5,999 6,999 6,999 6,999 6,999 Biomass Thermal Power Plants 600 600 Wind Power Plants 36.800 36,800 36,800 36,800 36,800 36,800 Hydro Power Plants 2.572 3,689 6,377 17,29926,750 57,948 60,887 67,509 72,460 79,630 87,360
Chart 2.4 Installed capacity of Power Plants using preferential tariffs (in kW) In 2020, 393.603.786 kWh of electricity is produced by preferential producers, representing an increase of approximately 13 %, compared to 2019 (Chart 2.5). In 2020, compared to 2019, an increase of produced electricity by all types of Power Plants was noted, except for the Biomass Thermal Power Plant, which has no production in 2020.
Annual Report on operations of the ERC in 2020 - 37 -
250.000.000
200.000.000
150,000,000
100,000,000
50,000,000
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Hydro Power Plants 2.188.160 8,503,516 15,279,391 29,751,814 68,680,964 108,645,092189,152,983 141,186,774 202,962,188 169,032,224 195,887,077
Wind Power Plants 115.477.420109,482,530 110,480,280 97,338,130 101,807,280116,883,810 Biomass Thermal Power Plants 337 0 Biogas Thermal Power Plants 17.708.234 36,033,307 51,551,388 54,049,728 55,102,011 57,297,100 Photovoltaic Power Plants 26.193 1,120,656 2,826,640 8,689,949 13,267,032 21,782,436 23,699,114 23,751,471 22,788,332 23,225,436 23,535,799
Hydro Power Plants Wind Power Plants Biomass Thermal Power Plants Biogas Thermal Power Plants Photovoltaic Power Plants
Chart 2.5 Electricity produced by preferential producers using preferential tariff according to technologies, in the period from 2010 to 2020 (in kWh) What characterizes the production of electricity from renewable energy sources by the preferential producers in our country, is the dominant production of electricity from renewable energy sources in the first half of the year, compared to the second half. Namely, the first half of 2020 records production of 64 % in the total of produced electricity by preferential electricity producers. The reason for the mentioned outcome is the increased production of energy by the Small Hydro Power Plants in this period of the year, especially in March, April, and May. Chart 2.6 displays the monthly production of electricity by preferential producers in 2020, according to the type of technology.
Annual Report on operations of the ERC in 2020 - 38 -
December 9.915 6.720 4.991 647
November 5.141 7.982 4.559 1.396
October 8.368 8.073 4.934 1.895
September 5.990 6.995 4.814 2.268
August 10.824 9.349 4.892 2.564
July 10.718 9.309 4.878 2.833
June 17.770 10.553 4.699 2.519
May 32.312 11.216 4.958 2.451
April 38.461 7.440 4.291 2.288
March 11,019 5,015 1,755 30,601 February 14.635 12.253 4.420 1.692
January 11.145 15.968 4.841 1.221
0 10.000 20.000 30.000 40.000 50.000 60.000 production in MWh
Hydro Power Plants Wind Power Plants
Biogas Thermal Power Plants Photovoltaic Power Plants
Chart 2.6 Monthly production of electricity by preferential producers in 2020 (in MWh), according to the type of technology Within the entire period of the preferential tariffs’ application, with exemption of 2015, the Small Hydro Power Plants have dominant role in paid amounts for the produced electricity, compared to the other types of Power Plants. In 2020, for the electricity produced by small Hydro Power Plants, 981.361.180 MKD are paid for 95.887.077 kWh produced electricity at an average price of 5,01 MKD per kWh, for electricity produced by Wind Power Plants, 641.745.336 MKD are paid for 116.883.810 kWh produced electricity per average price of 5,49 MKD per kWh, for Biogas Thermal Power Plants, 636.257.144 MKD are paid for 57.297.100 kWh produced electricity at average price of 11,10 MKD per kWh and for the Photovoltaic Power Plants 294.351.129 MKD are paid for 23.535.799 kWh produced electricity at average price of 12,51 MKD per kWh. Appendix 12.2 displays paid assets in 2020 for each Power Plant separately.
Annual Report on operations of the ERC in 2020 - 39 -
The paid assets for supporting preferential producers that operate under preferential tariff in the period from 2010 to 2020, according to the type of Power Plant is displayed in Chart 2.7.
0 294.351.129 981.361.180 641.745.336 636.257.144 2020 3.110 841.711.395 557.415.411 610.141.358 2019 289.122.502 970.301.537 532.902.132 598.468.979 2018 283.312.886 721.298.920 605.728.865 571.609.122 2017 296.764.884 899.881.564 600.053.787 399.442.019 2016 294.829.383 557.179.075 633.149.914 278.938.770 2015
196.439.070 356.522.994 208.036.061 2014 165.521.324 158.855.605 2013 89.401.070,00 64.517.561 2012 49.730.337 28.001.578 2011 13.288.645 660.710 2010
0 500.000.000 1.000.000.000 1.500.000.000 2.000.000.000 2.500.000.000 денари Hydro Power Plants Wind Power Plants Thermal Power Plants Biomass
Biogas Thermal Power Plants Photovoltaic Power Plants
Chart 2.7 Repayments to preferential producers using preferential tariff in the period from 2010 to 2020 (in MKD)
Annual Report on operations of the ERC in 2020 - 40 -
The Electricity Market Operator sells the purchased electricity produced by preferential producers to suppliers and traders with electricity, which is further sold to end consumers. The suppliers and traders purchase the quantity of electricity produced by the preferential producers from the Electricity Market Operator on daily basis, in respective manner with participation as notified in the electricity needs by their consumers within the total forecasted electricity needs by consumers of electricity in the Republic of North Macedonia. The Chart below displays the purchase of electricity produced by preferential producers, expressed in percentage for each electricity supplier and trader which sell electricity to end consumers individually.
EVN US 57,19% POWER ON 0,01% OKTA 0,02% VANGARD 0,04% ELEM TRADE 0,13% FUTURE ENERGY 0,25% ELNOR 0,30% MIST ENERGY 0,32% SOLARIS TRADE 0,46% ENERGIA GAS AND POWER 0,82% SOLARPRO HOLDING 1,38% ENERGY ACTIVE 1,57% U POWER 1,86% EFT 7,41% EDS 13,78% EVN Supply 14,46%
0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00%
Chart 2.8 Shares of suppliers / traders in the purchase of electricity produced by preferential producers The price per kWh at which the electricity market operator sells electricity to suppliers and traders is calculated at the end of the month as the average price at which the electricity market operator purchased electricity from preferential electricity producers using a preferential tariff. The average price for the electricity produced by the preferential producers using preferential tariff in 2020 amounts with 6,49 MKD / kWh, indicating growth compared to the price of 6,58 MKD / kWh in 2019. The Small Hydro Power Plants and the Wind Power Plants, compared to other three technologies that comprise the portfolio of preferential producers using preferential tariffs, represent a significantly cost – effective source of electricity produced from renewable sources. The analyzed period indicates that the average price of the produced electricity by the Small Hydro Power Plants is approximately 5 MKD / kWh, whereas, by the Wind Power Plants is approximately 5,5 MKD / kWh, which is below the average realized price for the preferential producers. The average price of the Photovoltaic Power Plants in the first three years, in the analyzed period, is significantly higher from the average price within the last five years in the analyzed period. The reason for this drastic difference in the average price of electricity produced by photovoltaic power plants is the reduction of preferential tariffs for electricity
Annual Report on operations of the ERC in 2020 - 41 -
produced by photovoltaic power plants with the 2013 Decree on preferential / feed-in tariffs for electricity. The average price for electricity produced by the Biogas and Biomass Thermal Power Plants, also shows growth above the average realized price of electricity produced by all types of Power Plants. Chart 2.9 displays in detail the dynamics of electricity average prices for each renewable source individually, and for each year in the analyzed period.
30,00
25,00
20,00 kWh ден./
15,00
8,50 8,44 10,00 8,08 6,58 6,89 6,32 6,49 6,30 6,12 6,71 6,32
5,00
0,00 20 20 20 20 20 20 20 20 20 20 20 10 11 12 13 14 15 16 17 18 19 20 Hydro Power Plants 6,07 5,85 5,85 5,56 5,19 5,13 4,76 5,11 4,78 4,98 5,01 Wind Power Plants 5,48 5,48 5,48 5,47 5,48 5,49 Biomass Thermal Power Plants 9,23 Biogas Thermal Power 11,09 11,09 11,09 11,07 11,07 11,10 Photovoltaic Power Plants 25,22 24,99 22,82 18,28 15,68 12,81 12,44 12,49 12,43 12,45 12,51 Average feed-in tariff 6,30 8,08 8,50 8,44 6,89 6,32 6,12 6,71 6,32 6,58 6,49
Chart 2.9 Average price of electricity produced by preferential producers in the period from 2010 to 2020 (MKD / kWh)
Chart 2.10 displays the ratio of payments to support preferential producers using preferential tariff with the quantity of electricity produced for each individual renewable source of electricity.
Annual Report on operations of the ERC in 2020 - 42 -
kWh 50% 30% 15% 6%
2020 МКД 38% 25% 25% 12% kWh 48% 29% 0% 16% 7%
2019 МКД 37% 24% 0% 27% 13% kWh 54% 26% 14% 6%
2018 МКД 41% 22% 25% 12% kWh 43% 34% 16% 7%
2017 МКД 33% 28% 26% 14% kWh 53% 31% 10% 7%
2016 МКД 41% 27% 18% 13% kWh 41% 44% 7% 8%
2015 МКД 33% 38% 12% 17% kWh 84% 16%
2014 МКД 63% 37% kWh 77% 23%
2013 МКД 51% 49% kWh 84% 16%
2012 МКД 58% 42% kWh 88% 12%
2011 МКД 64% 36% kWh 99% 1%
2010 МКД 95% 5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Hydro Power Plants Wind Power Plants Biomass Thermal Power Plants
Biogas Thermal Power Photovoltaic Power Plants
Chart 2.10 Ratio of paid amounts to preferential producers and the quantity of electricity produced according to type of technology
The ratio of paid amounts to support, and the quantity of electricity produced is in favor of electricity produced by the Hydro Power Plants and the Wind Power Plant VEC Bogdanci. This implies that expenses for supporting the production of electricity by the Hydro Power Plants and the Wind Power Plants, on average, are lower per unit of produced electricity than expenses to support Photovoltaic Power Plants and Biogas Thermal Power Plants. The ratio of paid amounts to support, and the quantity of electricity produced is in favor of electricity produced by the Hydro Power Plants and the Wind Power Plant VEC Bogdanci. Namely, in 2020, Hydro Power Plants participate with 50 % in the total produced electricity by preferential producers, while in the total of paid amounts for preferential producers they participate with 38 %. The Wind Power Plant VEC Bogdanci, in 2020 participate with 30 % in the total produced electricity by preferential producers, while in the total of paid amounts for preferential producers they participate with 25 %. The ratio of paid amounts to support, and the quantity of electricity produced is less in favor of electricity produced by the Photovoltaic and Biogas Thermal Power Plants. In 2020, Photovoltaic
Annual Report on operations of the ERC in 2020 - 43 -
Power Plants participate with 6 % in the total produced electricity by preferential producers, while in the total of paid amounts for preferential producers they participate with 12 %. In 2020, Biogas Thermal Power Plants participate with 15 % in the total produced electricity by preferential producers, while in the total of paid amounts for preferential producers they participate with 25 %. This implies that expenses for supporting the production of electricity by the Hydro Power Plants and the Wind Power Plants, on average, are lower per unit of produced electricity than expenses to support Photovoltaic Power Plants and Biogas Thermal Power Plants.
2.4 ELECTRICITY CONSUMPTION In 2020, the net consumption of electricity is in the amount of 6.476 GWh, whereby, the consumption of electricity by consumers directly connected to the Electricity Transmission System, amounts with 957 GWh, including the own consumption of electricity by the Power Plants. This electricity consumption is reduced by 0,44 % compared to the consumption in 2019, which was 963 GWh. It can be concluded that in 2020 there are no significant changes in electricity consumption from direct consumers compared to 2019. The consumption of electricity by consumers connected to the Electricity Distribution Network is in the amount of 5.519 GWh, showing reduction by 0,4 %, or by 22 GWh in relation to the consumption of 5.541 GWh electricity in 2019. The consumption by the Electricity Distribution Network has recorded downfall in the delivery of electricity on the regulated market on the account of the growth of electricity consumption on the free market.
2.5 ELECTRICITY IMPORT AND EXPORT The Republic of North Macedonia is import – dependable country in satisfying the electricity requirements. The import of electricity, in the past years, is in the range of 20 % to 30 % of the total consumption of electricity, and the country depends on the domestic production of electricity. In 2020, the net-import of electricity is in the amount of 31,38% of the total consumption. In 2020, the total electricity import is 3.352 GWh and is the largest since 2010 onwards, i.e., it is by 35,59 % greater than the import in 2019. It should be emphasized that these quantities of electricity are not entirely consumed by the consumers of the Republic of North Macedonia,but one part was only transited through the country, thus, to be re- imported by electricity traders and these quantities amount with 373 GWh, and compared to 2019, show sixfold increase. Also, the total production of electricity is not fully used for the needs of consumers in the Republic of North Macedonia, but part of it is exported through the Macedonian Electricity Power System by the traders. In 2020, the calculated export of electricity obtained by the electricity producers is in the amount of 639 GWh, indicating growth by 9 % than in 2019, when the export was in the amount of 585 GWh, or by 70 % increase in export of the production of electricity compared to 2018, amounting with 376 GWh, thereof. Therefore, the mentioned signifies that the total import of electricity in 2020 is 1.011 GWh, indicating increase by 56,5 % in relation to 2019, i.e., by 97,5 % in relation to 2018. The import dependence of the Republic of North Macedonia is determined based on
Annual Report on operations of the ERC in 2020 - 44 -
the ratio between the domestic production of electricity and the gross – consumption of electricity. The gross – consumption of electricity includes the electricity consumption by end consumers and the electricity requirements to cover electricity losses in both, the Electricity Transmission Network, and the Electricity Distribution Network. The Graph below displays the production of electricity used for consumers of electricity in the Republic of North Macedonia, the consumption of electricity, and the import dependence.
9000 7927 8000 7461 7415 7390 7484 7459 7000 5658 6000 5384 5447 5468 5271 5127 5000
4000 2656 3000 2341 2077 1968 1922 1826 2000
1000
0 2015 2016 2017 2018 2019 2020
Consumption Production Import
35,00 33,51 31,38 27,84 30,00 26,54 26,01 24,40 25,00
20,00 2015 2016 2017 2018 2019 2020 Shares in the net import of consumption
2.11 Consumption, production, net import of electricity, and shares in the net import of electricity consumption in the period from 2015 to 2019 (in GWh and %)
The import of electricity required to cover the total consumption of electricity in 2020, is in the amount of 2.341 GWh, indicating increase by 28,31 % in relation to 2019, while in relation to 2017, the reduction was by 21,73 %, or by 418 GWh. The mentioned increase is due to the reduction of the electricity production while the gross – consumption of electricity has remained the same. 2.6 GRID SERVICES In accordance with the Law on Energy*, the Electricity Transmission System Operator and the Electricity Distribution System Operator perform regulated energy activities of transmission or distribution respectively, whose prices and tariffs are prescribed and approved by the Energy Regulatory Commission in accordance with the Public Service Obligation of the Law on Energy*. The energy activity referring to electricity transmission, is performed by the Electricity Transmission System Operator of the Republic of North Macedonia, the State- Annual Report on operations of the ERC in 2020 - 45 -
Owned AD for Electricity Transmission and Power System Management – Skopje (hereinafter: (hereinafter: the AD MEPSO Skopje), based on the License for performing electricity transmission, issued by the Energy Regulatory Commission. The energy activity referring to electricity distribution is entrusted to performance by two different electricity distribution system operators, i.e., by two individual legal entities: Elektrodistribucija DOOEL Skopje (hereinafter: Elektrodistribucija) and AD ESM Skopje, also based on licenses for performing energy activities of electricity distribution, issued by the Energy Regulatory Commission. In accordance with the Law on Energy*, AD ESM is entrusted with locally performing electricity distribution activity, to the area of the industrial complex of former “Rudnici i Zelezarnica – Skopje”, on territory of the municipalities Butel and Gazi Baba and in the Electricity Distribution System to which less than 100.000 users are connected. Aiming to provide transparency, objectivity and nondiscrimination to all systems users and Electricity Market participants, the Law on Energy* prescribes that the Electricity Transmission System Operator shall not be comprised in the activities of electricity production, electricity distribution, electricity trade and supply as well as electricity market organization and management and shall not own licenses for the above-mentioned activities. Aiming to provide transparency, objectivity and nondiscrimination to all systems users and Electricity Market participants, the Law on Energy*, the Electricity Distribution System Operator shall not be comprised in the activities of electricity distribution i.e., it shall not be comprised in the activities of electricity production, electricity transmission, electricity trade and supply as well as electricity market organization and management, and shall not own licenses for the above mentioned activities.
2.6.1 ELECTRICITY TRANSMISSION In the Republic of North Macedonia, the energy activity of electricity transmission is performed by one legal entity, i.e., there is one electricity transmission system operator. AD MEPSO Skopje is a certified operator of the electricity transmission system by the Energy Regulatory Commission in accordance with the terms of the Third Package of the legislation on internal energy market, with prior positive opinion by the Energy Community Secretariat. The annual report on the implementation of the Program on Compliance of AD MEPSO Skopje, in relation to the obligations that result from the ownership division for 2019, of the Compliance Officer of AD MEPSO Skopje was approved by the Energy Regulatory Commission on March 30th, 2020. On March 2nd, 2020, the Compliance Officer has delivered for approval to the Energy Regulatory Commission the Annual Report on the implementation of the Compliance Program of AD MEPSO Skopje in relation to the obligations that result from the ownership division for 2020.
2.6.2 ELECTRICITY DISTRIBUTION In the Republic of North Macedonia there are two individual electricity distribution systems, that are separate and independent, one in ownership by Elektrodistribucija, and the second in ownership by AD ESM Skopje. Elektrodistribucija is a sole legal entity, established by EVN Makedonija AD Skopje to perform the activity of electricity distribution, and does not possess a license for performing energy activities referring to production, transmission, organization and governance of the Annual Report on operations of the ERC in 2020 - 46 -
Electricity Market, trade and / or supply of electricity. In the end of 2019, the Compliance Officer of Elektrodistribucija has submitted to the Energy Regulatory Commission, the Annual Report on the implementation of the Program on compliance of activities by Elektrodistribucija in providing objectivity, transparency, and prevention of discriminatory conduct in the performance of electricity distribution. The Annual Report on the implementation of the Program was approved by the Energy Regulatory Commission on March 30th, 2020. AD ESM is entrusted with performing electricity distribution activity to certain geographical area, more exactly, to the area of the industrial complex of former “Rudnici i Zelezarnica – Skopje”, on territory of the municipalities Butel and Gazi Baba.
2.6.3 ELECTRICITY TRANSMISSION SYSTEM The Electricity Transmission System connects larger production capacities, along with the two electricity distribution systems in the country, as well as large consumers that are connected to the electricity transmission network. The Electricity Transmission Network Operator operates with voltage levels of 400 kV and 110 kV. The main pillar of the Electricity Transmission Network are 400 kV transmission lines. They assemble a 400 kV ring to connect the north part of the country, where the largest number of electricity consumers are located, with the south part, where the number of electricity consumers is significantly lower, but it is the part of the country to accommodate the largest production facilities. Simultaneously, the 400 kV transmission lines serve as an interconnection with the neighboring power systems. The Electricity Transmission System of the Republic of North Macedonia is connected to the Electricity Transmission Systems of all neighboring countries, with the exemption of Albania, through five 400 kV interconnections, accountable for the below countries: - In Kosovo, through the 400 kV transmission line TS Skopje 5 – TS Ferizaj 2 (Uroshevac); - In Serbia, through 400 kV transmission line TS Shtip – TS Vranje 4; - In Bulgaria, through 400 kV transmission line TS Shtip – TS Mogila; - In Greece, through two 400 kV transmission line TS Bitola 2: TS Meliti and TS Dubrovo – TC Thessaloniki. To connect our Electricity Transmission System to the Electricity Transmission System of Albania, the Energy Community has adopted as priority the Project on Regional Interest (PECI) that comprises the construction of 400 kV transmission line Bitola – Elbasan with a length of 92 km, as well as the construction of TS 400/100 kV/kV Ohrid. This project shall finalize the construction of corridor eight, and shall enable interconnection of the North Macedonia, Bulgaria, Albania, Montenegro, and Italy. In 2020, for the whole project two separate agreements were concluded, one for the construction of a 400 kV transmission line Bitola – Elbasan and the other TS 400/100 kV/kV Оhrid. Because of Covid - 19 pandemics, the project was slowed down and is expected to be finished by 2023. The Electricity Transmission Network of 110 kV is the most expanded and the most developed and represents a connection of the large hydro and thermal power plants, the electricity distribution systems, so as all larger industrial capacities connected to the electricity transmission network. The interconnection of the 400 kV and 110 kV transmission grid is achieved by the five Transformer stations: TS Skopje 4, TS Skopje 5, TS Bitola 2, TS Dubrovo, and TS Stip. The Electricity Transmission System on 110 kV level enables electricity supply to small number of consumers directly connected to the Electricity Transmission
Annual Report on operations of the ERC in 2020 - 47 -
System, whereas the Electricity Distribution Systems connects smaller production capacities along with consumers connected to the Electricity Distribution System. AD MEPSO Skopje is an owner of overall five Transformer stations TS 400 / 110 kV / kV, nine Transformer stations TS 110 / xx kV / kV entirely owned, and 41 Transformer stations TS 110 / xx kV / kV in mixed ownership with Elektrodistribucija. AD MEPSO Skopje manages the Network with 577,033 km length of 400 kV grid, and 1.544,7 km length of 110 kV grid.
2.6.3.1 ELECTRIICTY TRANSMISSION NETWORK MAINTENANCE PLAN In accordance with the Law on Energy*, the Electricity Transmission System Operator each year is obliged to deliver the Plan on the Maintenance of the Electricity Transmission Network. On June 19th, 2020, AD MEPSO Skopje has delivered for approval to the Energy Regulatory Commission the Plan on Electricity Transmission System Maintenance for 2020. The Energy Regulatory Commission has given its remarks and comments related to the plan, which were taken into consideration by AD MEPSO and were implemented in the delivered plan, and the same was approved on July 13th, 2020. The plan of AD MEPSO Skopje, beside the internal transmission lines of the electricity transmission network, comprises the activities that are related to the maintenance of other elements in the electricity transmission network, such as: disconnectors, surge arresters, power transformers, measuring transformers, batteries, protection examination.
2.6.3.2 DEVELOPMENT AND INVESTMENT PLAN Pursuant to the Law on Energy*, the Electricity Transmission System Operator shall be obliged, on annual basis, to submit a Plan on Electricity Transmission System Development for a period of 10 years, to the Energy Regulatory Commission for authorization. On January 28th, 2020, the Energy Regulatory Commission has approved the Plan on Electricity Transmission System Development for the period from 2020 to 2029, with anticipated projects and activities such as: construction of new elements in the Electricity Transmission Network, construction of interconnection transmission line with Albania, reconstruction and revitalization of the Electricity Transmission Network, modernization, research, new connections, development of the telecommunication equipment, development of command and management equipment, development of SCADA system, and so on. One of the most significant projects of AD MEPSO Skopje, related to both, the significance for the Electricity Transmission System and the investment perspective, is the construction of the new 400 kV transmission line to Albania. This project shall provide reduction in the electricity losses, growth of the cross – border transmission capacity, increase of the electricity transit within the systems in the region, and alignment of the electricity price differences in the region and settlement of the difference of electricity price in the region, as well as connection with neighboring electricity markets. In addition to these benefits, there are other positive effects such as: increase in the security of supply, reduced investments in production facilities designated for the National System Reserves, regional dispatching and cost-effective production, electricity exchange, as well as power management and control, frequency, and reactive capacity. The project is in its realization phase and is anticipated to be finalized by 2023. The Energy Regulatory Commission, following the adopted Decision on the Annual Report on operations of the ERC in 2020 - 48 -
authorization of basic revenues for 2018, 2019 and 2020, the regulated maximum revenues for 2018, the regulated average tariff and tariffs on calculation elements for 2018 in performing regulated energy activity referring to energy transmission of AD MEPSO Skopje, on June 29th, 2018, has approved the investments by AD MEPSO Skopje, for the next three years within the regulated period, displayed in the Table below. In 2021, the Energy Regulatory Commission, shall determine a basic revenue for the regulated period for 2021, 2022 and 2023for the energy activity of electricity transmission. Table 2.5 Authorized amount of investment of AD MEPSO for the period 2018-2020
AD ESM Skopje 2018 2019 2020 MKD 2.223.857.319 2.416.521.322 1.491.975.432
2.6.3.3 ELECTRICITY TRANSMISSION SYSTEM LOSSES The losses of the Electricity Transmission Network are estimated as difference between the quantity input of the Electricity Transmission Network (Grid), acquired by domestic electricity production from power plants connected to the electricity transmission system, and electricity import and the overall electricity quantity output of the Electricity Transmission Network. During the period from 2010 to 2020, there is a tendency to reduce electricity losses in the Electricity Transmission Network (Grid), expressed as electricity quantity required to cover losses as well as in the percentage of losses. In 2020, the quantity of electricity to cover losses of the Electricity Transmission Network, is 124 GWh, indicating increase by 3,33 % since 2019, when the quantity of electricity for covering losses was 120 GWh. The increase of losses in the electricity transmission system is due to increased electricity input in the Electricity Transmission System that influences system losses. The Electricity Transmission System Operator is motivated to reduce losses on electricity in the electricity transmission system considering that the Energy Regulatory Commission approves only certain costs on approved electricity losses in accordance with the Plan on Reduction of Electricity Losses in the transmission network approved by the Energy Regulatory Commission. The Chart below shows an overview of the net consumption and the electricity losses by the Electricity Transmission Network, and the Electricity Distribution Network in the last 10 years.
8.000 7.614 7.220 6.989 6.960 6.853 6.455 6408 6395 6504 6486 6.000
4,000 GWh 2,000 1.186 1.107 990 914 903 890 896 871 859 859 201 287 159 152 131 116 111 125 120 124 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Net consumption ETSO Losses DSO Losses Chart 2.12 Net consumption and network (grid) losses in the period from 2011 to 2020 (in GWh) The Electricity Transmission System Operator is under obligation to purchase electricity to cover the losses of the Electricity Transmission Network, according to market terms in transparent and non-discriminatory manner. The Electricity Transmission System Operator shall purchase electricity pursuant to the Rules on Electricity Purchase to cover
Annual Report on operations of the ERC in 2020 - 49 -
losses of the Electricity Transmission Network, approved by the Energy Regulatory Commission. In 2020, AD MEPSO Skopje has purchased electricity to cover the losses of the Electricity Transmission Network from traders with electricity in a transparent procedure. The Table below displays data on electricity purchase for 2020, from electricity traders and suppliers including purchase prices. Table 2.6 Purchase of electricity to cover losses of the Electricity Transmission Network (Grid) in 2020 (in MWh and MKD / MWh)
MWh MKD/ MWh Total/ Average 116.615,0 3.694,40 Energy Wind 75.723,0 3.611,79 GEN-I Prodazba 16.394,0 3.993,26 Danske Komoditis 14.634,0 3.773,09 EDS 5.609,0 3.921,90 Alpik 4.255,0 3.442,47
The Energy Regulatory Commission in the approval of the maximum allowed revenue, the average tariff, and the tariffs on calculation elements for performing regulated energy activity referring to electricity transmission, shall determine the costs to cover losses of the Electricity Transmission Network (Grid) by authorizing respective quantity of electricity for covering the losses. Quantities of electricity to cover limited recognized electricity losses in the transmission network shall be recognized in percentage that is determined in the Plan on Electricity Loss Reduction in the Transmission Network approved by the Energy Regulatory Commission. The percentage refers to the overall quantity input of electricity in the Electricity Transmission Network from domestic production and by import, as well as the quantities of energy transiting through the transmission network (grid). In the Decision on Maximum Allowed Revenue, Average Tariff, and Calculation Elements Tariffs for performing the regulated energy activity of electricity transmission, the Energy Regulatory Commission has determined the percentage of accepted losses which for 2020 shall be 1,60 % reduced by 10,61 % compared t0 2019, when it was 1,79 %. The total electricity procurement costs for covering the losses in the electricity transmission network, which is authorized by the Energy Regulatory Commission shall be 442.099.192 MKD for 2020.
2.6.4 ELECTRICITY DISTRIBUTION SYSTEM The Electricity Distribution Network in the Republic of North Macedonia refers to the voltage levels, such as: 110 kV, 35 kV, 20 kV, 10 kV, 6 kV and 0,4 kV. The overall length of the Electricity Distribution Network is 28.985 km, whereby, 99,41 % or 28.815 km, are governed by Elektrodistribucija. The remaining 170 km are owned and governed by AD ESM Skopje. During 2020, Elektrodistribucija has built 22 new Transformer stations 10 (20) / 0,4 kV / kV. The grid with 35 kV shows increase in length by 51 km, of which 44 km belong to the overhead line and 7 km are cable line. The 10 (20) kV network signifies construction of new lines with 117 km length of which 5 km are overhead line and 112 km are cable line. The network of 0,4 kV voltage level shows enlargement in length by new 229 km, whereas 97 km are overhead line and 132 km refer to cable line. Table 2.7 shows the length of the electricity distribution network according to voltage level of Elektrodistribucija in 2020.
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In the overall length of the electricity distribution grid of Elektrodistribucija, the overhead line participates in the medium-voltage network (grid) and low-voltage network with only 73,82 % and the participation in the cable line is 26,18% (Table 2.8). The percentage of the cable line in medium-voltage and low-voltage network is significantly lower, meaning that Elektrodistribucija must increase the percentage representation of the cable line, to increase the reliability in the electricity distribution network. Table 2.7 Length of the electricity distribution network according to voltage level of Elektrodistribucija in 2020
110 kV 35 kV 35 kV 20(10) kV 20(10) kV 0.4 kV 0.4 kV Voltage overhead overhead cable overhead cable overhead Cable line level (kV) line line line line line line length 188 949 157 7,575 3,138 12.409 4.400 (km)
Table 2.8 Participation of the overhead and cable line according to voltage level of Elektrodistribucija in 2020
110 kV 35 kV 35 kV 20(10) kV 20(10) kV 0.4 kV 0.4 kV Voltage overhead overhead cable overhead cable overhead Cable line level (kV) line line line line line line % 100 85.80 14.20 70.72 29.28 73.82 26.18 The data on the number of Transformer stations, and the number of consumers connected to the Electricity Distribution Network (Grid) of Elektrodistribucija is enclosed in Tables 2.9 – 2.11. Table 2.9 Number of Transformer stations of Elektrodistribucija in 2020
110/хх kV/kV Voltage level Joint ownership 110/хх kV/kV 35/(20)/10 kV/kV 10/0,4 kV/kV (kV) with MEPSO
Number of TS 41 13 76 7.356
The Electricity Distribution Network of Elektrodistribucija accounts in overall 876.397 connection points, whereby, 875.253 connection points are with low voltage, and the remaining of 1.144 refer to connection points with medium voltage. This number includes estimated metering points with active meters; however, no electricity consumption is recorded. In the overall number of 876.410 consumers, 774.935 are households, while 101.475 are other consumers. Table 2.10 Number of connection points of the Electricity Distribution Network of Elektrodistribucija in 2020
Connections MV1 MV2 LV1.1 LV1.2 LV.2 Total category Total 82 1,067 6,523 3,221 865,509 876,397
Table 2.11 Number of consumers in the Electricity Distribution Network of Elektrodistribucija in 2020
Large Small Consumers Households Total consumers consumers Total 23.652 77,823 774,935 876,410 Tariff 0 70,662 774,935 845,597 Qualified 23,652 7,162 0 30,813
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AD ESM Skopje fails to record changes in the length of the network, and the same status is with the number of transformer stations, i.e., there is absence of any construction of new power facilities within this Electricity Distribution Network. The mentioned is due to the performance of the energy activity, i.e., the distribution of electricity by AD ESM Skopje is performed on strictly defined territory of the industrial facility. Further enclosed is the data on the number of transformer stations, the length of the Electricity Distribution Network, as well as the number of consumers connected to the Electricity Distribution Network of AD ESM Skopje.
Table 2.12 Number of Transformer stations of AD ESM in 2020
Transformation of 110/35/6 110/6 35/10/0.4 10/0.4 6/0.4 voltage levels (kV) Number of TS 1 1 1 1 4
Table 2.13 Length of the electricity distribution network according to voltage level of AD ESM Skopje in 2020
Voltage level (kV) 110 35 10 6 0.4 Length (km) 20 10 0.1 90 50
Table 2.14 Number of consumers connected to the Electricity Distribution Network of AD ESM Skopje in 2020
Total 110 kV 35 kV 10 kV 6 kV 0.4 kV 63 2 2 0 11 48
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2.6.4.1 ELECTRIICTY DISTRIBUTION NETWORK MAINTENANCE PLANS In accordance with the Law on Energy*, the electricity distribution system operators shall be obliged, on annual basis, to deliver plans on the maintenance of the electricity distribution systems. On May 27th, 2020, Elektrodistribucija has delivered to the Energy Regulatory Commission, the Plan on the Maintenance of the Electricity Transmission Network for 2020, which was approved by the Energy Regulatory Commission on July 20th, 2020. In the plan, Elektrodistribucija has displayed the activities on the maintenance of the high voltage and medium voltage network (transformer stations HV/MV, equipment in power stations, high voltage and medium voltage lines) maintenance of low voltage network (maintenance of transformer stations MV/LV, low voltage lines) related to inspections of the equipment divided per voltage levels and per Customer Energy Centers (KEC), identified deficiencies, formation of priority lists for deficiency elimination, as well as equipment replacement, summary plan, and dynamics of deficiency realization, equipment replacement and activities related to the inspection of the previous equipment and so on. In May 29th, 2020, AD ESM Skopje has delivered for approval by the Energy Regulatory Commission, the Plan on Electricity Distribution Network Maintenance for 2020. The Plan encloses the activities on equipment maintenance (switches) in 110kV, 35kV and 6kV voltage level, as well as the operative maintenance of the network in 0,4kV voltage level. Activities related to purchase, dismantling and installation of six newly combined current-voltage metering transformers. The Energy Regulatory Commission has approved the Plan on the electricity Distribution Network Maintenance of AD ESM for 2020 on July 23rd, 2020.
2.6.4.2 DEVELOPMENT AND INVESTMENT PLAN The Electricity Distribution System Operator, in accordance with the Law on Energy, shall be obliged, on annual basis, to develop a Plan on the Development of the Electricity Distribution System for the next five years, and to submit to the Energy Regulatory Commission for approval. The largest part of the investments shall refer to the construction and reconstruction of the electricity distribution network, new metering devices, to projects on the dislocation of the metering equipment in regions with large electricity losses, projects on new customers, etc. The Energy Regulatory Commission, following the adopted Decision on the authorization of basic revenues for 2018, 2019 and 2020, the maximum allowed revenue for 2018, the regulated average tariff and tariffs on calculation elements for 2018 in performing regulated energy activity referring to energy distribution of Elektrodistribucija, on June 29th, 2020 has approved the investments of Elektrodistribucija for the three years of the regulated period (Table 2.15) as well as for AD ESM (Table 2.16). In 2021, the Energy Regulatory Commission shall determine a basic revenue for the activity referring to electricity distribution for the following regulated period of three years (2021, 2022 and 2023).
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Table 2.15 Authorized amount of investment of Elektrodistribucija for the period 2018-2020
Elektrodistribucija 2018 2019 2020 Denars 2,159,308,155 2,246,772,726 2,221,392,749
Table 2.16 Authorized amount of investment of AD ESM Skopje for the period 2018- 2020
AD ESM Skopje 2018 2019 2020 Denars 56,128,022 58,718,482 60,647,073
2.6.4.3 ELECTRICITY DISTRIBUTION SYSTEM LOSSES The Electricity Distribution Network Losses are calculated as a difference between the total electricity input in the Electricity Distribution Network by the Electricity Transmission System and the producers connected to the Electricity Distribution Network and the overall electricity output from the Electricity Distribution Network. The percentage of electricity losses in the electricity transmission network and in the electricity distribution network, in the last 10 years are displayed in Chart 2.13. 20 18,1 17,4 16,42 15,5 14,77 14,68 14,74 14,2 13,4 13,4 15
% 10
5 2.2 5 2 2.2 1.9 9 1.9 4 1.7 4 1.5 5 1.4 9 1.8 0 1.2 1.2 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
ETSO Losses (%) DSO Losses (%)
Chart 2.13 Losses in the electricity transmission network and in the electricity distribution network in the period from 2011 to 2020 (in %) The Chart clearly expresses that electricity losses in the Electricity Distribution Network, within the period of the past years have significantly reduced, starting with 18,1 % in 2011 and reaching 13,40% in 2020. The quantities of electricity losses in the Electricity Distribution System, in the period of 10 years, register reduction by 25,97 %. The mentioned is since the Electricity Distribution System Operator, Elektrodistribucija, has firmly undertaken measures to reduce losses, foremost by projects on group dislocation of metering devices, individual dislocation of metering devices, installation of meters that enable remote reading and disconnection, increased technical control of metering devices, revealing manipulation of meters, etc.
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The electricity losses of AD ESM Electricity Distribution System Skopje are insignificant in relation to the electricity losses of Elektrodistribucija and are in the limits from 1 to 2 GWh on annual level. The Electricity Distribution System Operator is under obligation to purchase electricity to cover the losses of the Electricity Distribution Network, according to market terms in transparent and non-discriminatory manner. The Electricity Distribution System Operator shall purchase electricity pursuant to the Rules on Electricity Purchase to cover losses of the Electricity Distribution Network, approved by the Energy Regulatory Commission. In 2020, Elektrodistribucija has purchased electricity to cover the losses of the Electricity Distribution Network from electricity traders and suppliers in a transparent procedure. The Table below displays the data on electricity purchase for 2020 with purchase prices enclosed. Table 2.17 Purchase of electricity to cover losses of the Electricity Distribution Network in 2020 (in MWh and MKD / MWh) MWh MKD/ MWh Total/ Average 857,472.6 3,329.8 GEN-I Prodazba 243,474.0 3,429.7 EFT SKOPJE 207,840.0 3,659.6 DANSKE KOMODITIS 80,095.0 3,557.0 FUTURE ENERGY 67,927.0 3,281.9 HCE MAK ENERGY 58,390.0 3,711.7 INTERENERGO - SKOPJE 50,840.0 2,857.5 GREEN ENERGY 40,320.0 3,743.0 ALPIK SKOPJE 36,720.0 2,903.8 ENERGY WIND 29,565.0 3,007.7 AD MEPSO 27,781.6 0 ELEM TRADE 7,320.0 2,710.0 EVN TRADE 3.720.0 2,726.9 TETRA DOOEL 3,480.0 3,805.8 The Energy Regulatory Commission determines the electricity procurement cost for covering the approved losses in the distribution system by approving adequate electricity quantity. Electricity quantities for covering the authorized electricity losses in the distribution network shall be accepted in percentage that is determined in the Plan on Electricity Loss Reduction in the Distribution Network approved by the Energy Regulatory Commission. The percentage refers to the overall input quantity of electricity into the distribution system. The Energy Regulatory Commission, for the year 2020, has established the percentage of allowed losses to be 12,7 %, based on the Plan on reducing electricity losses of Elektrodistribucija Electricity Distribution Network, for the period 2017-2020, and was approved by the Energy Regulatory Commission on June 23rd, 2017. In accordance with the Decision on Maximum Allowed Revenue, Average Tariff, and Tariffs for Calculation Elements for performing the regulated energy activity referring to electricity distribution, the Energy Regulatory Commission has approved the amount of 2.820.752.661 MKD for covering the losses in the electricity distribution network for 2020.
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2.6.4.4 CHANGE OF CONNECTIONS CATEGORY In 2020, the Energy Regulatory Commission, has issued 64 Decisions on approval of Requests for change of connections category (Table 2.19) while in 2019 there were 61 decisions on approval of the Request for change of connection category. The Energy Regulatory Commission has acted upon the Requests for approval of the change of connection category, submitted by Elektrodistribucija. In 2020, the number of submitted Requests for change of the connection category is increased by 3,12 % compared to 2019. Elektrodistribucija submits Requests for approval of change of connection category due to several reasons, such as planed dislocations by the Electricity Distribution System Operator, Requests by consumers, and due to the wrongful established status in the Register of the Electricity Distribution System. Table 2.18 Review of Requests for change of connections category in 2020 Number of LV2 во LV1.2 LV1.2 во LV2 LV2 во MV2 LV2 во LV1.1 LV1.2 во MV2 MV2 во MV2 overall Requested/ Requested/ Requested/ Requested/ Requested/ Requested/ submitted Approved Approved Approved Approved Approved Approved requests 64 40/40 1/1 0/0 20/20 0/0 3/3
The Table clearly displays data on the largest number of Decisions on approval of change of connection category moving from LV2 to LV1.2. The mentioned Requests for the switch are due to the planned dislocations by the electricity distribution system operator, requests for meter dislocation by users, requests by users, after conducting technical control by the electricity distribution system operator, connection reconstruction and so on. There is a significant number of changes of connection category moving from LV2 to LV1.1. The mentioned is since municipalities, whereby the public lightning is under jurisdiction, have been continuously preparing for the selection of electricity supplier on the free market, and was required accurate identification of the metering points with the connection category.
2.6.5 QUALITY OF ELECTRICITY SUPPLY The quality of electricity supply is assessed by the quality of voltage, continuity of supply, and the commercial quality. This part of the Report reveals the status of continuity of electricity supply, i.e., the planned and unplanned interruptions, the duration, and the voltage level at which they occurred. The data, regarding the commercial quality is displayed in the part of Legal Operations, in the chapter referring to Consumer Protection. The quality of voltage in the Electricity Distribution Networks should be following the Standard MKS 50160:2012, as established by the Grid Code for Electricity Distribution. The quality of the voltage in the Electricity Transmission Grid is established by the Grid Code for Electricity Transmission. The Energy Regulatory Commission monitors the quality of electricity through the Market Monitoring System, whereas, the Electricity Distribution System Operators are obliged to submit monthly reports on the levels of voltage interruptions, according to category of planned and unplanned interruptions, rapid and slow voltage deviations, asymmetric voltage, flickers, voltage distortions, as well as the parameters on permanent supply SAIDI (System Average Interruption Duration Index – Index of average timeframe interruption duration in the system per consumer), and SAIFI (System Average Interruption Frequency Index – Index of the average number of interruptions in the system per Annual Report on operations of the ERC in 2020 - 56 -
consumer). In 2020, the submission of data was only on level voltage interruptions, and the planned and unplanned interruptions according to category. In 2020, Elektrodistribucija, for the first time, has submitted the calculated parameters regarding the continuity of electricity supply, which are enclosed cumulatively but there is no distinction of parameters on continuity regarding planned and unplanned interruptions. In the following years, one of the challenges of the Energy Regulatory Commission shall be the collection of data regarding to the parameters of continuity in electricity supply, analysis of the accuracy of historical data and establishment of target levels. After establishing target levels, fines for the electricity distribution system operators shall be established if they cross the provided target levels of the values of the indicators of supply continuity. In 2020, the Electricity Transmission System has suffered 679 interruptions in an overall timeframe of 10.420 hours, whereby, 392 interruptions referred to planned interruptions due to regular inspections or maintenance, while the remaining 287 interruptions were due to defects or accidents within the Electricity Transmission System (Table 2.19). In 2019, the total number of interruptions was 637 of which 392 were planned disconnections and 221 were unplanned interruptions. The overall duration of interruptions in 2019 was 9.259 hours, which means that in 2020 the overall duration of interruptions in the electricity transmission system has increased by 1.161 hours, i.e., by 12,5%, while the number of interruptions in 2020 has increased by 6,6,% compared to 2019. Table 2.19 Number and duration of planned and unplanned interruptions in the Electricity transmission system in the period from 2015 to 2020 Transmissio Transmissio Transformer Type of n lines - n lines – Year. Indicator 400 kV 100 kV stations Total interruptions junction metering 400/100 kV field field Number 53 551 0 0 37 641 Planned (min) 33.495 158.859 0 0 29.832 222.186 2015 Number 22 298 0 0 5 325 Unplanned (min) 405 26.773 0 0 452 27.630 Number 53 383 0 0 27 463 Planned (min) 51.659 116.950 0 0 8.099 176.708 2016 Number 22 275 0 0 6 303 Unplanned (min) 385 7.874 0 0 120 8.379 Number 50 404 0 0 20 474 Planned (min) 32.790 244.073 0 0 9.809 286.672 2017 Number 19 229 0 0 3 251 Unplanned (min) 156 3.428 0 0 56 3.640 Number 56 426 0 0 23 505 Planned (min) 39.929 274.251 0 0 878 315.058 2018 Number 15 283 0 0 6 304 Unplanned (min) 242 20.048 0 0 144 20.434 Number 37 364 0 0 15 416 Planned (min) 154.380 379.368 0 0 5.156 538.904 2019 Number 15 203 0 0 3 221 Unplanned (min) 1.469 15.077 0 0 98 16.644 Number 39 328 0 0 24 392 Planned (min) 56.774 476.909 0 0 83.903 617.689 2020 Number 12 271 0 0 4 287 Unplanned (min) 228 7,231 0 0 85 7.544
In 2020, the overall number of interruptions within the Electricity Distribution System of Elektrodistribucija, is 38.348, in a timeframe of 128.564 hours (Table 2.20). In the overall number of interruptions, 3.063 hours fall in the category of Planned interruptions,
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and are due to the regular inspections, maintenance, and additional connection of new users to the Electricity Distribution Grid, while 35.285 interruptions were due to occurred defects and other circumstances in the operation of the Electricity Distribution Grid. In 2019, the number of interruptions was 37.307, of which 3.507 were planned interruptions, and the number of unplanned interruptions was 33.800. The overall duration of interruptions was 126.442 hours. Compared to 2019, the number of interruptions has increased by 1.041 interruptions, i.e., by 2,8%, hence the overall duration has increased by 2.122 hours, or by 127.309 min., i.e., by 1,7 %. The reasons for the increase of interruptions are overloads in the electricity distribution network, weather disasters, partial obsolescence of certain parts of the equipment in the electricity distribution network, difficulties in repairing defects because of Covid - 19 pandemics, and so on. It must be taken into consideration that the teams of AD MEPSO Skopje and Elektrodistribucija were reduced more than to the optimal number because of operations in shifts and rotations by the staff in order to respect the anti -Covid-19 measures and to protect public health. Hence, the duration of defect repair, i.e., the overall duration of defects has increased. The average duration of interruptions for 2020 is 201 minutes. Тable 2.20 Number and duration of planned and unplanned interruptions in the electricity distribution system in the period from 2015 to 2020 Type of Indicator Total Year interruptions 35 kV 10(20) kV 0,4 kV Number 94 3.233 0 3.327 Planned (min) 16.538 672.810 0 689.348 2015 Number 638 11.071 17.549 29.258 Unplanned (min) 36.140 1.773.743 2.192.319 4.002.203 Number 69 3.240 0 3.309 Planned (min) 10.129 685.997 0 696.126 2016 Number 547 10.458 20.855 31.860 Unplanned (min) 36.393 1.187.949 2.946.646 4.170.988 Number 98 3.025 NA 3.123 Planned (min) 16.130 658.039 NA 674.169 2017 Number 502 9.939 23.344 33.785 Unplanned (min) 25.275 1.193.693 4.308.453 5.527.421 Number 106 3.225 NA 3.331 Planned (min) 24.187 682.188 NA 706.375 2018 Number 589 10.577 26.697 37.863 Unplanned (min) 54.623 1.532.722 5.051.916 6.639.261 Number 112 3.395 NA 3.507
Planned (min) 18.323 621.899 NA 640.222 2019 Number 471 10.011 23.318 33.800
Unplanned (min) 24.644 1.105.335 5.816.320 6.946.299 Number 92 2.971 NA 3.063 Planned 2020 (min) 10.767 639.850 NA 650.617 Unplanned Number 490 9.542 25.253 35.285
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(min) 19.033 1.252.818 5.791.362 7.063.213
The values of the indicators regarding the continuity in supply are enclosed in the table below. Table 2.21 Indicators on continuity in supply of the electricity distribution network of Elektrodistribucija for 2020
Type of indicator 35 kV 10 kV Total/ Average SAIDI 56 814 870 SAIFI 2 18 7
2.6.6 NETWORK SERVICE CHARGES Every year, the Energy Regulatory Commission adopts Decisions on Determination of Maximum Allowed Revenue, the Regulated Average Tariff and Tariffs on Calculation of Elements for regulated energy activity performance – electricity transmission, electricity distribution and electricity market The decisions are adopted based on the provisions of the Rulebook on the Manner and Conditions for Determining Maximum Allowed Revenue and Regulated Average Tariffs of Electricity Transmission, Electricity Market Organization and Management and Electricity Distribution. Additionally, taken into consideration are the Tariff Systems for electricity transmission and the electricity market, i.e., the Tariff System for electricity distribution to consumers connected to the Electricity Distribution System of the Elektrodistribucija DOOEL Skopje, and the Tariff System on electricity distribution to consumers connected to the Electricity Distribution System of the AD ESM Skopje. The charges for the electricity TSO and DSOs services are set by the Energy Regulatory Commission on annual basis, referring to undertaken procedures on approval of maximum allowed revenue, the average tariff, and tariffs of calculation elements for regulated energy activity performance referring to transmission of electricity, i.e., for regulated activity performance referring to the distribution of electricity. Decisions adopted by the Energy Regulatory Commission shall apply from July 1st, of the current year, because the electricity transmission system operators and the electricity distribution system operators have requested an additional deadline for submitting additional data that are necessary for the calculation of the regulated average tariff for transmission and distribution, hence the decisions for 2020 were applied since August 1st, 2020. The latest three-year regulated period for regulated activity performance referring to transmission of electricity, and the regulated activity referring to distribution of electricity, relates to the years of 2018, 2019 and 2020. The regulated basic revenue for the mentioned regulated period is determined for each year individually, including determination of operational expenses, depreciation, and the return on regulated assets. In 2021, a new three-year regulated period shall be determined (2021, 2022 and 2023) for electricity transmission, distribution, and electricity market. When adopting the decisions, the Energy Regulatory Commission establishes the maximum allowed revenue, whereby, along with the basic revenue, also are included the expenses on electricity purchase to cover losses, liquidity assets, transferred costs, and the factor of correction on the difference of actual and planned costs. The tariffs for the calculation of elements based on which AD MEPSO Skopje, as a performer of the energy activity of electricity transmission, invoices the fee for use of the electricity transmission system, consist of maximum active power, active electricity, and Annual Report on operations of the ERC in 2020 - 59 -
reactive electricity. The fee for usage of the Electricity Transmission System is paid by all users of the Electricity Transmission System: consumers directly connected to the Electricity Transmission System, which are independent in the Electricity Market, electricity producers connected to the Electricity Transmission System for electricity for their own needs, electricity suppliers, electricity traders and Electricity Distribution System Operators, and by suppliers of electricity to consumers connected to the Electricity Distribution Systems. The amount of regulated average tariffs on electricity transmission in the last five years is enclosed in Table 2.22 and Chart 2.14.
Table 2.22 Average tariffs of electricity transmission in the period from 2016 to 2020 (in MKD/kWh %) Year 2016 2017 2018 2019 2020 5/4 (%) 5/3 (%) 1 2 3 4 5 6 7 Average tariff of 0.2315 0.2169 0.2052 0.1757 0.1952 +11.09 -4.87 electricity transmission (MKD/ kWh)
0,25
0,2
0,15 kWh
ден./ 0,1
0,05
0 2016 2017 2018 2019 2020
Chart 2.14 Average tariffs of electricity transmission in the period from 2016 to 2020 (in MKD/kWh %)
The tariffs of calculation elements per customer category, based on which the electricity DSO Elektrodistribucija, is invoicing the charges for using the electricity distribution system include capacity, active electricity, and reactive electricity. The charges for using the electricity distribution system are paid by the consumers that are connected to the electricity distribution system, including the charge for using the electricity transmission system and the charge for using the electricity market. The electricity DSOs are entitled to conclude a Contract for authorizing suppliers or traders to collect the charges accrued to consumers for using of the electricity distribution system. The regulated average tariffs for electricity distribution with included average tariff for electricity transmission in the past five years, are presented in the Table and the Chart below.
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Table 2.23 Average tariffs of electricity distribution in the period from 2016 to 2020 of Elektrodistribucija (in MKD/kWh and %) Year 2016 2017 2018 2019 2020 5/4 (%) 5/3 (%) 1 2 3 4 5 6 7 Average tariff of electricity 1,4589 1,3729 1,4084 1,4963 1,5393 +2,87 +9,29 distribution (MKD/kWh)
1.6
1,55
1.5
1.45
1.4 MKD/kW h
1.35
1.3
1.25 2016 2017 2018 2019 2020
Chart 2.15 Average tariffs of electricity distribution in the period from 2016 to 2020 of Elektrodistribucija (in MKD/kWh)
The amount of regulated average tariffs for electricity distribution of AD ESM Skopje, with included average tariff for electricity transmission in the past five years, is presented in the Table and the Chart below.
Table 2.24 Average tariffs of electricity transmission in the period from 2016- 2020 of AD ESM Skopje (in MKD/kWh and %)
Year 2016 2017 2018 2019 2020 5/4 (%) 5/3 (%) 1 2 3 4 5 6 7 Average tariff of 0.3331 0.3332 0.2258 0.1943 0.1895 -2.47 -16.07 electricity distribution (MKD/kWh)
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0.35 0.3 0.25 0.2
0.15 MKD/kW h 0.1 0.05 0 2016 2017 2018 2019 2020
Chart 2.16 Average tariffs of electricity distribution in the period from 2016 to 2020 of AD ESM (in MKD/kWh)
2.7 ELECTRICITY MARKET In 2020, the wholesale and retail electricity market in the Republic of North Macedonia has continued to develop and to improve customer services. One of the most significant reforms was the full functionality of the balance market where system services are procured in a transparent and competitive basis, hence possibilities for forming a transparent price for the calculation of deviations were created. One of the most significant trends in 2020 was the increased number of traders/suppliers that have purchased electricity from domestic producers, compared to the previous two years. On the other hand, the number of domestic producers that are active in the market on bilateral agreements has increased by 39 in 2020. The gross-consumption in 2020 has recorded decrease by 0,33 % in relation to 2019, whereas the net-consumption in 2020 compared to 2019, has recorded decrease by 0,44 %. The overall percentage of the electricity gross-consumption, provided by the open electricity market in 2020, amounts with 52,24 %. The mentioned share compared to 2019 has recorded an increase, when 49,13 % of the electricity requirements were provided on the open market. In 2020, the number of the completed procedures on Supplier Switch was 16.200, indicating an increase by 124,2 % compared to 2019, when the number of completed procedures on electricity Supplier Switch was 7.231. In 2020, the regulated supplier (EVN Makedonija AD Skopje and EVN HOME DOO Skopje) has shown permanent reduction in the overall sale of electricity, which is in correlation with the process of full liberalization of the electricity market. In addition, the average purchase price on electricity by the regulated supplier in 2020 is by 0.39 % lower than the average price in 2019.
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2.7.1 ELECTRICITY MARKET OPERATOR Since October 1st, 2019, MEMO DOOEL Skopje, performs the energy activity referring to the electricity market organization and management, based on the license issued by the Energy Regulatory Commission. Previously, this energy activity was performed by the electricity transmission system operator AD MEPSO Skopje. On annual level, The Energy Regulatory Commission, approves the maximum allowed revenue and the regulated average tariff for regulated energy activity performance referring to organization and management of the Electricity Market. The Table below displays the usage fees for the electricity market in the last five years. Table 2.25 Usage fees for the electricity market in the period from 2015 to 2020 (in MKD per kWh)
2015 2016 2017 2018 2019 2020
0.0150 0.0089 0.0018 0.0018 0.0049 0.0081
The usage fee for the electricity market on behalf of consumers in the Republic of North Macedonia, is paid by the suppliers or traders under concluded contract on supply, i.e., sale of electricity, as well as consumers, which in accordance with the Rules on Electricity Market, are registered to participate on the Electricity Market. The usage fees for the Electricity Market are paid by both, the Electricity Transmission System Operator, and the Electricity Distribution System Operators in purchasing electricity to cover losses.
2.7.2 ALLOCATING CROSS-BORDER CAPACITIES One of the obligations of AD MEPSO Skopje, the electricity transmission system, is to allocate cross-border transmission capacities in a transparent, non-discriminatory, and market-oriented manner, according to which all parties shall have equal access. AD MEPSO Skopje, allocates cross-border transmission capacities in accordance with the Rules on Allocation of Cross-Border Transmission Capacities (“Official Gazette of the Republic of North Macedonia'’ no. 228/19 and '’Official Gazette of the Republic of North Macedonia'’ no. 294/2020). The Energy Regulatory Commission approves the Rules before they enter into force. In accordance with these Rules, cross-border capacities can be allocated via coordinated auction, joint auction with neighboring electricity transmission system operators and one share (50%) of the available cross-border transmission capacity can be allocated unilaterally. In the border with Greece and in the border with Kosovo, AD MEPSO Skopje conducts coordinated auction through the Coordinated Auction Office in Southeast Europe in Podgorica, Montenegro. In the border with Bulgaria and Serbia, joint auctions are performed in an annual, monthly, daily, and intra-day level. AD MEPSO Skopje charges cross-border capacities only in the case when congestions occur. The revenues that derive from congestions, as enclosed in the table below, are considered as a revenue when determining the maximum allowed revenue and tariff for performing the activity of electricity transmission, because the Energy Regulatory Commission accepts the costs for the construction of new interconnection transmission lines and the maintenance of the existing ones, during the determination of the basic revenue.
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Table 2.26 Revenues (in Euro) that derive from congestions of cross-border capacities for 2018, 2019 and 2020
Type of Year BGMK GRMK KSMK MKBG MKGR MKKS MKRS RSMK Total Auction Total 5,408,656 1,121,175 0 57,748 11,738,481 0 2,335,514 1,472,003 22,133,577 Annual 974,280 216,804 0 42,360 3,790,884 0 262,800 459,899 5,747,027 2018 Monthly 4,398,390 642,258 0 11,040 5,568,075 0 1,486,315 682,870 12,788,948 Daily 35,986 262,113 4,348 2,379,522 0 586,399 329,234 3,597,602 Total 4,242,040 1,290,044 0 34,675 12,994,310 0 973,472 1,806,734 21,341,275 Annual 3,164,600 477,420 0 0 3,114,180 0 350,400 306,600 7,413,200 2019 Monthly 963,860 633,788 0 26,587 8,376,422 0 456,552 1,124,528 11,581,737 Daily 113,580 178,836 0 8,088 1,503,708 0 166,520 375,606 2,346,338 Total 997,434 450,581 352 129,318 6,366,419 90,808 429,992 2,895,550 11,360,454 Annual 254,875 162,504 0 42,480 2,415,600 0 175,680 439,200 3,490,339 2020 Monthly 610,890 109,241 0 56,324 3,923,609 0 137,897 1,986,000 6,823,961 Daily 131,669 178,836 352 30,514 27,210 90,808 116,415 470,350 1,046,154 The data from Table 2.26 confirm that the revenues of the electricity transmission system operator, are reduced in the period from 2018 to 2020 by 46,70 % in 2020 in relation to 2019, i.e., by 48,70 % in relation to 2018. In numbers, the reduction in 2020, compared to 2019 is almost 10 million euro, i.e., almost 11 million euros compared to 2018. The increase can be noted in the MKBG border and RSMK border. This kind of revenue reduction, even though it is significant, shall not be reviewed as an exception taking into consideration that there is a tendency to reduce congestions in the cross-border transmission capacities through different regulatory mechanisms, through improvement of processes and procedures that are conducted by electricity transmission system operators, through transparent calculation of the net-transmission capacity, efficient capacity usage and so on. At the same time, it shall be considered that electricity market operators, that participate in auctions for the allocation of cross-border transmission capacities, optimize its need for cross-border transmission capacities, as well as the adequate offer, based on experience and by following new market trends. Nevertheless, it must be considered that 2020 was a specific year because of Covid- 19 pandemics, and specific conclusions shall be made when the situation with the pandemics stabilizes.
2.7.3 WHOLESALE MARKET
The Electricity Wholesale Market includes the Market on Bilateral Agreement, the organized market, day ahead and an intra-day market, and balancing market. In 2020, the Market on Bilateral Agreement has continued its function, while the balancing market started to function on January 1st, 2020, in accordance with the Balancing Rules of the Electricity System. Regarding the organized market (the day-ahead market and the intra-day
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market), in 2020 significant activities for establishing this part of the electricity market were conducted. The Wholesale Electricity Market, since July 1st, 2019, is fully liberalized, i.e., the suppliers, traders, and producers of electricity without prior consents, i.e., approvals by the Energy Regulatory Commission, are entitled to conclude mutual agreements on electricity purchase and sale. This is due to the dissolution of the Energy Regulatory Commission in regulating the electricity production price of the largest electricity producer in the Republic of North Macedonia, ASD ELEM (now AD ESM) since July 1st, 2019. EVN HOME DOO Skopje, participates in the wholesale electricity market, performing the activity of electricity supply, to whom obligations for providing the universal service are prescribed in the license. EVN HOME DOO Skopje is a universal electricity supplier and electricity supplier in last resort.
2.7.3.1 MARKET ON BILATERAL AGREEMENT
In 2020, there were 201 active participants on the electricity Bilateral Agreement Market, whereby 35 appeared as traders / suppliers, and 67 as electricity producers (Table 2.27).
Table 2.27 Number of active domestic producers and traders / suppliers on the Bilateral Agreement Market in 2018, 2019, and 2020
YEARS 2018 2019 2020 TOTAL ACTIVE DOMESTIC PRODUCERS 10 28 67 TOTAL ACTIVE TRADERS/SUPPLIERS 32 33 35 Traders/suppliers that purchased from domestic producers 13 18 18 Traders/suppliers that purchased from other 25 24 29 traders/suppliers Traders/suppliers that imported 22 20 22 Traders/suppliers that purchased from ETSO for 8 compensation Traders/suppliers selling to other traders/suppliers 25 21 25 Traders/suppliers selling to ETSO for 6 compensation Traders/suppliers exporting 15 14 19 Traders/suppliers transiting 22 19 22
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The review in Table 2.27, shows that, the number of domestic producers active on the Market on Bilateral Agreement, in 2020, has increased by 39 new market participants. 2020 is characterized with the initiation of the electricity purchase and sale for compensation between the electricity transmission system operator and several active traders and/or suppliers.
2.7.3.2 DOMESTIC PRODUCERS The share of electricity sold by domestic electricity producers in the electricity market on bilateral agreements in 2020 is enclosed in Chart 2.17:
Other producers 0,19% 8.945 MWh EVN Power Plants 2,67% 124.776 MWh TE-TO AD Skopje 22,98% 1.074.999 MWh ESM AD Skopje 3.469.765 MWh 74,16% 0 1000000 2000000 3000000 4000000 Chart 2.17 Shares of domestic producers on the electricity Bilateral Agreements Market in 2020 (in MWh and %) The above attached review displays that the largest share in the sale on the Market on Bilateral Agreement is by AD ESM Skopje with 74,16 %, followed by TETO AD Skopje with 22,98 %, EVN Elektrani with 2,67 %, and other 64 small-sized producers with only 0,19 % share on the Market on Bilateral Agreement. The achieved sale and the average prices from domestic producers in the electricity bilateral agreement market for 2018, 2019 and 2020 is enclosed in the table below. Table 2.28 Achieved sale and average prices of domestic producers in the Electricity Market on Bilateral Agreement in 2018, 2019 and 2020
Year 2018 2019 2020 MWh MKD/ MWh MWh MKD/ MWh MWh MKD/ MWh Total / Average 1,242,718 3,712.30 1,461,306 3,460.53 4,678,484 2,472.39 The analysis of the data in Table 2.28 indicates that the achieved sale by domestic producers in the electricity Market on Bilateral Agreement is in continuant increase. However, characteristic about the presented data for 2020, is that for the first time, is the inclusion of the total quantity of electricity that is sold to the universal supplier EVN HOME by the largest producer. It is reflected in the average sale prices, hence the average sale price in annual level, for 2020 is by 28,5 % lower, compared to 2019, while, in relation to 2018, the decrease is 33,4 %.
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2.7.3.3 ТRADERS AND SUPPLIERS The overall quantity of electricity traded on the Wholesale Electricity Market in 2020 is 4.255.802 MWh, which is by 53,3 % higher in relation to 2019. The largest share in the traded quantities on the Domestic Market in 2020, are by TE- TO AD Skopje with 30,3 %, followed by EVN Trejding with 19,7 %, and GEN-I Prodazba with 15,9 % (Chart 2.18).
OTHER 8,5% 363.119 MWh
PETROL ENERGETIKA 2,7% 114.245 MWh
ELEM TRADE 3,2% 135.490 MWh
5,5% ALPIK ENERGIJA 233.753 MWh
6,7% ENERGY WIND 284.988 MWh
7,6% HSE MAK ENERGY 322.344 MWh
15,9% GEN-I Prodazba 674.714 MWh
19,7% EVN TRADING 837.830 MWh
30,3% TETO Skopje 1.289.319 MWh
0 200.000 400.000 600.000 800.000 1.000.000 1.200.000 1.400.000 Chart 2.18 Market share of traders / suppliers in the achieved sale in the Electricity Market on Bilateral Agreement within the Electricity Market in 2020 The Tables 2.29 and 2.30 provide an overall review of achieved sale and market shares in trading transactions on the Wholesale Electricity Market in 2020, as well as a review of the achieved sale and average prices by traders / suppliers on the Electricity Market on Bilateral Agreement in 2018, 2019, and 2020.
Table 2.29 Achieved sale and market share of traders / suppliers in the Electricity Market on Bilateral Agreements in 2020
No. trader/supplier MWh % TOTAL 4,255,802 100,00% 1 TETO Skopje 1,289,319 30,30% 2 EVN TRADING 837,830 19,69% 3 GEN-I Prodazba 674,714 15,85%
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4 HCE MAK ENERGY 322,344 7,57% 5 ENERGY WIND 284,988 6,70% 6 ALPIK ENERGIJA 233,753 5,49% 7 ELEM TRADE 135,490 3,18% 8 PETROL ENERGETIKA 114,245 2,68% 9 TERNA ENERGY TRADING 89,915 2,11% 10 EDS 80,710 1,90% 11 EFT 47,238 1,11% 12 ENERGIA GAS AND POWER 27,348 0,64% 13 INTERNERGO 25,879 0,61% 14 DANSKE KOMODITIS 20,810 0,49% 15 U POWER 18,311 0,43% 16 ENEKOD 15,233 0,36% 17 GREEN TRADING 10,090 0,24% 18 SOLARIS TRADE 7,242 0,17% 19 ENERGY ACTIVE 6,622 0,16% 20 ENERGY SUPPLY M 3,663 0,09% 21 AKSPO MK 3,536 0,08% 22 FUTURE ENERGY 2,520 0,06% 23 SOLARPRO HOLDING 1,759 0,04% 24 WATT AND VOLT 1,469 0,03% 25 ELNOR 773 0,02% The average selling price of electricity by traders / suppliers on the Wholesale Electricity Market in 2020, is in the amount of 3.220,1 MKD / MWh, i.e., 52,36 € / MWh, and is by 10,6 % lower than the price in 2019 (3.600,7 MKD / MWh; 58,55 € / MWh), i.e., by 3,8 % lower than the respective price in 2018, in the amount of 3.346,2 MKD / MWh, i.e., 54,41 € / MWh. Table 2.30 . Achieved sale and average prices by traders / suppliers on the Electricity Market on Bilateral Agreement t in 2018, 2019, and 2020
Year 2018 2019 2020 MWh MKD/ MWh MWh MKD/ MWh MWh MKD/ MWh
Total / Average 3,230,316 3,346.2 2,775,653 3,600.7 4,255,802 3,220.1
To see the correlation of trade activities on the Wholesale Electricity Market in the country within the part of imported electricity, Table 2.31 attached below provides a review of the average annual prices on base day-ahead energy, and peak day-ahead energy reached on the Hungarian Power Exchange (HUPX), which is considered to present an exchange stock market for cross-reference of Wholesale Electricity Market movements in the Republic of North Macedonia. The review below indicates that in 2020 the average import price on electricity is by 27 % higher than the day-ahead base trimmed mean price reached on HUPX, while in the two previous years, the average import price was lower compared to the average annual prices on base energy reached on HUPX based on the day-ahead by 8,9 % in 2019, i.e., by 6,1 % in 2018.
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Table 2.31 Review of average HUPX DAM prices on Base and Peak energy, and the average import price on electricity in 2018, 2019, and 2020 (in € / MWh)
2018 2019 2020 Average annual prices €/MWh €/MWh €/MWh HUPX Base Trimmed Mean Price 51.05 50.23 38.84 HUPX Peak Trimmed Mean Price 57.39 56.83 43.25 Import price 47.94 54.70 49.33 On the other hand, the comparison of the average import price with the Day-ahead peak trimmed mean price reached on HUPX, highlights that in 2020 the average import price is by 14,1 % higher than the price on the Hungarian Power Exchange HUPX, while in 2019 and 2018, the import prices were by 16,5 % lower in relation to the Day-ahead Peak Trimmed Mean Price on HUPX (Chart 2.19).
80.00
70.00
60.00
50.00
40.00
EUR/MWh 30.00
20.00
10.00
0.00 1 2 3 4 5 6 7 8 9 10 11 12
Average import price HUPX Base Trimmed Mean Price HUPX Peak Trimmed Mean Price
Chart 2.19 Review of HUPX DAM monthly mean prices for base and peak Trimmed energy and average import electricity prices in 2020 The above review shows that almost during the whole year of 2020, there are differences between average monthly import prices and mean monthly HUPX DAM prices for base and peak trimmed energy. This correlation indicates that the extraordinary circumstances caused by the Covid -19 pandemics has provoked a demand decrease, thus causing stock-exchange day-ahead electricity prices. Nevertheless, it does not influence import prices because of the dominant presence of long-term agreements on electricity purchase from import. The achieved import of electricity from traders/suppliers in 2020 is shown in Chart 2.20.
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11,44% OTHER 372.460 MWh 2,35%
SOLARPRO HOLDING 76.451 MWh
2,35% INTERENERGO 76.474 MWh
2,59% FUTURE ENERGY 84.292 MWh 3,26% DANSKE KOMODITIS 106.211 MWh
3,51% % PETROL ENERGETIKA 114.245 MWh 6,00% MWh HSE MAK ENERGY 195.358 MWh 9,98% ENERGY WIND 324.781 MWh 14,80% EFT 481.718 MWh 16,94% EDS 551.317 MWh 26,78% GEN-I Prodazba 871.762 MWh
0 200,000 400,000 600,000 800,000 1,000,000
Chart 2.20 Achieved import of electricity by traders/suppliers in 2020 In 2020, electricity was imported by 22 active traders/suppliers, of which GEN-I Prodazba is the largest importer with 26,78 % of shares in the total import, followed by EDS Skopje with 16,94%, EFT with 14,80% and the other smaller importers have a share lower than 10 %.
2.7.3.4 BALANCE ENERGY MARKET In 2020 major and essential changes in the operation of the electricity transmission system operator- AD MEPSO Skopje occurred, in balancing the power system, i.e., in providing system services and energy for balancing the power system. Since January 1st, 2020, the Balancing Rules of the Electricity System started to apply, according to which, transparent and market-oriented procedures for secondary and tertiary reserve purchase for voltage regulation are applied, as well as a transparent methodology on price determination for deviation from the nominated and realized electricity quantities (imbalances) is applied. Also, since January 1st, 2020, all regulated performers of energy activities have balance responsibility.
During 2020, AD MEPSO Skopje determined that the electricity system, beside the primary reserve, needs a capacity on secondary (aFRR) and tertiary (mFRR) reserve for regulation as displayed in Table 2.32.
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Table 2.32 Necessary capacity for secondary (aFRR) and tertiary (mFRR) reserve in 2020
Value Capacity (MW)
aFRR mFRR neg. pos. neg. pos.
min -37 16 -50 140
max -16 37 -50 140
In December 2019, AD MEPSO Skopje conducted an auction on annual reserve purchase for secondary regulation for 2020 in monthly level, while the auctions for reserve purchase for tertiary regulation were conducted for each month separately. During 2020, depending on the needs, AD MEPSO has conducted auctions and day-ahead for energy of tertiary regulation. In accordance with the manner, determined in the Balancing Rules of the Electricity System, in 2020, two electricity producers are qualified, that can provide secondary and tertiary reserve for regulation, such as AD ESM Skopje and AD TE-TO Skopje. AD ESM Skopje provides system services since 2020, while AD TE-TO Skopje provides system services since mid 2020. At the same time, in the Register of Balance Service Providers are 14 registered generation units for secondary regulation and 22 generation units for tertiary regulation. Table 2.33 encloses the data on average hours of system service provision and average price per capacity and energy for every hour during 2020. Table 2.33 Data on average hours of system service provision and average price per capacity and energy for every hour during 2020
aFRR+ aFRR- mFRR+ mFRR-
Auction necessities (MW) 26.27 26.27 140 50
Activated Capacity (MW) 18.45 17.91 109.59 42.39
Price per capacity (Eur/MW) 12.49 12.49 6.24 6.19
Activated energy (MWh) 8.97 8.51 37.14 27.53 Price of activated energy 56.91 19.67 48.74 18.10 (Eur/MWh) In the part of system services, AD MEPSO Skopje has realized costs for capacity provision and activation of electricity upwards, while it has also achieved revenue when activating electricity downwards by system service providers (Table 2.34).
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Table 2.34 Costs of AD MEPSO Skopje for adequate usage of system services, i.e., capacity for secondary and tertiary reserve and activation of energy for secondary and tertiary regulation in 2020
Eur AD ESM Skopje ТЕ-TO AD Skopje Total I. Total costs 19,289,117 701,468 19,990,585
Price for capacity (MW) 11,205,959 354,359 11,560,318
Costs for aFRR+ 1,646,517 0 1,646,517
Costs for aFRR- 1,646,517 0 1,646,517
Costs for mFRR+ 6,333,937 66,490 6,400,427
Costs for mFRR- 1,578,988 287,869 1,866,857 Costs for energy (MWh) 8,083,158 347,109 8,430,267
Costs for aFRR+ 2,084,601 0 2,084,601
Costs for mFRR+ 5,998,557 347,109 6,345,666
II. Revenues for energy (MWh) 1,668,496 160,531 1,829,027
Revenues for aFRR- 762,001 0 762,001
Revenues for mFRR- 906,495 160,531 1,067,026
The above table shows that, in 2020, for providing system services, AD MEPSO Skopje, has had costs in the amount of 19,9 million euros, which were given to system service providers and revenues in the amount of 1,9 million euros, which were provided by system service providers for activating the energy for regulation downwards. Of these total costs, 11,5 million euros are for capacity, while 8,4 million euros are for activated electricity. Considering that this mechanism has been implemented since 2020, there is no possibility to make a comparison with the previous years. In 2020, there was an establishment of 20 balancing groups, which is a higher number in relation to 2019, 2018 and 2017, when the number of balance groups was 11, nine, i.e., seven. The increase of the number of balance groups corresponds with the increase of participants on the Electricity Market, all due to the liberalization of the Electricity Market. The grouping of electricity market participants is voluntary, and each participant in the electricity market can choose its balance group and it can switch groups. It must be noted that in 2020, the performers of regulated activities have become balance responsible, thus the increased number of all analyzed data enclosed in Table 2.35, hence no comparison with the previous years.
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Table 2.35 Review of activities according to balancing groups, in the period from 2017 to 2020
Year Positive deviations Negative deviations Number of hours Electricity amount hours Electricity amount BG (MWh) (MKD) (MWh) (MKD) 2020 20 66,607 305,628 507,560,541 73,840 406,678 1,217,053,930 2019 11 33,499 29,430 0 45,251 83,916 353,551,521 2018 9 26,728 25,366 0 38,876 69,961 301,295,205 2017 7 18,268 21,798 0 35,193 104.08 422,473,115
The above Table indicates increase in hours and increasing quantities of electricity with included imbalances within the balancing groups in both directions, also because of increasing nominated quantities of electricity. The overall financial implication of the balancing groups due to the negative imbalances, amounts with 1.217.053.930 MKD (approximately 19,8 Eur). For the first time in 2010 was provided the frame according to which balance groups are paid for imbalances if they have left electricity in the system, i.e., when there are positive deviations. The total financial benefit from the balancing process of balance groups is 507.560.541 MKD (approximately 8,25 million Euros). According to the data that are available to the Energy Regulatory Commission, the average balancing price for positive deviations in 2020 is 1,659 MKD per MWh (27 Eur per MWh), i.e., 3,994 MKD/MWh (59 Eur/MWh) for negative deviations. Commencing with 2019, the Energy Regulatory Commission with the support by the MM-Central Software System on monitoring the functioning of the Electricity Market, keeps track of the data on imbalances by the balance groups according to the balance responsible party. Therefore, in 2020, the largest balance group was the balancing group for which balance responsible party is the EVN HOME DOO Skopje with negative imbalances in approximate value of 154 GWh, followed by the AD ESM Skopje with negative deviations in approximate value of 125 GWh, EVN Snabduvanje with 31 GWh, EDS AD Skopje with 29 GWh, EMO with 24 GWh imbalances, and so on. (Chart 2.21).
SPH AD 4
Solaris Pauer 4
ESM Energetika 5 Energy Active 5 MEPSO 16 EMO 24 EDS AD Skopje 29 EVN Snabduvanje 31
ESM Skopje 125 EVN HOME 154 0 20 40 60 80 100 120 140 160 180
Chart 2.21 Review of negative deviations according to balance responsible party in 2020 (in MWh)
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2.7.3.5 ORGANIZED ELECTRICITY MARKET During 2020, specific activities were undertaken for commencement of functionality of Organized Electricity Market, i.e., followed by a nomination of an Organized Electricity Market Operator, whereas at the same time shall be nominated electricity market operator. As the electricity market operator, on January 17th, 2020, MEMO DOOEL Skopje, in accordance with Article 8 of the Decree on the Operations of the Organized Electricity Market and for the necessary technical, staff and financial conditions that it shall fulfill (Official Gazette of the Republic of North Macedonia'’ no. 227/19) (hereinafter: Decree), has submitted to the Energy Regulatory Commission a notification for fulfilling the conditions for being entitled as the nominated electricity market operator. On May 8th, 2020, the Energy Regulatory Commission, after receiving positive opinion from the electricity transmission system operator, has submitted to the Government of the Republic of North Macedonia a notification that MEMO DOOEL Skopje fulfills the conditions deriving from the Decree. Pursuant to Article 90, paragraph 4, point 1 of the Law on Energy*, on September 9th, 2020, the Government of the Republic of North Macedonia adopted a Decision entitling the Electricity Market Operator as the Organized Electricity Market Operator (“Official Gazette of the Republic of North Macedonia'’ no. 2018/20).
2.7.4 ELECTRICITY CONSUMPTION STRUCTURE The year of 2020 has recorded decrease in the electricity consumption, compared to 2018 and 2019 and growth in consumption compared to 2018. The displayed data in Table 2.36 show the gross-consumption decrease by 0,33 % in 2020 compared to 2019, while in relation to 2017, the growth amounts with 0,92%. The net-consumption in 2020 compared to 2019 indicates decrease by 0,45 %, while in relation to 2018, the growth amounts with 1,26 %. Table 2.36 Gross and Net Consumption of electricity in 2018, 2019, and 2020 (in MWh)
2020/19 2020/18 Year 2018 2019 2020 (%) (%) Gross consumption 7,390,511 7,483,619 7,458,585 -0,33% 0,92% Net consumption 6,394,701 6,504,575 6,475,568 -0,45% 1,26% Transmission consumers 902,692 963,342 956,621 -0,70% 5,97% Consumers at the US 3,881,214 3,806,597 3,562,826 -6,40% -8,20% Other consumers 1,610,795 1,734,635 1,956,121 12,77% 21,44% Losses 995,810 979,044 983,017 0,41% -1,28% Transmission 125,269 119,721 123,889 3,48% -1,10% Distribution 870,541 859,323 859,128 -0,02% -1,31% Elektrodistribucija 869,545 858,426 857,472 -0,11% -1,39% ESM - Energetika 996 897 1,656 84,62% 66,27%
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Typical for 2020, in relation to the previous two years, is the significant growth of consumption by other consumers, in the amount of 12,77 % in relation to 2019, and 21,44 % compared to 2018 (Table 2.36). The mentioned trend is logical and is in correlation with the decrease of consumption in the regulated market where the sole supplier is the universal supplier, whereby 2020 marks reduction by 6,40 % in relation to 2019, i.e., by 8,20 % compared to 2018. 2020 has recorded increase in the quantities of electricity to cover losses within respective grids, in the amount of 0,41 % in relation to 2019, while the total losses in 2020 are lower by 1,28 % compared to 2018. The structure of Net consumption of electricity in 2018, 2019, and 2020, according to types of connections is displayed in Table 2.37 and Chart 2.22. Table 2.37 Structure of Net consumption of electricity in 2018, 2019 and 2020, according to types of connections (in MWh)
2020/19 2020/18 Year 2018 2019 2020 (%) (%) Connected to 902,692 963,342 956,621 -0,70% 5,97% the transmission network (110 kV) MV1 340,965 306,938 275,336 -10,30% -19,25% MV2 904,174 926,890 861,930 -7,01% -4,67% LV1.1 - Public lightning 100,727 99,873 94,991 -4,89% -5,69% LV1.2 415,371 417,182 393,794 -5,61% -5,19% LV2 - Households 2,989,008 3,038,217 3,191,108 5,03% 6,76% LV2 – Other 741,765 752,132 701,865 -6,68% -5,38% Table 2.37 confirms the decrease of electricity consumption in all connection categories, except for households where electricity consumption increases in 2020 by 5,03% compared to 2019, i.e., there is growth by 6,76% compared to 2018. This is expected, considering that in 2020, because of the Covid - 19 pandemics, different operating schemes and rotations by economic operators were made, i.e., work from home was practiced.
10,84% LV2 - Other 701.865 MWh
49,28% 3.191.108 MWh LV2 - Households
6,08% LV1.2 393.794 MWh
LV1.1 - Public lightning 1,47% 94.991 MWh 13,31% MV2 861.930 MWh 4,25% MV1 275.336 MWh Connected to 14,77% the transmission network 956.621 MWh (110 kV) 0 500.000 1.000.000 1.500.000 2.000.000 2.500.000 3.000.000 3.500.000
Chart 2.22 Structure of the Net consumption of electricity in 2020 according to types of connections (in MWh)
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Public lightning marks decrease in electricity consumption in 2020 by 5,61 % compared to 2019, because most municipalities, responsible for public lightning, apply energy efficiency measures. At the end of 2020, the total number of end electricity consumers according to the number of metering points within the electricity system is 876.569, indicating an increase by 7.955, or by 0,92 % compared to 2019 (Table 2.38). Table 2.38 End consumers of electricity in 2018, 2019, and 2020, according to metering points
Year 2018 2019 2020 2020/19 2020/18 Total 742,035 868,614 876,569 0,92% 18,13% Consumers in 12 14 14 0,00% 16,67% the electricity transmission network Consumers in 742,023 868,600 876,555 0,92% 18,13% the electricity distribution networks MV1 76 84 84 0,00% 10,53% MV2 1,023 1,131 1,126 -0,44% 10,07% LV1.1 5,361 5,799 6,541 12,80% 22,01% LV1.2 2,912 3,305 3,221 -2,54% 10,61% LV2 Households 658,687 765,963 774,935 1,17% 17,65% LV2 - Other 73,964 92,318 90,648 -1,81% 22,56% The number of consumers connected to the electricity transmission network in 2020 is 14, i.e., there are no changes in relation to the number of consumers in 2019. The number of consumers connected to the Electricity Distribution Networks is 876,555. The mentioned number refers to the number of connected households by 774.935 in 2020, indicating growth by 1,17 % compared to 2019. The number of consumers connected to the LV1.1 category or public lightning, marks increase in 2020 by 12,8 % compared to 2019, because in 2020 municipalities left the open electricity market. At the same time, it was important to categorize connections considering that for different connection categories, different electricity distribution tariff is paid.
2.7.5 RETAIL MARKET The Electricity Retail Market includes the purchase and sale of electricity by traders / suppliers of electricity, and the end consumers of electricity. In 2020, not all of the consumers have chosen their electricity supplier, and they were supplied by the universal supplier, i.e., EVN HOME DOO Skopje.
2.7.5.1 LIBERALIZED MARKET For the first time since the beginning of the liberalization of the electricity market in the state since 2020, more than half of the total consumption, i.e., 52,24% of the needs, have been provided by the open electricity market. This percentage includes the electricity purchased to cover electricity losses in
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the electricity transmission network, i.e., in the electricity distribution networks. This share marks significant increase compared to 2019, when 49,13 % of electricity needs were provided in the liberalized market.
SWITCHING SUPPLIER The number of completed switching electricity supplier procedures in 2020 is 16.210, which is by 124,2 % higher than in 2019, when the number of completed switching procedures was 7.231 (Table 2.39). In 2020, the trend initiated in 2019 continues, when for the first time there is a switching procedure in the category of households, although it has to be clarified that these cases refer to residential facilities owned by legal entities, whereby, with switching supplier for their core business activities, at the same time they have switched electricity supplier to the residential facilities. Table 2.39 Overview of the electricity supplier switch procedures in 2020 and 2019 by consumers connected to the System operated by Elektrodistribucija DOOEL Skopje
Number of switches Number of switches Annual consumption (entities) (connections) (MWh)
2019 2020 20/19 (%) 2019 2020 20/19 (%) 2019 2020 20/19 (%) Consumers 392 987 151.79 3,108 13,005 318.44 418,257 483,418 15.58 Large Consumers 1,932 1,563 -19.10 4,064 3,115 -23.35 92,882 90,697 -2.35 Small Consumers 23 46 100.00 59 90 52.54 366 331 -9.47 Households 2,347 2,596 10.61 7,231 16,210 124.17 511,506 577,430 12.89 Total The supplier switch procedure according to the number of connections in 2020 is 1,85 % and is greater than twice than the realized norm in 2019 (0,83 %). On the other hand, the supplier switch procedure according to the annual consumption in 2020 is 8,92 %, i.e., is by one percentage point greater than the realized norm in 2019 (7,86%).
SUPPLY OF END CONSUMERS The Chart below shows the electricity suppliers and traders share in the electricity supply to large and small consumers on the liberalized electricity market in 2020, including sales towards the operators of respective systems for covering electricity losses.
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9,8% OTHER 14 365.790 MWh 2,3% SOLARPRO HOLDING 86.567 MWh 2,5% FUTURE ENERGY 92.226 MWh 2,5% DANSKE KOMODITIS 94.729 MWh
ENERGY ACTIVE 2,8% 103.740 MWh 2,8% ENERGY WIND 105.288 MWh 3,2% EVN Home - SnabKS 119.010 MWh 3,2% U POWER 120.575 MWh 7,0… GEN-I Prodazba 262.523 MWh
EFT 17,0% 637.186 MWh 22,8% EDS 852.852 MWh 24,1% EVN Supply 901.610 MWh 0 100.000 200.000 300.000 400.000 500.000 600.000 700.000 800.000 900.000 1.000.000 Market share Sale in MWh
Chart 2.23 Market shares of traders and suppliers in the electricity sale to end consumers on the liberalized market in 2020 (in %, and in MWh) In 2020, the average sale price of traders and suppliers for electricity intended for end consumers, i.e., for all large and small consumers in the liberalized market was 3.589,66 MKD/ MWh or 58,37 €/MWh. This price is by 7,97 % lower than the average price in the liberalized market in 2019 which was 3.900,44 MKD/ MWh, i.e., 63,42 €/MWh (Chart 2.24).
4,300 3.900 3.800 3,489 3,590 3,242 3,300 3.537 2,736 3,312 3,215 2,800 MKD/ MKD/ MWh 3,018 2,300 2.545 2016 2017 2018 2019 2020
Average purchase price Average sale price
Chart 2.24 Average purchase and sale prices by traders and suppliers of electricity sold to end consumers in the liberalized in the period from 2016 to 2020 (in MKD / MWh) Chart 2.24 shows that in 2020, beside the uncertainties and the shock caused by Covid - 19 pandemics, market forces, i.e., the relations between the offer and demand, have continued the stable trend from the previous year of 2019. In 2020, the average trade margin was 374,64 MKD / MWh, or 6,09 € / MWh, i.e., is 10,4% of the average selling price. As for cross-reference, in 2019 the trade margin was 362,97 MKD / MWh, or 5,90 € / MWh, reaching 9,3% of the average sale price.
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CONSUMERS SUPPLY During 2020, there were 16 active electricity suppliers providing supply to the consumers on the liberalized retail electricity market, i.e., four times more than in 2019. The Chart below encloses the market share and the realized sale of suppliers in the liberalized retail electricity market in 2020.
OKTA 0,04% 1.047 MWh POWER ON 0,05% 1.324 MWh VANGARD 0,12% 3.405 MWh ELEM TRADE 0,30% 8.283 MWh FUTURE ENERGY 0,66% 18.287 MWh ELNOR 0,69% 19.106 MWh
MIST ENERGY 0,71% 19.844 MWh
SOLARIS TRADE 1,35% 37.647 MWh 2,26% ENERGIA GAS AND POWER 62.769 MWh 3,11% SOLARPRO HOLDING 86.567 MWh 3,73% ENERGY ACTIVE 103.740 MWh 4,28% EVN Home – SnabKS 119.010 MWh 4,34% U POWER 120.575 MWh 15,45% EFT 429.346 MWh 30,48% EDS 847.243 MWh 32,43% EVN Supply 901.610 MWh 0 200,000 400,000 600,000 800,000 1,000,000 Market share Sale in MWh
Chart 2.25 Market share and realized sale of suppliers in the liberalized retail electricity market in 2020 (in % and MWh).
The dominant supplier in this segment on the retail market, is EVN Snabduvanje and EDS with a share of 32,43%, or 39,48%, respectively, followed by EFT with 15,45 %, and the other 13 electricity suppliers with a share lower than 5 %. In the chart below are provided the average purchase prices of active suppliers in the liberalized retail electricity market.
3,800 3.915 3,515 3,638 3.388 3,300 MKD/ MKD/ MWh 3.418 3.651 3,394
2,800 2.736 3.023 2,628
2,300 2016 2017 2018 2019 2020
Average purchase price Average sale price
Chart 2.26 Average prices on purchase and sale by electricity suppliers in the liberalized retail market in the period from 2016 to 2020 (in MKD / MWh)
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The enclosed data reveal that the average selling price of electricity in the liberalized market in 2020, is 3.638 MKD/MWh or 59,15 €/MWh and is by 7,1 % lower than the average price in the liberalized market, in 2019, which was 3.915 MKD/MWh, i.e., 63,66 €/MWh. In 2020, the average supply margin in the liberalized market was 244,17 MKD / MWh, or 3,97 € / MWh, i.e., is 6,71% of the average selling price. As a cross-reference, the average margin during 2019 was 264,64 MKD/MWh or 4,30 €/MWh, whereas the share in the average sale price was 6,76%. The data indicate stable market relations from 2019, have continued in 2020 too. The presented average prices reached in the liberalized electricity market exclude the electricity transmission and distribution system charges, i.e., in accordance with the Electricity Supply Rules, for the use of respective systems, consumers receive separate invoices by the respective operators.
PRICE COMPARISON TOOL SWITCH.MK The Energy Regulatory Commission with the technical assistance provided by the
USAID and NARUC, in November 2019 has successfully completed the development and has promoted the first price comparison tool Switch.mk. During 2020, the price comparison tool was actively used by suppliers and web-platform visitors, with the presence of 11 suppliers with active offers for consumers. I.e., twice more compared to 2019. During the year, there were 28 offer changes, made by suppliers, the majority of which were newly established offers (14) by EVN Makedonija Elektrosnabduvanje. The largest part of published competitive offers was by suppliers, foremost directed to small consumers of the II tariff level, or to the LV2 connection category, which by the beginning of 2019, were entitled to the right to choose a supplier in the liberalized market. The mentioned category, in practice includes the largest number of commercial consumers, i.e., the small-sized and middle-sized enterprises in the country. The published offers for this consumer category indicate that the difference between the lowest and the highest offer for an average consumer profile is 35 %, which can be seen from electricity market movements in 2020, where most small consumers have chosen their supplier in the liberalized market.
2.7.5.2 REGULATED MARKET
During 2020, EVN HOME DOO Skopje, as a Universal Supplier, and Electricity Supplier in Last Resort, has supplied households and small consumers in case neither has chosen a supplier on the liberalized market, or due to certain circumstances were without electricity supplier. EVN HOME DOO Skopje has supplied consumers under prices and tariffs approved by the Energy Regulatory Commission. Other consumers deprived of the right to use the universal service, in cases due to specific reasons fail to acquire supply on the liberalized market, shall be entitled to the right
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to use the electricity supply as a last resort, which is also provided by EVN HOME DOO Skopje within 90 days, unless they conclude a new contract with any supplier on the liberalized market. In such a case, the electricity selling prices are not regulated by the Energy Regulatory Commission, i.e., these prices are set each month based on the monthly prices reached on the day-ahead market of the Hungarian Power Exchange (HUPX), increased by 50 %. The table below displays the volume and average prices on electricity purchase from the regulated supplier, in 2020
Table 2.40 Volume and average prices on electricity purchase from the regulated supplier, in 2020 (in kWh and MKD/kWh)
Quantity (kWh) Price (MKD/kWh) Total/ Average 3,562,408,006 2.5253 AD ESM Skopje 3,330,612,000 2.2514 ALPIK Skopje 5,758,000 4.0463 Preferential producers from RES 201,907,769 7.0133 GEN-I Prodazba -392,000 -148.9214 AD ESM Skopje 24,522,237
In 2020, EVN HOME DOO Skopje, has provided the largest volume of the electricity required for households and small consumers supply from AD ESM Skopje. The remaining electricity needed for small consumers and households was provided by preferential producers of electricity from renewable sources, while small portion was drawing electricity from the system because of imbalances, as well as purchase of electricity from traders and sale to other traders in order to optimize the portfolio. The table below displays the volume and average prices of electricity purchased from the regulated supplier, in the period from 2018 to 2020.
Table 2.41 Volume and average prices of electricity purchased from the regulated supplier, in the period from 2018 to 2020 (in MWh and MKD/MWh)
Year 2018 2019 2020 MWh MKD/ MWh MWh MKD/ MWh MWh MKD/ MWh Total/ Average 3,871,270 2,764.7 3,806,597 2,535.0 3,562,408 2,525.3 AD ESM 3,484,704 2,483.0 3,596,962 2,294.7 3,330,612 2,251.0 Elektrodistribucija 28,517 3,426.3 2,747 3,483.7 0 0 Preferential producers 241.73 6,158.7 208,903 6,637.3 201,908 7,013.3 from RES Purchase in the free market 116.32 3,988.0 5,758 4.0463 AD MEPSO -2,016 24,522
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The presented data in Table 2.41, for 2020 compared to 2019, reveal that no electricity was purchased in the liberalized market. During 2018, there were some quantities of electricity purchased in the liberalized market. During 2020 it can be noticed that EVN HOME Skopje does not take over the excess electricity from Elektrodistribucija, and one of the reasons is that both electricity market participants are balance responsible parties. Additionally, the Table above shows the continuant reduction in the overall purchased quantities by the universal supplier, which is in correlation with the increased volume of purchases in the liberalized electricity market. At the same time, the average price on electricity purchase in 2020 is by 6,80 % lower in relation to the average price in 2019, i.e., is by 8,77 % lower than in 2018. Regarding the sale of electricity by the regulated supplier in 2020, the Table 2.42 below presents sold quantities, the average selling prices, and the selling shares per customer categories, defined with the Tariff System on electricity sales to consumers supplied by the universal supplier and supplier in last resort. In 2020, the regulated supplier has reached 3.562.407.991 kWh sale, under the average price of 4,4929 MKD / kWh, with all fees on grids services included. Table 2.42 Quantities, average prices, and shares of electricity sold by the regulated supplier according to consumer categories, in 2020 (in kWh, in MKD / kWh, and in %)
Share in Quantity Price sale (kWh) (MKD/kWh) (in %)
Total/ Average 3,562,407,991 4.4929 100.00
Consumers - 35 kV 2,273,140 5.1346 0.06
Consumers - 10(20) kV 40,124,297 4.9160 1.13
Other I level 72,816,399 6.5186 2.04
Other II level 253,666,498 8.8905 7.12
Public lightning 2,419,349 5.6596 0.07
Households 1T 62,110,266 4.5593 1.74
Households 2T 3,128,998,042 4.1984 87.83
The largest sale shares of electricity in 2020, fall on the category of Households (89,58%), whereas 87,83 % is by households with double tariff meters, while 1,74% is the sale shares by households with single tariff meter (Chart 2.27).
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Households 2Т 87,83%
Households 1T 1,74%
Public lightning 7,00%
Other II level 7,12%
Other I level 2,04%
Consumers - 10(20) kV 0,00%
Consumers - 35 kV 0,06%
0,00% 10,00% 20,00% 30,00% 40,00% 50,00% 60,00% 70,00% 80,00% 90,00% 100,00%
Chart 2.27 Structure of the sale according to tariff categories of consumers, with the regulated supplier in 2020 (in %) The category of other consumers participates with overall of 10,42 % in the sales by the universal supplier, whereby the largest part of other consumers is the second tariff level with 7,12 %. The Chart 2.28 below displays the structure of the sale by the regulated supplier according to tariff categories in the period from 2018 to 2020, while Table 2.4439 is an overview of the average selling prices, with included fees on grid services, the supplier to tariff consumers in 2018, the supplier to tariff consumers, and the universal supplier in 2019, i.e., the universal supplier in 2020.
Households 2Т Households 1Т Public lightning Other II level Other I level Consumers - 10(20) kV Consumers - 35 kV Total/ Average
0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000
Total/ aver Consumers Consumers Other I Other II Public Households Households age - 35 kV - 10(20) kV level level lightning 1Т 2Т 2020 3,562,406 2,273 40,124 72,816 253,666 2,419 62,110 3,128,998 2019 3,806,597 7,332 131,002 166,874 376,212 86,960 70,045 2,968,172 2018 3,871,270 12,328 132,452 201,713 435,977 90,026 83,166 2,915,608
2020 2019 2018
Chart 2.28 Structure of the sale according to tariff categories of consumers, with the regulated supplier in the period from 2018 to 2020 (in MWh)
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The data enclosed above indicate changes during the years, i.e., the electricity consumption for all consumer categories supplied by the universal supplier, except for households, is reduced. At the same time, there is a significant change in public lightning where in 2020, reduction by 97 % is noticed compared to 2019 and 2018, because municipalities, that are responsible for public lightning purchase electricity in the liberalized electricity market. Furthermore, in 2020, consumers connected to medium voltage have an electricity consumption by 70% lower compared to the electricity consumption in 2019 and 2018, respectively. Consumers in low voltage that belong to the category of Other, in 2020, have a reduced electricity consumption by 40% compared to 2019, i.e., by 49% compared to 2018. This indicates that consumers use the benefits in the liberalized electricity market and step by step they abandon the regulated electricity market. In accordance with the trends, it is expected that in middle term, households shall be supplied by the universal supplier. The key findings in the last Table of the Electricity Chapter indicate that the average selling price on supply to consumers in the regulated market in 2020 is by 1,03 % higher compared to 2019, whereby, in relation with 2018, it is lower by 0,58 % (Table 2.44). Concerning electricity prices for consumer in the regulated electricity market during 2020, the Energy Regulatory Commission has stated several times that there is a clear tendency that electricity prices, especially for households, to move upwards, hence the necessity to include different household categories to the vulnerable consumer category. In relation to the protection of vulnerable consumers, the proposals of the Energy Regulatory Commission are enclosed in the section of Consumer Protection. Table 2.43 Average selling prices of suppliers of tariff consumers / universal supplier in 2018, 2019 and 2020 (in MKD /kWh and %)
Year 2018 2019 2020 2020/19 2020/18 (MKD/kWh) (MKD/kWh) (MKD/kWh) (%) (%) Average 4.5193 4.4473 4.4929 1.03 -0.58 Consumers - 35 kV 5.1182 4.0688 5.1346 26.19 0.32 Consumers - 10(20) kV 6.0488 4.9999 4.9160 -1.68 -18.73 Other I level 6.9251 6.2013 6.5186 5.12 -5.87 Other II level 8.6760 8.6640 8.8905 2.61 2.47 Public lightning 5.5600 5.5600 5.6596 1.79 1.79 Households 1T 4.4454 4.4400 4.5593 2.69 2.56 Households 2T 4.0715 4.0611 4.1984 3.38 3.12
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ELECTRICITY PRICE STRUCTURE The transformation of the electricity market from a totally regulated market to a liberalized one, the influence of the Energy Regulatory Commission upon the components that form the electricity price paid by consumers that are supplied by the universal supplier, is reduced. Namely, in accordance with the existing legal regulation and secondary legislation regarding electricity price, influence the components displayed in Table 2.44. Table 2.44 Structure of average electricity price in accordance with the data for 2020
Average % of share No. Manner of DESCRIPTION prices in final price determination (MKD/kWh) Liberalized 1 Purchase price 2.5327 51,44% market/ legal obligation 1.1 ESM 2.1112 42,88% Liberalized market (tender) Purchase in the free 1.2 0.0000 0,00% Liberalized market market (tender) 1.3 Renewable sources 0.3592 7,30% legal obligation 1.4 Balancing 0.0623 1,27% legal obligation 2 Transferred costs 0.0018 0,04% ERC 3 transmission tariff 0.1736 3,53% ERC Tariff for the market 4 0.0062 0,13% ERC operator Tariff for 5 1.7680 35,91% ERC distribution Margin of the determined in tender 6 Universal 0.5155 10,47% for a period of 5 years Supplier 7 Correction factor -0.0747 -1,52% ERC 8 Total 4.9231 100,00% In accordance with Table 2.44, it can be concluded that the Energy Regulatory Commission in 5 out of 7 components of the electricity price paid by end consumers, however these 5 components influence the final price by 38 %, and the rest 62 % of the amount of the final price cannot be influenced by the Energy Regulatory Commission. The components that form the electricity price paid by consumers that are supplied by the universal supplier, are displayed in Chart 2.29. The data from Table 2.45 and Chart 2.29 confirm that the dominant influence upon the electricity price paid by consumers that are supplied by the universal supplier, has the electricity price that is provided by the universal supplier by conducting tender procedure by AD ESM, by 42,88 %. Another factor is the electricity distribution tariff that participates with 35,91 % in the final price. The margin of the universal supplier participates with 10,47 %, while the renewable sources participate with 7,30 %. The rest 4,96 % comprise the electricity transmission tariff, the market operator tariff, the transferred costs and the balancing costs of the Universal Supplier.
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Margin of the Correction factor US -1,52% 10,47%
Distribution tariff ESM 35,91% 42,88%
Tariff for the market liberalized operator market 0,13% 0% transmission Renewable sources tariff Transferred costs Balancing 7,30% 3,53% 0,04% 1,27%
Chart 2.29: The components that form the electricity price paid by consumers that are supplied by the universal supplier
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NATURAL GAS
2020
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III. N A T U R A L G A S
During 2020, the natural gas transmission system, managed by AD GAMA Skopje, has transmitted 337,8 million nm3, thus continuing the trend of increased quantities of natural gas in the transmission system, because of the operation of the co-generating plants and natural gas power plants. These are record quantities of natural gas transmission, since the transmission system operations has commenced, indicating growth by 14,5 % in relation to the natural gas quantities transmission in 2019, i.e., it is over 42% of the total capacity of the natural gas transmission system. During 2020, the Energy Regulatory commission has amended the Rulebook on the Determination of the Maximum Allowed Revenue and Regulated Average Tariffs on Natural Gas Transmission, Natural Gas Market Organization and Management and Natural Gas Distribution, in order to harmonize it with situations of declared state of war, state of emergency or a state of crisis and has amended the Tariff System on Natural Gas Transmission and Natural Gas Transmission Organization and Management, but has postponed the introduction of the Entry – Exit Tariff System for one year, i.e., until 2021. The state-owned Joint Stock Company for energy activities performance, the National Energy Resources Skopje, state-owned (hereinafter: NER), has entered an investment cycle, and shall continue with construction of the new main gas pipelines enabling connectivity of all main urban centers, in the state, to the Natural Gas Transmission System. NER has plans to invest in new interconnection to connect the natural gas transmission system of the RNM with Greece, Kosovo, Serbia, Albania, and Bulgaria. In 2020, there were some activities on realization of the main gas pipelines starting from Shtip towards Negotino and Bitola, and the gas pipeline from Skopje towards Tetovo and Gostivar. In future, the envisage is on the construction of a main gas pipeline from Gostivar towards Kichevo and Ohrid. Regarding the additional interconnections, closest is the realization of the interconnection pipeline with the Republic of Greece, whereas a feasibility study has been developed by the NER and the Greek Operator DESFA, along with the route predicted by the project. In 2019, the investment grant in the amount of 20 % within the value of the project has been approved by the Western Balkan Investment Fund (WBIF) mechanism. Also, a grant by the European Commission was approved for the preparation of the project documentation and the technical – economy analysis. In 2020, AD GA – MA, operating under the existing gas pipeline, has expanded of the gas network around the City of Skopje, and has implemented software solutions for monitoring losses of the system, telemetric systems for readings of the main metering station, the main metering and regulatory gas stations, as well as the metering and regulatory stations of natural gas consumers. In the end of 2020, the Assembly of the RNM of approved the Law on Makpetrol AD Skopje Share Purchase within the natural gas transmission operator AD GA-MA Skopje, hence in the first months of 2021 court disputes between the Government and MAKPETROL AD Skopje regarding pipeline ownership began to settle. The whole process shall be finalized by a financial transaction for purchasing the share of Makpetrol AD Skopje by the state, hence AD GAMA shall be completely state-owned. The new development of the natural gas market, beside the harmonization with the EU legislation from the Third Energy Package in the part of division and certification of the natural gas transmission operator, shall provide e real distinction between the transmission network and distribution network of natural gas. Namely, an important part of the network, Annual Report on operations of the ERC in 2020 - 88 -
built by AD GA-MA Skopje, represents a city gas pipeline network in the cities of Skopje, Kumanovo, Kratovo, Kriva Palanka, i.e., operates under pressure of 12 bars, and in accordance with the standards it shall be considered as a distribution network. As a result of the status-quo status regarding ownership, this distinction was not possible to be made and the whole network of AD Ga-MA Skopje was considered as a transmission network, providing inaccurate presentation of the development degree of the gas infrastructure in the state. The new development of the natural gas market comprises the procedure of choosing a new natural gas distributor in the whole territory in the state. During 2020, the Energy Regulatory Commission has formed a commission for preparing the tender documentation for competitive dialog which shall be allocated to a public private partnership, for financing, projection, construction, management, maintenance, and development of the natural gas distribution system in the Republic of North Macedonia. During this year, this commission has conducted the first phase of the procedure, by electing two companies which shall compete for future natural gas distributor in the territory of the Republic of North Macedonia. The procedure is ongoing, and it shall continue in 2021. In December 2020, the Energy Regulatory Commission has adopted a new tariff on natural gas transmission for 2021. The average tariff is 1,28 MKD/nm³ and notes a decrease by 6 % compared to the tariff for 2020, which was 1,3641 MKD/nm³. In the Republic of North Macedonia, the below listed Natural Gas Distribution Systems are built, located in: - the Technology and Industry Development Zone (TIRZ) Skopje 1 and Skopje 2, located in the village Bunardzik, with 5,6 km length of the Distribution Grid; - the Municipality of Kumanovo, with 16 km length of the Distribution Grid, and - the Municipality of Strumica, with 40 km length of the built Distribution Grid. The above-mentioned Natural Gas Distribution Systems serve to deliver the natural gas requirements to industrial and commercial consumers, to public institutions and households. In 2020, all distribution systems indicate slow increase in the number of consumers and delivered natural gas quantities. The energy infrastructure in the natural gas sector in the Republic of North Macedonia, enclosed in Chart 3.1, provides: − Natural gas import; − Natural gas transmission; − Natural gas distribution, and − Natural gas supply.
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Chart 3.1 The energy infrastructure in the natural gas sector in the Republic of North Macedonia The Republic of North Macedonia fails to provide its own natural gas sources, and the entire quantity of natural gas is imported from Russia, through the gas pipeline system of the Republic of Bulgaria.
3.1 GRID SERVICES
3.1.1 NATURAL GAS TRANSMISSION SYSTEM The transmission system in the Republic of North Macedonia is composed by one main interconnection gas pipeline with the Republic of Bulgaria, entering the Republic of North Macedonia at Deve Bair / Zidilovo, and extends in length of 98,197 km through Kriva Palanka, Kratovo and Kumanovo, reaching Skopje. Also, there is a gas pipeline distribution network from the magistral / main pipeline to the cities of Kriva Palanka, Kratovo, Kumanovo, the Technology and Industry Development Zone – Skopje (Bunardzik), and the City of Skopje with 32 km in length, and the City Gas Pipeline Network with 72,613 km in length (Kriva Palanka, Kratovo, Kumanovo and Skopje), with an overall of 202,22 km. The Transmission System is composed by GMS (main metering station), located in the entrance to the Republic of North Macedonia, by six GMRS (main metering and regulating stations), allocated on the entrance to the cities of Kriva Palanka, Kratovo, Kumanovo, two in Skopje, i.e., Skopje Sever (North) and Skopje Jug (South), and one in the Technology and Industry Development Zone Skopje, 52 MRS (metering and regulating stations), and three MS
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(metering stations). The overall capacity of the Natural Gas Transmission System is 800 million nm3 / annually, with operational pressure of 54 bar, and a diameter of the magistral / main pipeline of 530 mm. The capacity of the system provides ability to 1.200 million nm3 / annually increase, affordable with the construction of a compression station on the first part of the magistral / main gas pipeline. The maximum flow of the magistral gas line is 180.000 nm3/ hour. Further below is Table 3.1 providing review of the overall transmitted natural sas quantities within the past three years, according to months and Chart 3.2 displays the natural gas quantities in the natural gas transmission system in the Republic of North Macedonia in 2018, 2019 and 2020, according to months. Table 3.1 Review of transmitted natural gas quantities in 2018, 2019, and 2020
2020/2018 2020/2019 Month 2018 2019 2020 (%) (%)
January 39,135,873 43,078,500 40,398,593 3.23 -6.22
February 41,263,024 26,484,400 25,685,072 -37.75 -3.02
March 26,141,728 11,679,600 15,424,233 -41.00 32.06
April 6,152,732 7,447,900 12,420,294 101.87 66.76
May 4,082,727 4,245,000 3,472,468 -14.95 -18.20
June 4,097,401 26,459,800 18,191,718 343.98 -31.25
July 4,127,965 36,369,000 35,558,954 761.42 -2.23
August 19,344,371 31,257,200 36,546,198 88.92 16.92
September 21,802,853 35,293,900 36,836,141 68.95 4.37
October 24,577,370 20,045,600 22,383,870 -8.92 11.66
November 28,925,564 20,667,900 44,865,486 55.11 117.08
December 33,976,481 32,178,200 46,097,970 35.68 43.26
Total 253,628,089 295,207,000 337,880,997 33.22 14.46
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nm3
50.000.000
45.000.000
40.000.000
35.000.000
30.000.000
25.000.000
20.000.000
15.000.000
10.000.000
5.000.000
0
2018 2019 2020
Chart 3.2 Monthly dynamics on Natural Gas Quantities in the Transmission System in the Republic of North Macedonia in 2018, 2019, and 2020 The largest consumption of natural gas is in the winter months, which is expectable considering that natural gas is mostly exploit in the production of district heating. The highest influence on the profile of consumption is by the cogeneration plant, owned by TE- TO AD Skopje. The above enclosed Chart review clearly displays that in the period from July to September, the consumption of natural gas has increased, due to the operations in the mentioned months by TE-TO AD Skopje, while, in the winter period, the heating plants are included as large consumers. The months indicating minimum consumption of natural gas is due to the industrial consumers exploiting natural gas for self-requirements and are operable during the entire year. The display in Chart 3.3 below, draws conclusions that in the past years there has been a significant growth of the natural gas consumption in the Republic of North Macedonia. The annual consumption for the previous 10 years is below 100 million nm3, while reaching its maximum with 337,8 million nm3 in 2020.
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400.000.000
350.000.000
300.000.000
250,000,000
200,000,000
150,000,000
100,000,000
50.000.000
0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Chart 3.3 History of natural gas consumption in the period from 2004 to 2020 (in nm3) The nominal capacity of the Transmission Grid is 800 million nm3 on annual level. Considering the difference in dynamics of the natural gas consumption between the winter and summer months, the exploitation of the system varies during the year. In the past years, least exploitation of the system is in the months of April and May, escalating with 5 % to 15 %, while in the winter months, when practically is the season on high natural gas consumption, the escalation is significantly higher, and on daily base is in the range of 50 % to 80 % exploitation of the Natural Gas Transmission System. The number of connections to the Natural Gas Transmission System in the period from 2010 to 2020 is displayed in Chart 3.4.
80
70 60 56 56 57 60 53 55 48 50 45 41 37 40 36
30
20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Chart 3.4 The number of connections to the Natural Gas Transmission System in the period from 2010 to 2020 The number of connections to the Natural Gas Transmission System in the late years also indicates growth, starting with more than 30 connections in 2010, and growing up to 60 connections in 2020. In 2020, out of 60 connections to the natural gas transmission system, 52 were active connections.
Annual Report on operations of the ERC in 2020 - 96 -
In 2020, the natural gas losses in the natural gas transmission system are within the frames of the allowed level of technical losses by 0,5 %, in accordance with article 10 of the Rulebook on the Determination of the Maximum Allowed Revenue and Regulated Average Tariffs on Natural Gas Transmission, Natural Gas Market Organization and Management and Natural Gas Distribution.
3.1.1.1 DEVELOPMENT AND INVESTMENT PLANS The Development and Investment Plans shall secure safe and permanent natural gas transmission, distribution, and supply, enlarge the efficiency of the systems under respective planning, construction and maintenance of the gas pipeline, the metering regulatory stations and equipment, by observant management and supervision of the Transmission Grid, and by auditing all works within the protection area of the gas pipeline. NER shall continue with the construction of the new magistral / main gas pipelines providing connectivity of all main urban centers in the country to the Natural Gas Transmission System. In 2021, NER shall continue with the construction of the magistral / main gas pipelines within Phase 1 route: - Shtip – Negotino – Bitola, and - Skopje – Tetovo – Gostivar (deadline of realization in 2021). Projects envisaged to realization by NER within Phase 2, are: - The Magistral / Main Gas Pipeline, section Gostivar – Kichevo (deadline for realization in 2022), - The Magistral / Main Gas Pipeline, section Kichevo – Ohrid (deadline for realization in 2025). NER is planning on constructing more interconnection lines, which shall enable connection of the Republic of North Macedonia with the neighboring countries, whereby, interconnections are forecasted with Greece, Kosovo, Serbia, Albania, and Bulgaria. The best envisaged perspective is the interconnection to Greece, an interconnection line for natural gas transmission connecting the Republic of North Macedonia and Greece. This line shall provide additional quantities of natural gas acquired by other source of supply for the Republic of North Macedonia, along with the existing with Bulgaria, and diversification, security of supply, and an opportunity for reducing the price on the import of natural gas considering that natural gas shall be available by a number of diverse producers and suppliers. The realization of the project, with a feasibility study already developed, is in authorization of the NER.
Plan on Development and Expansion of the Natural Gas Transmission System of GA-MA AD Skopje in the period 2021-2025 With aim of providing development and reconstruction of the Natural Gas Transmission System, as well as development and expansion of the Transmission Grid, the main activities planned for the period from 2021 to 2025 are listed below: - Expansion of the City Gas Pipeline Network (Grid) in the City of Skopje, in order to connect new consumers,
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- Completion of the Gas Line Ring in Skopje with junction / distribution gas pipelines for connection of interested consumers, enabling increase of natural gas consumption, and decrease in the emission of harmful gases on the territory of the City of Skopje; - Construction of a new connection enabling the TE-TO AD Skopje to connect to the magistral / main gas pipeline, and by that, reduce energy losses; - System on monitoring and detecting gas leakage in the gas pipeline network (grid), enabling reduction of losses of the transmission system; - Installation of adequate software on detecting and reporting of losses, and system balancing, and - Telemetric system and SCADA-system in facilities to provide remote metering, and management of the system in GMS Zidilovo, all GMRS, and part of the MRS through one single dispatching center. The investment plan of AD GA-MA Skopje is displayed in Table 3.2. Table 3.2 Development and Investment Plan of AD GA-MA Skopje
Years 2021 2022 2023 2024 2025 Planned investments. 315,000,000 212,000,000 196,000,000 142,000,000 151,000,000 (In MKD)
3.1.1.2 NATURAL GAS TRANSMISSION TARIFF AD GA-MA Skopje, in accordance with the Rulebook on the Manner and Conditions for Regulation of the Tariffs for Transmission and Management of the Natural Gas Transmission and Distribution Systems (“Official Gazette of the Republic of Macedonia” no. 201/16, 87/17, and 142/18), and the Tariff System on Natural Gas Transmission (“Official Gazette of the Republic of North Macedonia”, no. 244/18 and '’Official Gazette of the Republic of North Macedonia'’ no. 274/19 and '’Official Gazette of the Republic of North Macedonia'’ no. 312/20), on November 25th, 2020, has submitted to the Energy Regulatory Commission, a request for approval of the regulated revenue and tariffs on the activity of natural gas transmission for 2020. On December 30th, 2020, The Energy Regulatory Commission has adopted the Decision on approving the average tariff of 1,2800 MKD / nm³ for natural gas transmission activity performance. In accordance with the mentioned Decision, the tariffs according to category of consumers are: - Producers of district heating and electricity in combined plant, whereby electricity and district heating and / or mechanical energy is simultaneously and in a single process produced, the tariff amounts with 1,2237 MKD/nm³ of natural gas; - Producers of district heating, and industrial consumers with a tariff in the amount of 1,3461 MKD / nm³ of natural gas, and - Other consumers with natural gas consumption lower than 150.000 nm³ in the previous year, the tariff is in the amount of 1,4073 MKD/nm³ of natural gas.
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The tariff on natural gas transmission, in the past years, escalates in the range of 1,2 to 1,5 MKD / nm3. Considering the small size and insufficiently developed system, the tariff on transmission is dependable by the quantities of natural gas transmission. The Table below reviews the history data on the amount of average tariff for natural gas transmission, in the period from 2010 to 2021. Table 3.3 Average tariffs of natural gas transmission in the period from 2010 to 2021 (in MKD/nm3)
Year Tariff 2010 2.2170 2011 1.0935 2012 1.1753 2013 1.2465 2014 1.4642 2015 1.5375 2016 1.5918 2017 1.5359 2018 1.4530 2019 1.2783 2020 1.3641 2021 1.2800
3.1.2 NATURAL GAS DISTRUBUTION SYSTEMS The Natural Gas Distribution Systems in the country are still in the early stages of development. Notwithstanding, the distributed quantities of natural gas within the systems are low, there is a continuant noticeable growth during the years. There are three active Natural Gas Distribution Systems in the Republic of North Macedonia: - The Head Office of the Technology and Industry Development Zones Skopje (DTIRZ Skopje), - JP Strumica Gas and - JP Kumanovo Gas. Further below is the table-review displaying quantities of natural gas distribution referring to the above-mentioned systems.
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Table 3.4 Quantities of natural gas distribution in 2018, 2019, and 2020 in the distribution grids of JP Kumanovo Gas, JP Strumica Gas, and DTIRZ Skopje
20/18 20/19 Distribution system 2018 (nm³) 2019 (nm³) 2020 (nm³) (%) (%)
DTIRZ Skopje 4,715,736 5,001.800 4,189.100 -11.17 -16.25
JP Strumica Gas 590,737 544,300 709,100 20.04 30.28
JP Kumanovo Gas 505,043 683,100 548,500 8.60 -19.70
The largest quantities of natural gas distribution are within the distribution system of DTIRZ Skopje, where industrial consumers are located, and use the natural gas within their production processes, and for district heating. The distributed natural gas quantities in DTIRZ, JP Strumica Gas, and JP Kumanovo Gas in the period from 2010 to 2020 are enclosed in Chart 3.5.
nm3
7.000.000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (nm³) (nm³) (nm³) (nm³) (nm³) (nm³) (nm³) (nm³) (nm³) (nm³) (nm³)
DTIRZ Skopje JP Strumica gas JP Kumanovo gas
Chart 3.5 Distributed natural gas quantities in DTIRZ, JP Strumica Gas, and JP Kumanovo Gas in the period from 2010 to 2020 In 2020 there is a mild decrease in natural gas consumption by DTIRZ Skopje, hence the total consumption in distribution zones is reduced. Beside this trend, Strumica Gas has increased natural gas consumption in 2020 compared to 2019.
Table 3.5 and Chart 3.6 provide review on the number of consumers, according to connection in the distribution systems, within the past 10 years.
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Chart 3.5 The number consumers to the Natural Gas Distribution System in the period from 2010 to 2020
Year DTIRZ Skopje JP Strumica Gas JP Kumanovo Gas Total
2010 2 0 0 2
2011 3 0 8 11
2012 5 14 12 31
2013 7 37 13 57
2014 6 55 11 72
2015 7 202 37 246
2016 8 202 40 250 2017 7 240 57 304
2018 10 263 69 342
2019 9 294 86 389
2020 12 315 100 427
The highest number of consumers are in the distribution system managed by JP Strumica Gas, in 2020 with overall of 315 consumers. Next is JP Kumanovo Gas with the overall of 100 consumers, and the least, i.e., only 12 consumers are registered with the distribution system of DTIRZ Skopje.
450 400 350 300 250 200 150 100 50 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 DTIRZ Skopje JP Strumica gas JP Kumanovo gas
Chart 3.6 Number consumers to the Natural Gas Distribution Systems in the period from 2010 to 2020
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Typical for the number of consumers in JP Strumica Gas and JP Kumanovo Gas, is the continuant increase in the past period, and the most significant rebound is in the 2015 with further continuant growth. These data indicate that the natural gas supply to small-sized consumers and households implies significant potential to be utilized in the expansion of the distribution grids, and to creating better and more appealing conditions on wider use of natural gas in households and by the small consumers. In 2020, the natural gas losses in the natural gas transmission system are within the frames of the allowed level of technical losses by 0,7 %, in accordance with article 14 of the Rulebook on the Determination of the Maximum Allowed Revenue and Regulated Average Tariffs on Natural Gas distribution, Natural Gas Market Organization and Management and Natural Gas Distribution.
3.1.2.1 NATURAL GAS DISTRIBUTION SYSTEM DEVELOPMENT PLANS The development of the Natural Gas Distribution Systems depends foremost on the number of consumers, i.e., on the interest and requirements of the new natural gas consumers to connect to the distribution systems. During 2021, DTIRZ Skopje has planned a construction of a branch from the main internal gas pipeline network (grid) in TIRZ Skopje 1, followed with the construction of connections for two new consumers, as well as the extension to the new construction plot with a connection installation. The investment plan of DTIRZ Skopje, in the period 2021- 2025 is displayed in Table 3.6. Table 3.6 Development and investment plan of DTIRZ for the period 2021- 2025 (in MKD)
Description 2021 2022 2023 2024 2025 Purchase of equipment 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 Construction of thigh / branch for 2,400,000 / / / / connection of new users in TIRZ-Skopje 1 Construction of thigh / branch for 5,100,000 / / / / connection of new users in TIRZ- Skopje 2 In 2020, DTIRZ Skopje has also planned some investment operations in TIRZ Skopje 2, i.e., the construction of a branch from the main internal gas pipeline network (grid), as well as connections for new consumers. The required assets for investments, DTIRZ Skopje has planned to be provided by the Budget of the Republic of North Macedonia, and assets from self-financing activities of the Head Office – Directorate. The development of the Natural Gas Distribution System of JP Kumanovo Gas in the forthcoming five years, envisage construction of the secondary gas pipeline with 30 km in length, designed to supply approximately 3.000 consumers, whereby 5 % belong to enterprises and institutions, while 95 % of the new network (grid) shall be planned for households’ connections. The number of connections, by 2025, is expected to grow with approximately 1.500 connections and the natural gas delivery is expected to be 4.500.000 m3. The provided investments in 2021 for reconstructions, constructions, purchase of equipment, project preparations, testing the natural gas distribution system amount to 15.000.000 MKD. Annual Report on operations of the ERC in 2020 - 102 -
The distribution system of the JP Strumica Gas is not connected to the Natural Gas Transmission System of the Republic of North Macedonia, and the natural gas is taken from the decompressing station. The mentioned distribution system represents, the so-called virtual gas pipeline system, i.e., a system of compressed natural gas in transportation modules under pressure of 200 bar to 250 bar, which are later transported to the decompressor station of JP Strumica Gas, close to Strumica, where the natural gas is decompressed from 250 bar to 4 bar, and then the gas is distributed in the natural gas distribution system. During 2020, JP Strumica Gas has built a new distribution gas pipeline network with a length of 5 km. The plan for 2021 envisages construction of new 4 km secondary gas pipeline distribution network (grid), while for the next five years, construction of a secondary gas pipeline network with 65 km in length is planned, with forecasted connections of individual and collective residential facilities, commercial premises in the City of Strumica, whereby in the newly projected industrial zones, including connections of agricultural producers in the Strumica Agriculture Area for production of horticultural crops. The planned investments during 2021, shall be in a value of approximately 57 million MKD, as part of the Budget of the Municipality Strumica, and part provided by JP Strumica Gas from assets under collection of the tax fee on connection to the distribution gas line grid, and by natural gas sale.
3.1.2.2 NATURAL GAS DISTRIBUTION TARIFFS The Energy Regulatory Commission at the end of December 2020, has adopted Decisions on new tariffs on Natural Gas Distribution referring to the three active distribution system operators, commencing application from 2021 (Table 3.7). Table 3.7 Tariffs on natural gas distribution in the period from 2010 to 2021 (in MKD/nm3)
DTIRZ Skopje JP Strumica Gas JP Kumanovo Gas 2.4992 2.8700 3.0000
Further below, a review displaying tariffs on Natural Gas Distribution referring to individual distribution systems, authorized by the Energy Regulatory Commission for the period from 2010 to 2020.
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Table 3.8 Tariffs on natural gas distribution in the period from 2010 to 2021 (in MKD./nm3)
Year DTIRZ Skopje JP Strumica Gas JP Kumanovo Gas 2010 3.4423 2011 3.4423 2012 3.1338 2013 3.0785 2.8700 2014 2.8859 2.8700 2015 2.6213 2.8700 2016 2.2879 2.8700 2017 2.8418 2.8700 3.0000 2018 2.7957 2.8700 3.0000 2019 2.7127 2.8700 3.0000 2020 2.6603 2.8700 3.0000 2021 2.4992 2.8700 3.0000 DTIRZ Skopje is with the longest period in history data in relation to the tariff on distribution, revealing gradual reduction of the tariff on distribution within this distribution system operator. Compared to JP Kumanovo Gas and JP Strumica Gas, the tariff is fixed considering the relatively low quantities distributed through these systems.
3.2 WHOLESALE MARKET Since January 1st, 2015, the Natural Gas Market in the Republic of North Macedonia is fully liberalized. The Energy Regulatory Commission only establishes the tariffs on transmission and distribution of the natural gas. As by the end of 2020, six years are completed since the full liberalization of the Natural Gas Market, without any disturbances noticed in the status among the participants on the market. During 2020, the below listed participants have individually appeared on the Natural Gas Market in the purchase of natural gas: − Producers of district heating for the supply requirements of district heating to consumers in the City of Skopje; − Combined plants for the production of electricity and district heating, and − Traders.
The Chart below displays a review of the participants on the Natural Gas Market in the Republic of North Macedonia, in 2020.
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Chart 3.7 Participants on the Natural Gas Market in the Republic of North Macedonia in 2020 Chart 3.8 displays the percentage participation of natural gas consumption according to consumption type in 2020. The Chart reviews that in the consumption of natural gas in the Republic of North Macedonia, dominant share is by the producers of electricity and district heating, i.e., the combined plants of electricity and district heating production, and the heating plants.
Their shares in the end consumption of natural gas in 2020, is 84 %. Natural gas for Natural gas for distribution industrial companies consumers 14% 2%
Natural gas for district heating and electricity generation 84%
Chart 3.8 Participation in natural gas consumption according to consumption type in 2020
Annual Report on operations of the ERC in 2020 - 105 -
Metal industry has a dominant role for industrial natural gas consumers. The lowest share by only 2 % in the final consumption is by consumers connected to the systems for natural gas distribution. Regarding the import and wholesale trade of natural gas, dominant share in 2020 is reached by TE-TO AD Skopje with 77 %, while the shares of the Makpetrol AD Skopje are with 23 % (Chart 3.9).
MAKPETROL Skopje 23%
TETO Skopje 77%
Chart 3.9 Market shares of traders on the Wholesale Natural Gas Market in 2020 Typical for TE-TO AD Skopje, as a dominant participant on the Wholesale Natural Gas Market is the exclusion of regular trade activities, i.e., imported natural gas to be exploited for self-requirements in the part of the combined production of electricity and district heating, but lower quantities are individually sold to the regulated producer of district heating.
3.2.1 AVERAGE MONTHLY SALE PRICES IN 2020 The liberalization of the Natural Gas Market in 2015 represents a significant market reform enabling free formation of prices by the participants on the market. However, the Natural Gas Market remains insufficiently developed with relatively low consumption of natural gas, and with small number of active traders and suppliers with natural gas. In 2020, there are two entities importing natural gas: Makpetrol AD Skopje and TE- TO AD Skopje. The data enclosed displays the average monthly import prices represent weighted average price of these two market participants in 2020 in the wholesale natural gas market. Tariffs on transmission and distribution are excluded, and prices are with VAT exempted.
Annual Report on operations of the ERC in 2020 - 106 -
Table 3.9 Average monthly prices on Wholesale Natural Gas Market in 2020 (in MKD/nm3)
Average purchase price for Average Average price on natural Month producers of district import prices gas on the Wholesale heating and combined Market plants January 15.7627 16.4430 17.8109 February 15.8292 16.7269 17.8875 March 15.9798 17.7420 18.1779 April 12.3538 11.9470 17.0460 May 15.3505 17.1390 17.2624 June 10.1577 9.3442 17.0914 July 9.3032 9.0331 14.0001 August 11.4733 9.1676 13.3552 September 9.3205 9.1409 13.3857 October 8.7871 8.8645 11.7160 November 8.8149 8.8246 11.4763 December 8.7971 8.7518 11.4676
Prices of the natural gas during 2020, mark decrease. Producers of district heating, and the cogenerate plants have recorded lower price on the natural gas, considering they are the largest consumers of natural gas.
3.3 RETAIL MARKET The retail market includes consumers connections to the Natural Gas Distribution Systems, as well as the small-sized consumers with direct connections to the Natural Gas Transmission System. In 2020, the dominant share on the Retail Natural Gas Market is by Makpetrol Promgas DOOEL Skopje with 80 % of market shares, DTIRZ Skopje with 16 % of market shares, followed by Strumica Gas with 2 %, and Kumanovo Gas with 2 % of market shares (Chart 3.10). Makpetrol Promgas performs the supply of natural gas to consumers connected to the transmission system, while DTIRZ Skopje, Kumanovo Gas and Strumica Gas supply natural gas to consumers on the level of distribution system. DTIRZ Skopje and Kumanovo Gas purchase natural gas from Makpetrol Promgas.
Annual Report on operations of the ERC in 2020 - 107 -
KUMANOVO- STRUMICA GAS GAS Strumica Kumanovo 2% 2%
DTIRZ Skopje 16%
MAKPETROL PROM-GAS Skopje 80%
Chart 3.10. Market shares of suppliers in the Retail Natural Gas Market in 2020
3.3.1 AVERAGE MONTHLY SALE PRICES IN 2020 On the Retail Natural Gas Market, the dominant supplier is the Makpetrol Promgas providing supply to consumers connected to the Natural Gas Transmission System in Skopje, while consumers connected to the distribution systems managed by JP Kumanovo Gas, DTIRZ Skopje and JP Strumica Gas acquire supply by the mentioned entities, which in accordance with the Law are holders of a License for natural gas supply. The data on average monthly natural gas prices in 2020 in the retail market displayed in Table3.10. Confirm that the natural gas price in the retail market in 2020, continues to drop. Unlike the average prices on households, the category of other consumers records some lower price, foremost due to the connection to the Natural Gas Transmission System by large number of these consumers. On the other hand, households are supplied by the Natural Gas Distribution Systems, whereby, the end price to pay includes the margin of their end supplier, i.e., distributor. Also, JP Strumica Gas supplies more households because of its specific characteristics to represent a so-called virtual distribution system with a higher natural gas prices for its consumers compared to the price for consumers directly connected to the transmission system. Further below, in 2020, the average monthly prices on the Retail Natural Gas Market are enclosed and referring to the category of households’ consumers and other, and the average retail prices are with VAT exempted, and excluded tariffs on transmission and distribution.
Annual Report on operations of the ERC in 2020 - 108 -
Table 3.10 Average monthly natural gas prices in the Retail Market in 2020 (in MKD/nm3)
Month Households Other
January 29.4867 19.0270 February 29.0860 19.1669 March 27.6442 19.2594 April 25.2812 18.0719 May 25.0006 18.2099 June 24.0250 18.0747 July 24.8878 15.0849 August 22.0656 14.3323 September 22.0890 14.3706 October 21.3437 12.8187 November 21.2526 12.6767 December 22.4724 12.7060
Further below is the review of average monthly prices on natural gas in the period from 2015 to 2020, reached on the retail market for natural gas consumers connected directly to the transmission system. Prices are with VAT exempted, but with included tariff on transmission. Within this segment, dominant natural gas supplier is Makpetrol Promgas, and the Chart display reveals that in 2020 the retail price on the natural gas is rather stable, and in relation to 2019, has recorded a decrease by approximately 15 %.
Annual Report on operations of the ERC in 2020 - 110 -
30,0000
25,0000
20,0000 nm3 15,0000 ден/
10,0000
5,0000
0,0000
Chart 3.11. Average monthly prices of the natural gas on the Retail Market with included tariff on transmission, in the period from 2015 to 2020 (MKD / nm3)
Annual Report on operations of the ERC in 2020 - 110 -
DISTRICT HEATING
2020
Annual Report on operations of the ERC in 2020 - 111 -
IV. DISTRICT HEATING
In the Republic of North Macedonia, the active heating systems are located only on the territory of the City of Skopje, an area of three functional heating systems: (A) The largest heating system is managed by the BALKAN ENERDZI GRUP AD Skopje, which in 2020 has had 55 thousand consumers connected, with overall of engaged capacity of 494 MW. (b) The system of the AD ESM, Podruznica Energetica had over 3.800 consumers connected, with overall of engaged capacity of approximately 50 MW. (c) The system of Skopje Sever AD Skopje with more than 500 connected consumers with 8 MW of the overall engaged capacity. In 2020, on the District Heating Market, the regulated energy activity performers located on the territory of the City of Skopje, are: - Production of Heat BE DOOEL Skopje, - Distribution of Heat BE DOOEL Skopje, whose district heating distribution system is enclosed in picture 4.1, - Supply with Heat BE DOOEL Skopje, - AD ESM, Podruznica Energetika and - Skopje Sever AD Skopje. Associations in property of the Balkan Enerdzi Grup AD Skopje in 2020 are managing the largest District Heating System in the Republic of North Macedonia. The production of district heating is performed with the basic assets taken over by Toplifikacija AD, inherited in the overtake in 2012/ with a lease agreement. The distribution of the district heating is performed with basic assets that are leased with an agreement from Joint Stock Company for Construction and Management of Residential and Business Premises of State Importance – Skopje in 2012. In 2019, continues the positive trend on magnifying numbers of consumers connected to the central heating system, where the number of consumers connected to the largest system, managed by BALKAN ENERDZI GRUP AD Skopje, has increased by over 3 %. In February 2020, the Assembly of the Republic of North Macedonia has adopted the Law on Energy Efficiency which prescribes conditions regarding disconnection from the district heating system. In 2020, the Energy Regulatory Commission has made two amendments to the Rules on District Heating Supply, harmonizing the rules with the Law on Energy Efficiency, and supplementing them with the disconnection conditions. Picture 4.1 displays the District Heating Distribution System of District Heating Distribution BE DOOEL Skopje.
Annual Report on operations of the ERC in 2020 - 112 -
Picture 4.1 Display of the District Heating Distribution System of District Heating Distribution BE DOOEL
Annual Report on operations of the ERC in 2020 - 113 -
4.1 DISTRICT HEATING PRODUCTION There are three regulated producers of district heating, and one unregulated producer of district heating operating on the territory of the City of Skopje. The capacities for district heating production of the District Heating Production BE DOOEL Skopje, are: − Toplana Istok (Heating Plant East), with a production capacity of 279 MW, located in the east industrial zone of the City; − Toplana Zapad (Heating Plant West) with a production capacity of 171 MW, located in Taftalidze Settlement, and − Toplana 11 Oktomvri (11 Oktomvri Heating Plant) with a production capacity of 28 MW, located in Kisela Voda Settlement. The overall active production capacity of the District Heating Plants, managed by the Production of Heat BE DOOEL Skopje, is 478 MW. Natural gas is used to produce the district heating. The combined producer of district heating and electricity, TE-TO AD Skopje, accommodates 160 MW of district heating production capacity as an unregulated producer of district heating. AD ESM Skopje, Podruznica Energetika provides availability of an overall production capacity of 96 MW. In 2018, AD ESM Skopje became an owner of the combined district heating and electricity plant, formerly owned by the KOGEL STIL DOO Skopje. The district heating production capacity is 13,5 MW, thereof. Skopje Sever AD Skopje performs the district heating production with two boilers, each of 23 MW, or with an overall production capacity of 46 MW. Further below is the table review of the district heating production capacities. Table 4.1. District heating production capacities
Company Heating plant/ Boiler Fuel Technology Power [MW]
BE Production TO Istok Natural gas TO 279.12
BE Production TO Zapad Natural gas TO 170.97
BE Production TP 11 Oktomvri Natural gas TO 28.21
TE-TO Skopje TE-TO Skopje Natural gas TE-TO 160
ESM ESM Energetika K1 Natural gas TO 32
ESM ESM Energetika K2 Natural gas TO 32
ESM ESM Energetika K3 Natural gas TO 32
ESM TE-TO KOGEL TE Natural gas TE-TO 13.58
SKOPJE SEVER Skopje Sever K1 Natural gas TO 23
SKOPJE SEVER Skopje Sever K2 Natural gas TO 23
Annual Report on operations of the ERC in 2020 - 114 -
The district heating overall production capacity is 793,88 MW, whereby, the engaged capacity of users is approximately of 510 MW. The mentioned status opens connection possibilities for new district heating consumers. The district heating production is dependable on the meteorology conditions, and usually the largest production is reached in the months of December and January (Table 4.2). Table 4.2 Produced district heating according to months and producers in 2020
Production ESM Month TETO Skopje Skopje Sever Total BE Energetika January 66,969,799 60,537,400 13,163,727 1,896,000 142,566,926 February 64,625,100 27,128,700 8,797,091 1,449,000 101,999,891 March 75,709,199 7,913,455 1,116,000 84,738,654 April 34,502,799 6,288,599 2,982,273 533,000 44,306,671 October 11,549,100 17,026,099 3,463,364 472,000 32,510,563 November 21,969,899 64,913,700 9,278,182 1,325,000 97,486,781 December 24,985,498 81,184,300 10,804,909 1,538,000 118,512,707 Total 300,311,394 257,078,798 56,403,000 8,329,000 622,122,192 The produced district quantity in ESM Energetika is calculated, not measured. Further below is the Chart of the overall district heating production, according to months and producers, in 2020.
kWh
160.000.000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 January February March April October November December Skopje Sever ESM Energetika ТЕТО Skopje Production BE
Chart 4.2 Produced district heating according to months and producers in 2020 (kWh) All producers of district heating exploit natural gas as fuel, influencing positive contribution to the ecological aspect. The table below provides review of natural gas consumption according to producers and months in 2020.
Annual Report on operations of the ERC in 2020 - 115 -
Table 4.3 Natural gas consumption according to months and producers in 2020
Month Production BE ESM Energetika Skopje Sever Total January 7,155,982 1,458,642 185,291 8,799,915 February 6,818,786 973,067 168,731 7,960,584 March 7,942,982 877,325 130,974 8,951,281 April 3,474,943 328,774 61,850 3,865,567 October 1,142,245 382,943 57,137 1,582,325 November 2,463,448 1,028,121 157,814 3,649,383 December 2,610,107 1,197,255 183,286 3,990,648 Total 31,608,493 6,246,126 945,083 38,799,702 The natural gas quantity in ESM Energetika is calculated, not measured. The delivered district heating and the consumed natural gas quantities are in tight correlation with the external temperatures reached in the period of the district heating season, from October to April.
°C
10 8.85 8.48 7.56 7.60 7.82 7.44 8 7,00 7,00
6.16 5.97 6
4
2
0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Chart 4.3 External temperatures reached in heating season in the period from 2011 to 2020 In 2020, the achieved average temperature for the district heating season, is 7,44 °C. The mentioned temperature is higher than the average forecasted temperature of 6,23 °C. In the past years, continuously, the achieved average temperatures in heating season, are above 7 °C. The late year of achieved average temperature in heating season was below 7 °C, was the 2012. 4.2 DISTRICT HEATING DISTRIBUTION Active distribution systems on the territory of the City of Skopje, are managed by: − Distribution of Heat BE DOOEL Skopje, − AD ESM– Podruznica Energetika and − Skopje Sever AD Skopje. The energy balance on overtaken and delivered district heating quantities, expressed in MWh, by distributors, according to months in 2020, is displayed in the Table below. Annual Report on operations of the ERC in 2020 - 116 -
Table 4.4 Energy balance of district heating distributors according to months and companies in 2020
Distribution BE January February March April October November December Total
Input 127,507,200 91,753,800 75,709,201 40,791,400 28,575,200 86,883,600 106,169,800 557,390,201
Output 114,436,271 83,783,876 67,845,232 35,221,274 22,874,044 76,599,202 94,340,192 495,100,091
Realized losses 10,25% 8,69% 10,39% 13,66% 19,95% 11,84% 11,14% 11,18%
ESM Energetika January February March April October November December Total
Input 13,163,727 8,797,091 7,913,455 2,982,273 3,463,364 9,278,182 10,804,909 56,403,000
Output (calculated) 11,584,080 7,741,440 6,963.840 2,624,400 3,047,760 8,164,800 9,508,320 49,634,640
Losses 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 12,00%
Skopje Sever January February March April October November December Total
Input 1,896,000 1,449,000 1,116,000 533,000 472,000 1,325,000 1,538,000 8,329,000
Output 1,576,282 1,240,474 804,084 373,409 320,895 1,135,007 1,346,661 6,796,812
Realized losses 16,86% 14,39% 27,95% 29,94% 32,01% 14,34% 12,44% 18,40%
Total January February March April October November December Total
Input 142,566,927 101,999,891 84,738,656 44,306,673 32,510,564 97,486,782 118,512,709 622,122,201
Output 134,186,295 94,887,795 53,247,193 28,099,743 12,151,931 53,764,264 108,551,973 484,889,194
Table 4.4 reviews the overtaken and delivered quantities of district heating by distributors of district heating, as well as the realization of losses in 2020, thereof. In accordance with the Rulebook on District Heating Price Regulation, the Energy Regulatory Commission shall approve up to 12 % of losses within the systems of district heating distribution. The decisions on prices since July 2020, have made forecasts on the annual losses for 2020, and shall be subjected to an Audit in July 2021. For the system managed by the District heating Distribution BE DOOEL, in 2020 the envisaged losses are on the level of 11,2 %, while the systems for district heating distribution governed by ESM Energetika and Skopje Sever, envisage losses of 12 % for 2020. In line with the GIS recordings of the District Heating Distribution BE DOOEL, the overall length of the distribution network (grid), including the length of connection points of facilities, as by the end of December 31st, 2020 is 228 km. The length of the distribution network (grid) of the other two distributors, is also enclosed in Table 4.5. Table 4.5 Length of the distribution network (in km)
Length of the distribution Distributor network Distribution BE 228 ESM Energetika 38 Skopje Sever 10 Total 275 Annual Report on operations of the ERC in 2020 - 117 -
4.3 DISTRICT HEATING SUPPLY Suppliers of district heating are Heat Supply BE DOOEL Skopje, ESM Energetika, and Skopje Sever AD Skopje. The table below encloses the number of district heating consumers according to category and supplier in December 2020. Table 4.6 Number of district heating consumers according to category and supplier (December 2020)
Supplier Households Education Other Total Snabduvanje BE 53.970 95 1.027 55.092 ESM Energetika 3.749 19 68 3.836 Skopje Sever 488 8 8 504 Total 58.207 122 1.103 59.432
The largest number of district heating consumers, or 55.092 consumers, as by the end of December 2020, received supply by the District Heating Supply BE DOOEL Skopje, which is with 92,6% of the overall number of 59.432 consumers. Next is the supplier ESM Energetika, providing supply to 3.836 consumers, and the Skopje Sever AD Skopje with 504 consumers. Largest number of consumers belong to the category of households, but considering that these are small-sized consumers, significant part of the district heating consumption is by the categories of other consumers and education (Chart 4.4 and Table 4.7).
Other; 18%
Education; 5% Households; 77%
Chart 4.4 Share of delivered quantities of district heating, according to categories of consumers, in 2019 The category of household consumers is with a share of 77% in the delivered district heating, followed by the category of other consumers with the share of 18%, and the least share is by the category of education with 5%. Table 4.7 Delivered district heating according to category and supplier
Supplier Households Education Other Total Snabduvanje BE 385,390,373 19,476,113 90,233,605 495,100,091 ESM Energetika 36,729,634 6,948,850 5,956,157 49,634,640 Skopje Sever 3,674,870 1,852,922 1,269,020 6,796,812 Total 425,794,877 28,277,885 97,458,782 551,531,543
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Shares of suppliers in the overall of the delivered district heating, is presented with the Charts below.
ESM Energetika Skopje Sever 9% 1%
Snabduvanje BE 90%
Chart 4.5 Shares of suppliers in the overall of delivered district heating in 2020 The enclosed Chart reveals that the District Heating Supply BE DOOEL Skopje is with the largest share of 88 % in the overall of the delivered quantities of district heating. Next, is the system of AD ESM Podruznica Energetika with the share of 10 %, and as last is the Skopje Sever with the share of 2 % in the overall delivered quantities of district heating.
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kWh
140,000,000 120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0 January February March April October November December Skopje Sever AD Skopje AD ESM, Podruznica Energetika Supply with heat BE DOOEL Skopje
Chart 4.6 Delivered district heating, according to months and supplier, in 2020 In line with the produced district heating is the largest delivery of district heating in the months of January and December, when the external temperatures are at the lowest (Chart 4.6). The delivered quantities of district heating in the past 10 years, according to supplier, are presented with the Chart below.
kWh 600.000.000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Skopje Sever AD Skopje AD ELEM, Podruznica Energetika Supply with Heat BE DOOEL Skopje
Chart 4.7 Delivered district heating according to supplier in the past 10 years
4.3.1 DISTRICT HEATING PRICES Pursuant to the Rulebook on District Heating Prices and System Services (“Official Gazette of the Republic of North Macedonia”, no. 116 / 19), the District Heating Production BE DOOEL Skopje, the District Heating Distribution BE DOOEL Skopje, and the District Heating Supply BE DOOEL Skopje on May 29th, 2019 have submitted regular requests for adjustment of the approved
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maximum revenue for 2020. Additionally, in accordance with the Rulebook, requests were also submitted by the Skopje Sever AD Skopje and AD ESM Skopje – Podruznica Energetika. On August 21st, the Energy Regulatory Commission has adopted five decisions upon submitted requests by the enterprises. Further below is the data review of the tariffs on district heating, and the engaged district heating capacity, for the individual suppliers. Table 4.8 Tariffs on district heating, according to suppliers, adopted in 2020
Households Education Other Supplier MKD/kWh MKD/kW/year MKD/kWh MKD/kW/year MKD/kWh MKD/kW/year Supply with Heat BE 1.8866 1,071.84 1.8866 1,071.84 2.6413 1,500.58 DOOEL ESM Energetika 1.7786 962.66 2.3122 1,251.46 3.0237 1,636.53 Skopje Sever 2.2275 918.84 4.2438 1,750.57 4.2438 1,750.57 For cross-reference of the fee on the district heating and its changes with the existing suppliers of district heating, as a model is used a regular flat with heating area of 50 m2, and average annual consumption of district heating of 7.500 kWh and engaged capacity of 6,25 kW (Table 4.9). Table 4.9 Review of average fee on district heating for the category of households, for the District heating Supply BE DOOEL, AD ESM Skopje, Podruznica Energetika and Skopje Sever AD Skopje, in 2018, 2019 and 2020
2018 2019 2020 Supplier 20/18(%) 20/19(%) [MKD] [MKD] [MKD] Supply with Heat 19,615 20,785 20,849 6,29% 0,30% BE DOOEL ELEM Energetika 19,914 19,438 19,356 -2,80% -0,42% Skopje Sever 22,697 22,588 22,449 -1,09% -0,61%
In 2020, the overall fee with VAT included for end consumers supplied by the District Heating Supply BE DOOEL Skopje, is increased by 0,3 %, i.e., it is practically the same. To consumers of AD ESM – Podruznica Energetika, the fee is reduced by -0,42 %, and to consumers supplied by Skopje Sever AD Skopje the reduction is by -0,61 %. Further below, the history data is enclosed in relation to the average fee on district heating for the District Heating Supply BE DOOEL.
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60.000 50,000
40.000 30,000 MKD 20,000 10.000
Households Education Other
Chart 4.8 Change of district heating fees for the period 2010 – 2020 for District heating Supply BE DOOEL The Chart above-attached, clearly reviews that in the late years there has been a continuant downfall of the price on district heating. Especially, the downfall is recorded by categories of other consumers and the education, where the tariff is gradually reaching the ratio of 1: 1, while in the past it was 1: 2. The category education is already aligned with the level of the category of households, unlike the category of other, where the tariff ratio, now, is 1: 1.4. The decline of the fee on the district heating, contributes to larger number of consumers connections to the system, positive in relation to the system energy efficiency, reduction in the exploitation of electricity for heating purposes, reduction in the burden of the electricity system, as well as in relation to the ecological aspect considering that district heating plants operate on natural gas.
4.4 DEVELOPMENT AND INVESTMENT PLANS IN THE SYSTEMS OF DISTRICT HEATING The aim of the Development and Investment Plans is to provide safe and continuant production, distribution, and supply of district heating, as well to increase efficiency of the systems and of the personnel. The realization of the Development and Investment Plans shall lead to decline of costs required for the systems’ function. The development plans are directed towards safety in the operation of the system elements, monitoring and remote control of operating parameters.
4.4.1 PRODUCTION OF HEAT BE DOOEL SKOPJE The District Heating Production Balkan Enerdzi, in accordance with the Development Strategy, in the forthcoming five-year period, has envisaged investment in the areas listed below: − Modernization and automation of the overall production process, aiming towards management and supervision by centralized SCADA System; − Reconstruction of pumping stations, by increasing their capacity and modernizing the equipment,
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− Improving water quality in the district heating distribution network, − Reconstruction and modernization of the electric plants and the equipment of the heating plants. The target of the envisaged investments is the assurance of secure, safe, continuant and quality production of district heating, and increased efficiency of the entire process. The realization of the envisaged investments and the modernization of the facilities in the Heating Plants, shall prolong the life cycle of the District Heating Plants for the next 20 years.
4.4.2 DISTRIBUTION OF HEAT BE DOOEL SKOPJE The District Heating Distribution Balkan Enerdzi DOOEL, in the period of the forthcoming five years, has envisaged development of the distribution system in the aspects listed below: − Optimization of the distribution system through integration of the distribution network (grid) aiming to fulfil the criteria on efficient central / district heating, in accordance with the European Directives and with the Law on Energy Efficiency; − Capacity growth of the existing grid, and construction of new lines, in accordance with the city development, and the adoption of the new Detailed Urban Plans; − District heating loss reduction during the process of district heating distribution, − Continuing the digitalization and automation process of the district heating distribution network by establishing new additional SCADA points, − Optimization of the district heating distribution process.
4.4.3 AD ESM SKOPJE, PODRUZNICA ENERGETIKA AD ESM Skopje, Podruznica Energetika within the upcoming five years, i.e., in the period from 2021 to 2024, shall forecast investments in basic assets required for production, distribution and supply of district heating, aiming to assure secure, safe and continuant supply of district heating, and reinforcing processes efficiency, by: − Preparing feasibility study for modernization and additional construction project for Energetika estate. − Preparation of a basic project and tender documentation on energy efficiency and photovoltaics, − Construction of solar heating, − Reconstruction of TS Sever and TS Jug, − Reconstruction and modernization of the electricity distribution network, − Additional construction of the cogeneration power plant with a 50 MW gas turbine, − Expansion of the system for hot water and construction of secondary networks, − Metering-processing equipment within the systems for chemical preparation of water.
4.4.4 SKOPJE SEVER AD Skopje
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Skopje Sever AD Skopje is planning to increase the efficiency of processes and of the activity that it performs as well as to increase the capacity of the existing network and to construct new lines in accordance with the new detailed urban plans. District heating production, distribution and supply systems of Skopje Sever AD Skopje and ESM Podruznica Energetika, in the future must dedicate activities to increase the number of consumers connected to their district heating distribution systems, as well as to reduce the production losses in the district heating distribution.
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OIL DERIVATIVES
2020
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V. O I L D E R I V A T I V E S
The market on crude oil, oil derivatives, biofuels, and transportation fuels in the Republic of North Macedonia, is evolving through import and export of crude oil and oil products, transportation of crude oil through oil pipeline, processing of crude oil, production of oil products, production of biofuel, and distribution and sale of oil products. One of the most significant events that have marked 2020 is the drastic price drop of oil in the stock exchanges around the world, especially in the first half of 2020, and all of this is caused by the health crisis because of the corona virus. This year shall be remembered in the sector of oil and oil derivatives as historic in many aspects, and most surprising was the negative price of crude oil WTI (West Texas Intermediate) in April 2020. Covid-19 imposed quarantine, factories were shut down, transport was halted, and people were not allowed to travel. The pandemics has reduced the global demand for approximately 29 million barrels per day compared to the 100 million barrels compared to the 100 million barrels from last year. OPEK and the other producers have agreed to reduce production for 9,7 million barrels per day, which is significantly lower compared to the reduced demand, thus leaving oil excess in the market without consumers. In all this situation, the economy has suffered damage because the majority were not able to work, to produce or to sell their products considering that quarantine was introduced. In the beginning of the year, oil price was approximately 60 USD/barrel and it started to drop, with average monthly price drop of approximately 10 USD/barrel. When the global quarantine started, the price of oil was approximately 20 to 25 USD. The date of April 20th, 2020 shall be remembered as a historical date for the oil industry and the entire world. The price of the oil WTI (West Texas Intermediate), which is the official marker for USA, achieved negative price of - 37 USD/barrel, caused by the inability of the economy and large oil reserves to function normally. With the recuperation of the global economy since June 2020, the price of oil increased and since the beginning of June to the beginning of 2021 the price was stabilized from 55 to 65 USD/barrel, at approximately the same level before the crisis. The trend of price fluctuation of crude oil and oil derivatives in the global stock market, has directly reflected the adoption of decisions on prices by the Energy Regulatory Commission. This year shall be remembered as the first year since the Energy Regulatory Commission started determining the highest retail prices of separate oil derivatives, i.e., since January 1st, 2004 of such an evident, unnoticed before, i.e., drastic price drop of oil derivatives, even larger than the one in autumn 2008, when oil crisis occurred around the world and oil products dropped at record speed. As a result of the trend of continuous price drop of crude oil and oil products in the stock market, and aiming to support economic sustainability in our country, the Government of the Republic of North Macedonia and the Energy Regulatory Commission have adopted a package of economic measures (acts), to amortize the new situation.
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During the state of emergency, the Government adopted a Decree with Force of Law amending he Decree with Force of Law for the application of the Law on Excise* as well as the new Rulebook on the Determination of Retail Prices of Separate Oil Derivatives. Taking into consideration the reduced consumption of oil derivatives in the first half of 2020, that caused certain financial problems in the operation of companies- participants in the oil derivatives market in the Republic of North Macedonia, and to provide financial stability, the Energy Regulatory Commission adopted a new Rulebook on the Determination of Retail Prices of Separate Oil Derivatives, changing certain parameters. It is unknown what shall happen in the future, how long this crisis shall last, and which shall be the consequences upon the economy and economic trends around the world, whether a reduction of oil demand shall occur thus providing use of certain renewable energy sources as important raw fuels.
5.1 OIL SECTOR GENERAL DATA The energy infrastructure of the oil sector in the Republic of North Macedonia enables import, export and transportation of crude oil and oil derivatives, crude oil processing, biofuel production, distribution, transportation, and oil derivatives sale.
5.1.1 CRUDE OIL PROCESSING AND OIL DERIVATIVES PRODUCTION OKTA Refinery was built in 1980 and commenced operations in 1982. The Refinery is designed as a hydro skimming refinery with projected capacity of 2,5 million tons annually, i.e., with 5480 bbl / day. The maximum capacity of 1,36 million tons was reached in 1988. The technology structure refers to numerous processing plants, such as: atmospheric distillation, hydrodesulphurization of primary petroleum, catalytic reforming, high- temperature isomerization, hydrodesulphurization of kerosene, hydrodesulphurization of mid-distillates, and recuperation of liquefied petroleum gas. Since 1999, OKTA Refinery is a Joint Stock Company, with a private majority share package by the strategic investor EL.P.ET Balkanika, Republic of Greece. OKTA Oil Refinery AD Skopje has the capacity to produce unleaded petrol with 95 octanes – Euro V, unleaded gasoline with 98 octanes – Euro V, diesel fuel with 10 ppm Sulphur – Euro V, jet-engine fuel – JET A-1, liquefied petroleum gas (LPG) – a mixture of propane - butane gas with commercial butane. With regards to heating oils, the following is comprised: In addition, the mazut (fuel oil) with 2 % Sulphur, and the extra light oil with 1000 ppm Sulphur for the households. The energy infrastructure in the oil sector in the Republic of North Macedonia, is enclosed in Chart 5.1.
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Chart 5.1 The energy infrastructure in the oil sector in the Republic of North Macedonia
5.1.2 TANSPORTATION OF CRUDE OIL THROUGH OIL PIPELINE In 2002, the Thessaloniki – Skopje oil pipeline commenced its operations with a length of approximately 213,5 km, 16-inch NPS, with transport capacity of 2,5 million tons of oil on annual level. The transportation of crude oil starts from the Terminal HELP.PE.-TIC (Hellenic Petroleum, Industry Complex – Thessaloniki) to the Terminal OKTA. The route of the oil pipeline is continuant between the terminals of the HELP.PE.-TIC and OKTA with 15 block ventilation stations (three located in the Republic of Greece, and 12 located in the Republic of North Macedonia) in providing separate oil pipeline sections. The control and monitoring of the operations by the oil pipeline is organized through the SCADA System. The oil pipeline is managed by the Joint Macedonian – Greek Enterprise VARDAX, with Headquarters in Thessaloniki, and an Office in Skopje.
5.1.3 BIOFUELS PRODUCTION The Refinery of Biofuel production is in ownership by Makpetrol AD Skopje. The Refinery commenced its production in 2007, and the capacity is 30 thousand tons on annual level. To produce the Biodiesel Fuel, the Refinery exploits unrefined oil from rapeseed, purchased by import.
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5.1.4 RETAIL NETWORK There are approximately 372 gas stations, with an ongoing operation in the Republic of North Macedonia. Even though the ownership structure in the retail sector is changed, Makpetrol AD Skopje is the owner of numerous gas stations, i.e., with 127 gas stations. Next is Lukoil Makedonija DOOEL Skopje with 32 gas stations, the OKTA brand with 27 gas stations, while the remaining of approximately 186 gas stations are in private ownership by many domestic small-sized companies. Part of the companies in property of gas stations, along with the main activity for fuel sale to their gas stations, also appear as wholesale traders, i.e., part of the purchased liquid fuels is directly sold to end consumers.
5.1.5 STORAGE CAPACITIES The overall capacity of the oil and oil products reservoirs in the Republic of North Macedonia is approximately of 382 thousand m3. The reservoirs capacities in the Republic of Macedonia are sufficient for 90 days of an ongoing average consumption of each type of oil products. OKTA Oil Refinery AD Skopje, Makpetrol AD Skopje, Lukoil Makedonija DOOEL Skopje, the State Stock Reservoirs of the Republic of North Macedonia, and other small-size private and state stock companies, possess their own reservoirs storage facilities, and they all compose the reservoirs capacities in the Republic of North Macedonia. The formation, storage, restocking and the use of the mandatory stocks of oil and oil derivatives are regulated in accordance with the Law on Mandatory Reserves of Oil and Oil Products, and by the Directives of the European Union.
5.2 OIL AND OIL DERIVATIVES MARKET STATUS The Oil and Oil Derivatives Market in the Republic of Macedonia, along with the regulation prescribed by the Law on Energy*, is also regulated by the laws further listed: the Law on Trade, the Law on Competition Protection, the Law on Customs, the Law on Value Added Tax (VAT), the Law on Excise, and the Law on Market Inspection. Besides the mentioned laws, the Oil and Oil Derivatives Market, also underlines regulation with the Rulebook on Liquid Fuels Quality, the Technical regulations (storage and transportation of oil derivatives, standards, etc.), as well with the ratified international agreements: the Stabilization and Association Agreement with the European Union, the Energy Charter Treaty, and the Treaty establishing the Energy Community. In addition, great influence on the relations within this market, is the accession of our country to the World Trade Organization.
5.2.1 MARKET PARTICIPANTS Pursuant to the Law on Energy*, activities in the field of crude oil, oil derivatives, biofuels, and transportation fuels, shall refer to: − crude oil processing and oil derivatives production;
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− Production of fuels designated for transportation, with mixture of fossil fuels and biofuels; − transportation of crude oil through oil pipelines; − transport of oil derivatives via product lines; − wholesale trade of crude oil, oil derivatives, biofuels, and transportation fuels. The above-mentioned activities are subject to performance by domestic and / or foreign entities under issued licenses by the Energy Regulatory Commission. Within this Sector is the import and export of crude oil and oil products, the transportation of crude oil through oil pipeline, the crude oil processing, the biofuel production, the oil products distribution, and sale. Relations among participants on the market, are displayed in the Chart below.
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Chart 5.2 Interrelations of participants on Oil and Oil Derivatives Market in the country
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5.2.2 PRODUCTION, PURCHASE AND SALE OF OIL DERIVATIVES In the Republic of North Macedonia, the Crude Oil and Oil Derivatives Market, i.e., the supply and sale thereof, is monitored by the Energy Regulatory Commission on regular basis, through monthly and annual reports submitted by the licensed entities to the Energy Regulatory Commission, in accordance with the issued licenses. The Oil and Oil Derivatives Market comprises numerous participants, i.e., Energy Activity Performers, and there is a balance in the offer and demand, despite the dominant role by some participants in certain segments of the market. In 2020, OKTA Oil Refinery AD Skopje did not import crude oil in the Republic of North Macedonia, and due to that there wasn’t processing of crude oil and production of oil derivatives on the domestic market. The participation percentage of traders in the total import of oil derivatives in the country in 2020 is displayed in Chart 5.3.
MARIJA TRADE 0.000
UNION - GAS IVEL 0.000
SHIMOV 0.000 RKM 0.039 EUROPETROL MT 0.000
NAS MBD 0.223 AVTO-SEL 0.282 MOBI PETROL 0.000 GULIVER 0.278
TOP-TRADE 0.000 GPOIL 0.471 EKONIK MARKET 0.586
LI-OIL 0.152
PERTINAKS 0.507 TRITEROL PETROL 0.223 BASHINO-GAS 0.911
OMPETROL 2.519
EVROTIM 2.206 JAVOR SHPED 0.000 PUCKO PETROL 0.000
DETOIL 2.430
CRNA REKA... 1.445 DADI OIL 0.985 LUKOIL 8.499
SUPERTREJD 10.431 OKTA 66,775 MAKPETROL 1.039 0,000 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 ( %)
5.3 participation percentage of traders in the total import of oil derivatives in the country in 2020 (tons/ annually)
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In 2020, the overall import of oil derivatives in the Republic of North Macedonia is 969.936 tons, which is by 15,16 % lower than the imported oil derivatives in 2019 (1.143.276 tons). The largest importer is still OKTA Oil Refinery AD Skopje, participating with 66,78 %, followed by Super Trejd Skopje with 10,43 %, Lukoil Makedonija DOOEL - Skopje with 8,50 %, OM Petrol Skopje with 2,52 %, DETOIL - Kumanovo with 2,43 % and other traders with less than 10 % participation in the overall import of oil derivatives in 2020. In 2020, the largest import is on diesel fuel, i.e., 63,82 % of the overall import, followed by the import of unleaded petrol types with 12,31%, the mazut (fuel oil) with 8,21 %, the propane – butane (LPG) with 6,67%, the extra light fuel (EL-1) with 3,95%, the jet fuel with 5,04%, and a rather small percentage of biofuel import (Chart 5.4).
1,200,000 78 57,617 1,100,000
76,234
151 1,000,000 39,306 93,887
19,247 72,947 60,893
45,115 900,000 66,228 90,170
800,000 43,907 37,754
700.000 tons
600,000 729,598
500,000 652,082 653,946
400,000
300,000
200,000 2018 2019 2020 Motor fuel Diesel fuel Extra light 1 (EL-1) Mazut LPG Jet-fuel Biofuel
Chart 5.4 Oil derivatives Import in the RN\0 M for 2018, 2019, and 2020 (tons/annually) The above-attached Chart review indicates that the import of oil derivatives in 2020 records significant decrease in relation with the previous year. The decrease of petrol imported quantities is by 24,12% lower in relation to 2019, while the diesel fuels import in 2020 has decreased by 10,37% compared to the previous year. Significant reduction, in 2020, by even 66,60% is recorded in the import of mazut fuel oil (as compared to 2019, while the LPG records reduction by 20,12 %.
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In 2020, the largest import is on diesel fuel, i.e., 67,43 % of the overall import, followed by the import of unleaded petrol types with 11,01%, the mazut (fuel oil) with 9,30 %, the propane – butane (LPG) with 6,28%, the extra light fuel (EL-1) with 3,89%, the jet fuel with 1,98%, and a rather small percentage of biofuel import (Chart 5.5).
Biodiesel 1.019
LPG 60.892
Jet-fuel 19.247
Mazut 90.168
ELM 37.754
Diesel 653.975
Gasoline 106.806
0 100.000 200.000 300.000 400.000 500.000 600.000 700.000 Tons Chart 5.5 Oil derivatives Import in 2020 (tons) During 2020, in the Republic of North Macedonia, the import of oil derivatives by wholesale traders with crude oil, oil derivatives, biofuels and transportation fuels was made from 11 countries (Chart 5.6), whereby, largest quantities of oil derivatives were imported from the neighboring countries, such as Greece with 79,46%, Bulgaria with 10,73 %, Albania with 3,54 %, Serbia with 3,04 %, Bosnia and Herzegovina with 1,92 %, Romania 0,78 % and a small percentage of import from other countries.
Kosovo Slovakia Slovenia Russian Federation Serbia Romania Greece Bulgaria Bosnia and Herzegovina Austria Albania
0 100.000 200.000 300.000 400.000 500.000 600.000 700.000 800.000 900.000 Gasoline (t) 106.806 Diesel (t) 653.975 Extra Light Oil (t) 37.754 Mazut (t) 90.168 Jet fuel (t) 19.247 LPG (t) 60.892 FAME t 1.019
Chart 5.6 Import of certain oil derivatives in 2020 (tons)
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The purchase and sale of oil derivatives in the Republic of North Macedonia, during 2020, was actively performed by 27 legal entities licensed for wholesale trade with crude oil, oil derivatives, biofuels and transportation fuels. The Chart below reveals each share in the overall purchase of oil derivatives in the country in 2020.
MARIJA TRADE UNION - GAS IVEL SHIMOV RKM EUROPETROL MT NAS MBD AVTO-SEL MOBI PETROL GULIVER TOP-TRADE GPOIL EKONIK MARKET LI-OIL PERTINAKS TRITEROL PETROL BASHINO-GAS OMPETROL EVROTIM JAVOR SHPED PUCKO PETROL DETOIL CRNA REKA PETROL DADI OIL LUKOIL SUPETREJD OKTA MAKPETROL
0 100000 200000 300000 400000 500000 600000 700000
import (tons) Purchase from traders (tons)
Chart 5.7 Share of participants in the overall purchase of oil derivatives in the country in 2020 The Export of oil derivatives in 2020 is 153.167 tons and compared to 2019 (194.417 tons) is increased by 21,22 %. The largest exporter of oil derivatives in 2020, is OKTA Oil Refinery AD Skopje with 93,30 %, Makpetrol AD – Skopje with 4,74%, OM Petrol Skopje with 0,83%, and the export with 1,13 % made by other traders.
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The sale of oil derivatives in the domestic market, in the period from 2018-2020 is displayed in Chart 5.8, and in the year of 2020 the sale was 811.698 tons, indicating decrease by 13,50% in relation to the oil derivatives sale in 2019 (938.356 tons).
1000000
800000
600000 tons
400000
200000
0 2018 2019 2020
Extra light 1 (EL-1) Mazut Propane-butane (LPG) Jet-fuel Biofuel
Gasoline Diesel fuel
Chart 5.8 Sale of oil derivatives on Domestic Market in 2018, 2019, and 2020 (tons/annually) In 2020, the sale of oil derivatives, except for mazut, has recorded a significant decrease compared to 2019. The largest decrease is registered in gasoline consumption with 26,77 %, diesel consumption has recorded a decrease by 12,46 %, the Extra Light Oil (EL-1) the decrease is by 12,99 %, while in 2020, increase in consumption is noticed for Mazut, with an increase by 1,65 % higher than the sale in 2019. The share of oil derivatives in the overall consumption of oil derivatives in the country in 2020 is displayed in Chart 5.9.
Propane-butane Biodiesel Jet fuel (LPG) 7,36% 0,10% 0,08% Мazut М1-SU 9,05% Gasoline 9,33%
Extra Light 1 (EL-1) 4,76%
Diesel fuel 69,32%
Chart 5.9 Share of oil derivatives in the overall consumption of oil derivatives in the Republic of North Macedonia in 2020
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In 2020, the diesel fuels by 69,32 % dominate in consumption of oil derivatives on the domestic market, followed by the consumption of unleaded petroleum with a share of 9,33 %, mazut (fuel oil) with 9,05 %, and liquefied petroleum gas with 7,36%. Next are the extra light oil (EL-1) with 4,76 %, the biofuel with 0,10 %, and the jet fuel with 0,08 %. The individual participation by wholesale traders with crude oil, oil derivatives, biofuel, and transportation fuels, in the wholesale and retail sale of oil derivatives in our country during 2020, including their export, is displayed in the Chart 5.10 below.
MARIJA TRADE UNION - GAS IVEL SHIMOV RKM EUROPETROL MT NAS MBD AVTO-SEL MOBI PETROL GULIVER TOP-TRADE GPOIL EKONIK MARKET LI-OIL PERTINAKS TRITEROL PETROL BASHINO-GAS OMPETROL EVROTIM JAVOR SHPED PUCKO PETROL DETOIL CRNA REKA PETROL DADI OIL LUKOIL SUPETREJD OKTA MAKPETROL
- 50.000 100.000 150.000 200.000 250.000
Export (tons) Wholesale trade (tons) retail trade (tons)
Chart 5.10 Overall sale of oil derivatives per traders, import included in 2020 The review reveals that dominant share in the overall sale is made by Makpetrol AD Skopje, followed by OKTA Oil Refinery AD Skopje, Supertrejd, Lukoil, Dadi Oil, Crna Reka Petrol, Detoil, Pucko Petrol, and other small-size wholesale traders with oil derivatives. - In the wholesale trade, Supertrejd and OKTA are with dominant share of 19,22 % or 18,55 %, respectively. - In the retail trade, Makpetrol is with dominant share of 42,19 %, followed by Lukoil with 14,41 % and Supertrejd with 10,64 %, whereas the three companies together are with 67,24 % share in the retail trade. The table below provides review of crude oil purchase, as well as purchase and sale of oil derivatives in 2020.
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Table 5.1 Review of crude oil purchase, as well as purchase and sale of oil derivatives2020 in tons
Status of PURCHASE SALE Status of stock / TOTAL stock / Type of oil and oil reserves at Available reserves at derivative the beginning the end of of year year in the country TOTAL in the TOTAL
Purchased country EXPORT Sale IMPORT OKTA - TOTAL Gas End Refinery stations consumer Production (3+4) (2+5) (7+8) (9+10) (6-11) s 1 2 3 4 5 6 7 8 9 10 11 12
Crude oil ------4,914 Gasoline - 106,806 106,806 111,720 64,788 10,935 75,723 29,906 105,629 6,092 19,836 Diesel fuel - 653,946 653,946 673,782 366,622 196,028 562,650 86,769 649,419 24,363 3,063 Extra Light 1 (EL-1) - 37,754 37,754 40,817 4,937 33,724 38,661 - 38,661 2,157 3,257 Мazut М1-NS - 90,270 90,270 93,527 - 73,430 73,430 17,129 90,559 2,969
Propane-butane (LPG) 2,489 - 60,893 60,893 63,382 39,772 19,972 59,744 1,297 61,041 2,341
Jet fuel 2,469 - 19,247 19,247 21,716 - 664 664 18,067 18,731 2,985
Biodiesel 487 - 1,019 1,019 1,143 814 12 826 - 826 317
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5.3 APPROVED PRICES ON CERTAIN OIL DERIVATIVES In accordance with the Article 24 and 28 of the Law on Energy*, on May 23rd, 2019, the Energy Regulatory Commission has adopted the Rulebook on the Formation of Highest Retail Prices of Certain Oil Derivatives and Transport Fuels, published in the Official Gazette of the Republic of North Macedonia'’ no. 103/19 (hereinafter: Rulebook). The Rulebook provided application of a new methodology based on real events in the oil and oil derivatives market in the Republic of Macedonia, for the first time in 20 years of application of the Methodology on the Determination of the Highest Prices of Certain Oil Derivatives, defined by the Annex D of the Purchase Contract for Shares and Concessions with the Refinery AD “OKTA” – Skopje. The Rulebook mirrors the manner of functioning of the market on oil products sale and purchase in our country and abroad by wholesale traders with crude oil, oil derivatives, biofuels, and transport fuels. The new access provides stability and predictability in the formation of retail prices of oil derivatives and transport fuels, as well as transparency in the procedure on the determination of retail prices of oil derivatives. In this period of Rulebook application, based on the data received by monitoring market status and functioning, the Energy Regulatory Commission was able to analyze the influence of the market upon the operation of wholesale traders with crude oil and oil derivatives and in accordance with it, it can be concluded that the defined elements in the Rulebook provide: • Balance of interests of the performers and of energy activities and of consumers, • Consumer protection from all kinds of abuse of dominant position in the market and • Creation of measures for stimulating efficient operation of the performers of energy activities in the market of crude oil and oil derivatives, by compensating their costs and achieving an adequate return on capital. In accordance with the provisions stipulated in the Rulebook, every seven days highest retail prices shall be established on certain oil derivatives, under individual determination of: - Highest purchase prices (based on stock exchange prices on oil products published in the Platt’s European Marketscan, parity FOB Med), - Fees on operation through storage and trade margin including transportation costs from storage to gas stations and end consumers, - Values of specific excises, and other fees established by law and other secondary legislation. Respecting all above-mentioned parameters, and the existing law acts in the country on liquid fuels, the Energy Regulatory Commission shall establish prices on certain oil derivatives on every seven days.
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On April 24th, 2020, the Energy Regulatory Commission adopted the Rulebook on Highest Retail Prices Formation on Certain Oil Derivatives and Transportation Fuels, published in the “Official Gazette of the Republic of North Macedonia”, no. 108/20. The urgency for adopting this Rulebook derived from the economic situation in April,2020, caused by the health crisis resulting from Corona virus, as well as the adoption of the Decree with Force of Law on the application of the Law on Excise* during the state of emergency, which directly influenced the market of oil and oil derivatives thus influencing the manner of price formation for the same. Having in mind that the specific excises listed in the Law on Excises, and the Decree with Force of Law for amending the Decree on the application of the Law on Excise* during the state of emergency have had constant amount and they were not variable anymore, it was necessary to provide in the Rulebook on the Highest Retail Price Formation of Certain Oil Derivatives and Transport Fuels a deviation of the trade margin at a wider range from the determined nominal trade margin, in order to round up the highest retail prices. On April 24th, 2020, the Energy Regulatory Commission adopted the Rulebook on Highest Retail Prices Formation on Certain Oil Derivatives and Transportation Fuels, (“Official Gazette of the Republic of North Macedonia”, no. 108/20), changing the trade margin and the value of the density of oil derivatives. The Energy Regulatory Commission has also considered the fact that the consumption of fuels in the Republic of North Macedonia is by 40% lower in the period from March-April 2020, because of the Covid-19 pandemics, thus the revenues of participants in the oil derivatives market were reduced. Expecting that the reduced consumption of oil derivatives shall continue in the following months after April 2020, thus causing financial problems in the operation of companies - market participants with oil derivatives in the Republic of North Macedonia, and in order to provide their financial stability, the Energy Regulatory Commission estimated that it is necessary to increase the trade margin by 0,2 MKD/l, i.e., to increase the margin by 3,57 %, hence, beside the effect of reduced revenues because of the reduced consumption of derivatives by 40 %, the effect of the reduction of retail prices of oil derivatives was compensated, i.e., neutralized because the value of the density of derivatives in the Rulebook was reduced by 2,6 %. In May 22d, 2020, the Energy Regulatory Commission adopted the Rulebook on amending the Rulebook on Highest Retail Price Formation of Certain Oil Derivatives and Transport Fuels, published in the '’Official Gazette of the Republic of North Macedonia'’ no. 133/20. The amendments of the Rulebook provided changes and supplements in the manner of calculation, publication and application of the highest retail prices of certain oil derivatives and transport fuels in the market of crude oil, oil derivatives and transport fuels in the Republic of North Macedonia. In addition, the deescalated density of oil derivatives was introduced, which are determined based on the data received by the Customs Administration regarding average values of densities from the certificates of the quality of oil derivatives, which are submitted by the traders with oil derivatives during import of derivatives and based on which they pay the excise. Based on the received data
Annual Report on operations of the ERC in 2020 - 140 -
from monitoring market status and functioning, as well as the documentation delivered by companies that are participants in the oil derivatives market, the escalated densities of oil derivatives were defined, which are used in the financial and commercial operation of companies. Based on the received data from monitoring market status and functioning, trade margin was reduced by 0,3 MKD/l, i.e., by 5,17 % compared to the amount of the trade margin in the Rulebook on Highest Retail Price Formation of Certain Oil Derivatives and Transport Fuels (Official Gazette of the Republic of North Macedonia'’ no. 108/20), date April 24th, 2020. By reducing the trade margin, the effect of the increase of oil derivatives retail prices was compensated, i.e., neutralized because escalated densities of oil derivatives were introduced. In October 22nd, 2020, the Energy Regulatory Commission adopted the Decision on the Determination of the Escalated Density е and de-escalated density d, of each oil derivative and transport fuel, the amount of compensation P for premium, transportation costs T to the storage in the Republic of North Macedonia and the amount of compensation D for the costs of operations through the storage and trade margin, including transportation costs from the depot to the gas stations and to the consumers in last resort. This decision was adopted in accordance with Article 5 if the Rulebook on Highest Retail Prices Formation on Certain Oil Derivatives and Transportation Fuels, (” Official Gazette of the Republic of North Macedonia”, no. 108/20 and 133/20), which defines that based on the data from the Customs Administration of the Republic of North Macedonia,, as well as the data received from monitoring market status and functioning, twice a year, the Energy Regulatory Commission shall adopt a decision on the determination of the density of each oil derivative and transportation fuel, except for mazut M-1, as well as on the amount of the compensation P for premium including transport costs to the storage in the Republic of North Macedonia and the amount of compensation D for operating costs through the storage and the trade margin with included transport costs from the storage to gas stations and to end consumers. The decision is adopted not later than the last Monday in April in the current year, for the period from the last Monday in April of the current year, to the last Monday in October in the current year, and not later than the last Monday in October for the period from the last Monday in October in the current year to the last Monday in April of the following year. The decision from the date of October 22nd, 2020, contains all values of separate parameters as well as the Rulebook on the Highest Retail Price Formation of Certain Oil Derivatives and Transportation Fuels, published in the “Official Gazette of the Republic of North Macedonia'’ no. 133/20 date May 22nd, 2020, except for the deescalated densities which are calculated based on the values received from the Customs Administration of the Republic of North Macedonia. Table 5.2 provides average stock exchange prices of reference oil derivatives and the middle rate of MKD/USD in 2020, and Chart 5.11 displays adequate diagrams. Table 5.2 Average stock exchange prices of reference oil derivatives and middle rate of MKD/USD in 2020 Prem Unl 10ppm 10ppm ULSD Gasoil 0.1 % Fuel Oil 1.0 % MKD/USD Date: ($/t) ($/t) ($/t) ($/t) (NBM) 08.1.2020 596,400 601,750 591,600 475,600 54,9019 13.1.2020 590,900 590,300 580,800 501,000 55,2356 20.1.2020 587,600 562,000 552,850 461,800 55,2594 27.1.2020 575,500 546,600 538,650 437,150 55,4518
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03.2.2020 546,700 507,550 498,600 410,150 55,9523 10.2.2020 535,300 492,150 480,200 380,000 55,8842 17.2.2020 537,150 498,000 483,250 379,100 56,4409 24.2.2020 551,550 505,000 494,150 381,800 56,8881 02.3.2020 494,200 456,400 447,350 335,900 56,6888 09.3.2020 463,100 441,600 431,450 321,700 55,5556 16.3.2020 324,000 345,150 339,100 222,300 54,3510 23.3.2020 214,300 278,100 271,350 164,350 56,1177 30.3.2020 182,800 280,700 269,600 162,800 56,9805 06.4.2020 180,300 263,600 249,450 152,000 56,2827 13.4.2020 188,300 267,200 241,150 181,150 56,9161 21.4.2020 190,000 237,300 198,100 168,450 56,4852 27.4.2020 143,350 161,600 135,750 134,350 56,8607 04.5.2020 155,100 156,200 139,300 122,350 56,8655 11.5.2020 228,900 220,450 193,200 152,600 56,8513 18.5.2020 241,800 244,350 219,550 172,150 56,9074 26.5.2020 299,000 285,250 265,350 206,050 56,5651 01.6.2020 293,350 277,850 264,650 204,900 56,3029 08.6.2020 326,500 306,800 295,400 231,400 55,2147 15.6.2020 353,450 327,250 318,500 239,450 54,5490 22.6.2020 373,000 344,450 337,500 246,000 54,7735 29.6.2020 382,600 349,850 343,850 252,050 54,8693 06.7.2020 379,400 358,100 349,750 254,250 54,9081 13.7.2020 393,850 371,850 361,400 265,350 54,6300 20.7.2020 390,400 368,350 356,650 261,450 54,3398 27.7.2020 393,600 377,450 366,600 263,250 53,6820 04.8.2020 380,200 368,350 357,850 264,200 52,6843 10.8.2020 388,800 372,200 361,600 274,500 52,1452 17.08.2020 403,100 369,700 360,000 277,300 52,3138 24.08.2020 408,550 368,350 357,450 278,300 51,9719 31.08.2020 418,900 363,500 357,400 280,350 52,2620 07.09.2020 405,900 343,050 338,250 273,350 51,9276 14.09.2020 381,750 308,750 307,000 248,700 52,1851 21.09.2020 399,550 320,150 315,500 262,100 52,0303 28.09.2020 392,000 317,850 314,400 264,350 52,5555 05.10.2020 389,200 322,500 319,550 267,850 52,7620 13.10.2020 397,550 339,900 337,650 284,500 52,4369 19.10.2020 387,550 340,150 336,250 282,700 52,4398 26.10.2020 378,350 335,000 328,300 286,850 52,2766 02.11.2020 348,300 313,900 305,550 268,300 52,3714 09.11.2020 353,250 319,600 312,150 272,500 52,6173 16.11.2020 383,500 348,850 346,350 297,950 52,1802 Annual Report on operations of the ERC in 2020 - 142 -
23.11.2020 375,300 353,900 353,000 297,050 52,0837 30.11.2020 402,950 383,800 383,250 314,950 51,9156 07.12.2020 407,150 389,650 388,650 317,250 51,3402 14.12.2020 423,850 406,600 404,450 319,600 50,8706 21.12.2020 440,450 418,150 418,250 330,300 50,6831 28.12.2020 442,150 421,350 415,550 329,150 50,5453
700.000
600.000
500.000
400.000
ton) -
($ 300.000
200.000
100.000
0.000
Prem Unl 10ppm 10ppm ULSD Gasoil 0.1 % Fuel Oil 1.0 % MKD/USD (NBM)
Chart 5.11 Average prices in the stock market of reference oil derivatives and middle rate of MKD/USD in 2020
Retail prices of oil derivatives in 2020 are provided in Table 5.3, and Chart 5.12 provides respective diagrams. Table 5.3 Retail prices of oil derivatives in 2020 BMB BS-95 BMB BS-98 D-E V ЕL-1 M - 1 HS Date: (ден/лит) (ден/лит) (ден/лит) (ден/лит) (ден/кг) 08.1.2020 68,00 70,00 62,50 51,50 38,548 13.1.2020 68,00 70,00 62,50 51,50 40,424 20.1.2020 68,00 70,00 61,00 50,00 37,885 27.1.2020 67,50 69,50 60,00 49,00 36,395 03.2.2020 66,00 68,50 58,00 47,50 34,922 10.2.2020 65,50 67,50 57,50 46,00 32,894 17.2.2020 66,00 68,00 58,00 46,50 33,140 24.2.2020 67,00 69,00 58,50 47,50 33,565 02.3.2020 64,00 66,00 56,00 45,00 30,390 09.3.2020 62,00 64,00 54,50 43,50 28,895 16.3.2020 54,50 56,50 48,50 37,50 21,934 23.3.2020 49,50 52,00 45,50 34,50 18,738 30.3.2020 48,50 50,50 46,00 35,00 18,891
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06.4.2020 48,00 50,00 45,00 33,50 17,970 13.4.2020 48,50 50,50 45,00 33,00 20,106 21.4.2020 52,00 54,00 46,50 34,00 19,123 27.4.2020 49,50 52,00 42,50 30,50 16,945 04.5.2020 50,50 52,50 42,00 31,00 16,143 11.5.2020 54,00 56,00 45,50 33,50 18,169 18.5.2020 54,50 57,00 47,00 35,00 19,498 26.5.2020 57,50 59,50 49,50 37,50 23,427 01.6.2020 57,00 59,00 49,00 37,50 23,260 08.6.2020 58,00 60,50 50,00 39,00 24,613 15.6.2020 59,50 61,50 51,00 40,00 24,886 22.6.2020 60,50 62,50 52,00 41,00 25,396 29.6.2020 61,00 63,00 52,50 52,00 25,824 06.7.2020 60,50 63,00 52,50 52,50 25,980 13.7.2020 61,50 63,50 53,50 53,00 26,585 20.7.2020 60,00 62,00 53,00 52,50 26,215 27.7.2020 59,50 61,50 53,00 53,00 26,060 04.8.2020 60,00 62,00 52,50 52,00 25,709 10.8.2020 60,00 62,00 52,50 52,00 26,121 17.08.2020 59,50 61,50 52,00 52,00 26,365 24.08.2020 59,50 61,50 52,00 51,50 26,280 31.08.2020 60,00 62,00 52,00 51,50 26,531 07.09.2020 59,50 61,50 50,50 50,50 25,956 14.09.2020 58,50 60,50 49,00 49,00 24,549 21.09.2020 60,50 62,50 49,50 49,50 25,311 28.09.2020 60,50 62,50 49,50 49,50 23,896 05.10.2020 59,00 61,00 50,00 50,00 24,199 13.10.2020 59,50 61,50 50,50 50,50 26,863 19.10.2020 59,00 61,00 50,50 50,50 26,754 26.10.2020 58,50 60,50 50,50 50,00 26,938 02.11.2020 58,00 60,00 49,50 49,00 25,831 09.11.2020 58,50 60,50 49,50 49,50 26,196 16.11.2020 60,00 61,50 51,00 51,00 27,580 23.11.2020 59,50 61,50 51,50 51,50 27,481 30.11.2020 60,50 62,50 53,00 53,00 28,501 07.12.2020 59,50 61,00 53,00 53,00 28,368 14.12.2020 60,00 62,00 53,50 53,50 28,287 21.12.2020 60,50 62,50 53,00 53,00 28,837 28.12.2020 60,50 62,50 53,00 52,50 28,701
Annual Report on operations of the ERC in 2020 - 144 -
80.00
70.00 60.00
50.00
40.00 30.00
20.00 10.00
0.00
EUROSUPER BS - 95 EUROSUPER BS - 98 EURODIESEL BS (D-Е V) EL-1 Mazut NS (М-1) (MKD/kg)
Chart 5.12 Movement of retail prices of oil derivatives in 2020
Annual Report on operations of the ERC in 2020 - 145 -
Purchase prices of oil derivatives in 2020 are provided in Table 5.4, and Chart 5.13 provides respective diagrams. Table 5.4 Purchase prices of oil derivatives in 2020
BMB BS-95 BMB BS-98 D-E V ЕL-1 M - 1 HS Date: (MKD/l) (MKD/l) (MKD/l) (MKD/l) (MKD/ kg) 08.1.2020 28.54 30.28 31.30 30.93 30.778 13.1.2020 28.48 30.23 30.96 30.61 32.368 20.1.2020 28.35 30.11 29.65 29.32 30.216 27.1.2020 27.95 29.70 29.03 28.75 28.953 03.2.2020 26.98 28.76 27.45 27.12 27.705 10.2.2020 26.47 28.24 26.69 26.22 25.986 17.2.2020 26.81 28.60 27.23 26.62 26.195 24.2.2020 27.64 29.45 27.79 27.36 26.555 02.3.2020 25.09 26.89 25.36 25.03 23.864 09.3.2020 23.29 25.05 24.16 23.78 22.597 16.3.2020 17.06 18.79 19.20 19.01 16.698 23.3.2020 12.97 14.75 16.65 16.42 13.990 30.3.2020 11.82 13.63 17.03 16.59 14.119 06.4.2020 11.57 13.36 16.01 15.43 13.339 13.4.2020 12.05 13.85 16.36 15.21 15.149 21.4.2020 12.03 13.82 14.81 13.04 14.316 27.4.2020 9.92 11.76 10.97 9.87 12.470 04.5.2020 10.41 12.26 10.73 10.04 11.791 11.5.2020 13.52 15.39 13.73 12.57 13.507 18.5.2020 14.08 15.95 14.86 13.81 14.634 26.5.2020 16.68 18.48 17.10 16.25 16.463 01.6.2020 16.37 18.16 16.67 16.14 16.322 08.6.2020 17.43 19.18 17.69 17.26 17.468 15.6.2020 18.33 20.07 18.43 18.12 17.700 22.6.2020 19.22 20.96 19.30 19.07 18.132 29.6.2020 19.65 21.39 19.58 19.40 18.495 06.7.2020 19.53 21.27 19.98 19.68 18.627 13.7.2020 20.02 21.76 20.51 20.12 19.140 20.7.2020 19.78 21.51 20.24 19.80 18.826 27.7.2020 19.67 21.37 20.41 20.01 18.695 04.8.2020 18.77 20.44 19.63 19.25 18.397 10.8.2020 18.92 20.57 19.60 19.22 18.746 17.08.2020 19.54 21.20 19.55 19.21 18.953 24.08.2020 19.63 21.28 19.36 18.97 18.881 31.08.2020 20.14 21.81 19.25 19.07 19.094 07.09.2020 19.51 21.16 18.23 18.11 18.607 14.09.2020 18.65 20.31 16.81 16.82 17.414 21.09.2020 19.30 20.95 17.26 17.15 18.060 28.09.2020 19.19 20.86 17.34 17.27 18.361 05.10.2020 19.16 20.83 17.61 17.57 18.617 13.10.2020 19.37 21.03 18.27 18.26 19.375 19.10.2020 18.97 20.64 18.28 18.20 19.283 26.10.2020 18.55 20.21 18.00 17.79 19.439 02.11.2020 17.40 19.06 17.10 16.82 18.501 09.11.2020 17.68 19.35 17.43 17.19 18.810 16.11.2020 18.72 20.38 18.58 18.56 19.983
Annual Report on operations of the ERC in 2020 - 146 -
23.11.2020 18.37 20.02 18.77 18.81 19.899 30.11.2020 19.39 21.04 20.02 20.08 20.763 07.12.2020 19.34 20.97 20.05 20.09 20.651 14.12.2020 19.81 21.42 20.60 20.59 20.582 21.12.2020 20.37 21.98 21.01 21.10 21.048 28.12.2020 20.38 21.98 21.09 20.93 20.933
35.00
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25.00
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15.00
10.00
5.00
0,00
EUROSUPER BS - 95 EUROSUPER BS - 98 EURODIESEL BS (D-Е V) EL-1 Mazut NS (М-1) (MKD/kg)
Chart 5.13 Movement of retail prices of oil derivatives in 2020
Average percentage of shares of certain elements in the structure of retail prices of oil derivatives in 2020 is enclosed in Chart 5.14 while average amounts of certain elements in the structure of retail prices for oil derivatives in 2020 are displayed in Chart 5.15. Retail prices of EURODIESEL and EUROSUPER BS – 95 in N. Macedonia are lowest, compared to the countries in the region and EU countries (according to https://ec.europa.eu/energy/data-analysis/weekly-oil-bulletin_en date 14.12.2020) which is evident from the data in Table 5.5.
Annual Report on operations of the ERC in 2020 - 147 -
Table 5.5 Retail prices of EURODIESEL and EUROSUPER BS – 95 in N. Macedonia and in EU countries (according to https://ec.europa.eu/energy/data-analysis/weekly-oil- bulletin_en date 14.12.2020)
Eurodiesel (EUR/l) Eurosuper BS – 95 (EUR/l)
N. Macedonia 0.869 0.974
Austria 1.041 1.072
Bulgaria 0.883 0.895
Croatia 1.175 1.208
Germany 1.097 1.257
Greece 1.153 1.427
Italy 1.288 1.413
Hungary 1.092 1.038
Slovenia 1.059 0.988
The duties toward the state as a share in the retail prices of Eurodiesel and Eurosuper BS-95 in N. Macedonia are lowest, compared to the countries in the region and EU countries (according to https://ec.europa.eu/energy/data-analysis/weekly-oil- bulletin_en date 14.12.2020) which is evident from the data in Table 5.6. Table 5.6 Duties toward the state for Eurodiesel and Eurosuper BS – 95 in N. Macedonia and in EU countries (according to https://ec.europa.eu/energy/data- analysis/weekly-oil- bulletin_en date 14.12.2020)
Countries Eurodiesel (EUR/l) Eurosuper BS – 95 (EUR/l)
N. Macedonia 0.432 0.549
Austria 0.579 0.668
Bulgaria 0.478 0.512
Croatia 0.641 0.754
Germany 0.622 0.828
Greece 0.642 0.985
Italy 0.849 0.984
Hungary 0.584 0.586
Slovenia 0.655 0.626
Annual Report on operations of the ERC in 2020 - 148 -
100.000 18.759
43.181 80.000 49.640 7.459 57.055 55.641
60.000 14.358 12.305 40.000 10.784 10.416 73.782
38.054 42.461 20.000 32.161 33.944
0.000 BMB BS-95 BMB BS-98 D-E V ЕL-1 M - 1 HS
% of share in duties toward the state % of trade margins and transportation for traders
Chart 5.14 Average percentage participation of certain elements in the structure of retail prices of oil derivatives in 2020
70.000
60.000
1) - 50.000 34.064 33.767 40.000 25.641 19.913
30.000 4.950 6.382 6.377 6.356 6.621 1.968 20.000 (MKD/l; MKD/kg for М (MKD/l; 20.781 19.657 19.581 10.000 19.034 19.468
0.000 BMB BS-95 BMB BS-98 D-E V ЕL-1 M - 1 HS Average amount of duties for the state Average amount of the trade margins and transportation for traders average purchase price
Chart 5.15 Average amount of certain elements in the structure of retail prices of oil derivatives in 2020
Annual Report on operations of the ERC in 2020 - 149 -
Annual Report the in operations on of 2020 ERC 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 0.00
09.1.2018
09.2.2018
09.3.2018 OF RETAILMOVEMENT PRICESPERIODSELLING ON OIL IN FROM 2018 DERIVATIVES THE 2020TO
09.4.2018 09.5.2018
09.6.2018 09.7.2018
09.8.2018
09.9.2018
09.10.2018
09.11.2018 09.12.2018 BMB 95 BMB 09.1.2019
09.2.2019 09.3.2019
Diesel 09.4.2019
09.5.2019
09.6.2019
Extra Light 09.7.2019
09.8.2019
09.9.2019
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150 09.10.2019
09.11.2019 -
Mazut 09.12.2019
09.1.2020
09.2.2020 09.3.2020
09.4.2020 09.5.2020
09.6.2020 09.7.2020
09.8.2020
09.9.2020 09.10.2020
09.11.2020 09.12.2020
MARKET CONCENTRATION
2020
Annual Report on operations of the ERC in 2020 - 151 -
V I . M A R K E T C O N C E N T R A T I O N
The Energy Regulatory Commission, for the second time in a row within this Annual Report, shall publish the HHI (Herfindahl-Hirschman Index), the Market Concentration Assessment Indexes for electricity, natural gas, and oil derivatives markets. The HHI index is one of the key indicators in the assessment of market concentration and is one of the indicators recommended by the CEER for the assessment of the functionality of electricity and natural gas retail markets. The classification is developed in accordance with the Horizontal Merger Guidelines, published by the U.S Department of Justice and the Federal Trade Commission.
Table 6.1 Indicators on market concentration in 2020
Overall Number of share of Activity HHI Classification market market participants participants with a share with a share over 5% over 5% Retail oil Unconcentrated derivatives 1,385 6 76.03 industry
Electricity wholesale 1,717 Moderate concentration 6 85.60
Electricity sale to end consumers 2,932 High concentration 4 83.14
Natural gas retail 5,021 High concentration 3 98.39 sale
The presented data enclosed in the Table above, reveal that the lowest market concentration, i.e., the status of unconcentrated industry in 2020 is on the retail market of oil derivatives. In this market, the HHI index is 1.385, for 2020, while for 2019 it was 1.559. As in 2019, in 2020 there are six market participants with sale shares of over 5 %, but the HHI index indicates that in 2020, market power of these market participants in the retail market with oil derivatives is more equally distributed, compared to 2019. These movements indicate that in 2020, the determination of highest retail prices by the Energy Regulatory Commission was harmonized with the market movements and stimulated greater competitiveness.
1 2017 Handbook for National Energy Regulators How to assess retail market functioning 2 Horizontal Merger Guidelines - U.S. Department of Justice and the Federal Trade Commission
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On the electricity market, two segments have been analyzed, - the electricity wholesale, and - electricity sale to end consumers. The first segment is electricity wholesale, which includes sales by electricity traders towards other traders. This segment reveals significant improvement in relation to 2019, i.e., achieving the status of moderate concentration. At the same time, the HHI index in 2020 is 1.717, while for 2019 it was 2.576. The strengthened concentration in the wholesale electricity market can be noticed in the number of market participants that have a share in the sale over 5%. Namely, in 2020 there are six market participants of that type with an overall participation in the sale by 85,60 %, while in 2019 there were only three with approximately same total participation in the sale (85,31%). The second segment in the electricity market, which is subject to analysis in the domain of market concentration is the electricity sale to end consumers, which includes the overall sales of the regulated and liberalized segment of the retail market, as well as the electricity sale for covering grid losses of the TSO and DSOs. Even though in 2020 there is certain improvement in this segment, the status of high concentration remains. At the same time, the HHI index in 2020 is 2.932, while for 2019 it was 3.344. On the other hand, during these two years there are four market participants with a share of over 5% in the total electricity sale. It is rather noticeable that in 2020, their overall participation in the sale, compared to 2019, is reduced by 5,65 % and it is 83,14 %.
The natural gas retail market, that does not comprise trade activities by TE-TO AD Skopje, has the highest market concentration. In 2020 the HHI index is 5.021, while in 2019, this indicator was 4.759. During the two analyzed years, there are three market participants with a share in the sale over 5%, and their overall participation in the natural gas retail market is almost the same, i.e., 98,39 % in 2020 and 98,2 % in 2019.
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WATER SERVICES
2020
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V I I. W A T E R S E R V I C E S
The Law on Setting Prices for Water Services (“Official Gazette of the Republic of Macedonia”, no. 7 / 16) regulates the adjustment of prices on water services, i.e., establishment of tariffs on water services in the supply of raw water designated for water supply to population, water supply, collection and discharge of urban wastewaters, and purification / treatment of wastewaters. In accordance with the Law on Water Service Prices, the procedure on establishing the water service tariffs is conducted by the Energy Regulatory Commission. Through this authorization and responsibility, the Commission contributes to the continuous development of the water services sector in the Republic of North Macedonia, i.e., through the provided measures for water service providers it provides effective and efficient management of raw water supply intended for water supply of the population, the water supply, collection and discharge or urban wastewaters and purification/treatment of wastewaters. The regulation of prices for water services provides reform of the existing water service sector, which imposes to water service providers to perform essential changes regarding organization, management, financial and operative aspects in its operation. On the other hand, by establishing certain measures and providing directions regarding their operation, water service providers are provided with sustainable development and self- financing for future investment projects through which the quality of water service is improved. The regulation of prices on water services aims to provide the overall price on water services for an average household to be available considering the overall income per household in the area of water service provision, to secure sustainable exploitation of the water service infrastructure reaching complete refund of expenses, to improve the quality of water service in providing permanent services in accordance with best available practices, to provide gradual, and eventually complete application of the principal the polluter pays , the principle on resources expenses according to the Law on Waters, and to reinforce water service efficiency by providing the best, according to quality water services, in a cost- effective manner.
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7.1 WATER SERVICES GENERAL DATA The water is an essential natural source for human existence, required in each natural and industrial process. The Republic of North Macedonia is in disposition of satisfactory quantities of water sources, but unequally arrayed. There are 35 rivers, 53 natural and artificial lakes on the territory of the Republic of North Macedonia, and the territory is divided into eight water management areas.
Picture 7.1 Water management regions in the Republic of North Macedonia In 2020, water services in the Republic of North Macedonia are provided by 77 Water Service providers, seven providing raw supply designated for water supply to population, 67 water supply, i.e., supply of drinking water, 54 providing collection and discharge of urban wastewaters, and 17 providing purification / treatment of wastewaters. (Picture 7.2) Along with the water service, a part of the public utility enterprises offers services on collection and disposal of waste, green markets services, parks and greenery services, cemeteries maintenance services, and other public services.
77 WATER SERVICE PROVIDERS
54 17 7 67 Collection and Wastewaters Supply with discharge Water supply purification raw water (disposal) of (wastewater urban treatment) wastewaters
Picture 7.2 Water Service Providers
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7.2 SUPPLY WITH RAW WATER ENVISAGED FOR WATER SUPPLYING OF THE POPULATION
7.2.1 GENERAL DATA The water service of raw water supply envisaged for supply of water to population on the territory of the Republic of North Macedonia, is provided by the total of seven Water Supply Providers, covering partly or entirely the requirements for drinking water to municipalities, further listed: Kumanovo, Sveti Nikole, Probishtip, Veles, Strumica, Novo Selo, Vasilevo, Bosilovo, Bitola, Dolneni, Plasnica, Kichevo, Makedonski Brod, Prilep, Krusevo and Berovo.
7.2.2 RAW WATER SUPPLY TARIFFS The regulated period with established tariffs on water service supply with raw water designated to supply water to population in timeframe of three years, i.e., for the period of 2018-2020. The Table below displays tariffs on this type of water service applicable in 2019 and 2020: Table 7.1 Tariffs on Raw Water Supply designated for water supply to population in 2019 and 2020
Number Water Service Provider – Raw Measurem 2019 2020 2020/2019 Water Supply ent unit Year Year (%) 1 JPV Lisiche Veles MKD/n 3.82 3.82 0,00% m³ 2 JP Studenchica Kichevo MKD/n 1.37 1.47 7,30% m³ 3 JP Strezhevo Bitola MKD/n 4.77 4.32 -9,43% m³ 4 JPHS Zletovica Probishtip MKD/n 4.47 4.74 6,04% m³ AD Vodostopanstvo Podruzhnica 5 MKD/n 3.03 3.09 1,98% Berovo m³ AD Vodostopanstvo Podruzhnica 6 MKD/n 3.60 3.65 1,39% Strumichko Pole m³ AD Vodostopanstvo Podruzhnica 7 MKD/n 3.32 3.37 1,51% Kumanovsko - Lipkovsko pole m³ The analysis reveals that in 2020, the tariff of JP Strezevo Bitola is reduced by - 9,43 % in relation to 2019, but tariffs of other Water Service Providers in 2020 show increase in relation to 2019, except for JPV Lisiche Veles which remains the same. The highest increase, by 7,30 % of the tariff, is by JP Studenchica Kichevo. Chart 7.1 provides review of Raw Water Supply designated for water supply to population in 2019 and 2020.
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6
5 4
3 2
1 0 JPV Lisiche JP Studenchica JP Strezhevo JPHS Zletovica AD AD AD Veles Kichev Bitola Probishtip Vodostopanstvo Vodostopanstvo Vodostopanstvo o Podruzhnica Podruznica Podruznica Berovo Strumichko Pole Kumanovsko - Lipkovsko Pole
2019 2020
Chart 7.1 Tariffs on Raw Water Supply designated for water supply to population in 2019 and 2020
7.2.3 DECISIONS ON THE DETERMINATION OF TARIFFS FOR RAW WATER INTENDED FOR WATER SUPPLY OF THE POPULATION FOR SECOND REGULATED PERIOD 2021-2023 During 2020, the Energy Regulatory Commission has proceeded upon the Requests on tariff determination for raw water intended for water supply of the population, submitted by seven water providers in areas with over 10.000 (equivalent) residents from all eight planned regions in the Republic of North Macedonia and has adopted respective Decisions on Determination of Tariffs for Raw Water for the regulated period 2021-2023. The tariffs that are determined by the Energy Regulatory Commission, in accordance with the Methodology, are average tariffs, i.e., water service providers, within the determined frames, shall determine the amount of tariffs according to user categories. Table 7.2 Average tariffs on raw water supply designated for water supply to population for second regulated period 2021 and 2023
Numb Water Service Provider- Raw Water Measure 2021 2022 2023 er Supply ment Year Year Year unit 1 JPV Lisiche Veles MKD/n 5.30 5.28 5.27 m³ AD VODOSTOPANSTVO of RNM 2 MKD/n 4.16 4.15 4.02 Podruzhnica Berovo m³ 3 JPHS Zletovica Probishtip MKD/n 7.90 7.84 7.72 m³ 4 JP Studenchica Kichevo MKD/n 2.18 2.20 2.22 m³ AD VODOSTOPANSTVO of RNM 5 MKD/n 5.97 6.14 6.32 Podruznica Strumichko Pole m³ 6 JP Strezhevo Bitola MKD/n 5.78 6.03 6.24 m³ AD VODOSTOPANSTVO of RNM Podruznica 7 MKD/n 3.77 3.80 3.82 Kumanovsko - Lipkovsko pole m³
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Chart 7.2 displays average tariffs on raw water supply designated for water supply to population for second regulated period 2021 and 2023.
AD VODOSTOPANSTVO of RNM Podruznica Kumanovsko - Lipkovsko pole… JP Strezhevo Bitola
AD VODOSTOPANSTVO of RNM Podruznica Strumichko Pole JP Studenchica Kichevo
JPHS Zletovica Probishtip
AD VODOSTOPANSTVO of RNM Podruzhnica Berovo JPV Lisiche Veles
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00
2023 2022 2021
Chart 7.2 Average tariffs on raw water supply designated for water supply to population for second regulated period 2021- 2023
7.3 SUPPLY WITH DRINKING / POTABLE WATER OR WATER SUPPLYING
7.3.1 GENERAL DATA The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in the Republic of North Macedonia, is provided by 29 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Veles, Kavadarci, Negotino, Sveti Nikole, Berovo, Vinica, Kochani, Probishtip, Shtip, Debar, Struga, Kichevo, Ohrid, Bosilovo, Gevgelija, Strumica, Radovish, Bitola, Dolneni, Prilep, Resen, Brvenica, Vrapchishte, Gostivar, Zelino, Tetovo, Kumanovo, Skopje, and Ilinden. The water service supply with drinking water or water supply in areas with below 10.000 (equivalent) residents in the Republic of North Macedonia, is provided by 38 Water Service Providers, covering partly or entirely of the drinking water requirements in municipalities, such as: Demir Kapija, Gradsko, Chashka, Rosoman, Makedonska Kamenica, Delchevo, Cheshinovo, Obleshevo, Karbinci, Pehchevo, Zrnovci, Lozovo, Vevchani, Debrca, Makedonski Brod, Centar Zupa, Plasnica, Dojran, Novo Selo, Vasilevo, Bogdanci, Valandovo, Konche, Novaci, Krushevo, Demir Hisar, Mogila, Krivogashtani, Jegunovce, Tearce, Bogovinje, Mavrovo, Staro Nagorichane, Kriva Palanka, Kratovo, Rankovce, Gazi Baba, Zelenikovo and Chucher Sandevo.
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7.3.2 NON - REVENUE WATER IN 2020 The percentage of non – revenue water, even in 2020, remains one of the most significant issue for the Water Service Providers, and depending on the water service provider, it escalates between 7 % and 89 %. According to the late available data, the percentage of non – revenue water in 2020, on national level in the Republic of North Macedonia, is 61,94%. Compared to the year before, quantities of water at the entrance of the water supply systems, show decrease by 4,76 %, but on the other hand, the percentage of invoiced water shows growth from 35,36 % in 2019, to 38,06 % in 2020. The level of non - revenue water of Water Service Providers, for 2020 in relation to 2019, show reduction for approximately 3%, which indicates improvement in the status of the non – revenue water in the entire country. This improvement is due to the regulation of prices to the Water Service Providers by the application of provisions prescribed by the Methodology on determination of tariffs for the water service. The Chart below provides a comparison of the level of invoiced water and level of non - revenue water in 2020 compared to 2019.
Overall produced water in 2019 Overall produced water in 2020 Year 258.346.783 m³ 271.262.710 m³ 98.317.467 95,913,681
175.349.029 160.029.316
Invoiced water 35,36% Invoiced water 38,06%
Non-revenue water 64,64% Non-revenue water 61,94%
Chart 7.3 Comparison of invoiced water and of non - revenue water in 2020 compared to 2019
7.3.3 NON-REVENUE WATER ACCORDING TO REGIONS VARDAR REGION The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in the Vardar Region, is provided by 4 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Veles, Kavadarci, Negotino and Sveti Nikole. The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in the Vardar Region, is provided by 4 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Demir Kapija, Gradsko, Chashka and Rosoman. The Chart below provides a comparison of the level of invoiced water and level of non - revenue water in 2020 in the Vardar Region.
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7.408.174
8,927,029
Invoiced water 45.35% Non-revenue water 54.65%
Chart 7.4 Comparison of invoiced water and of non - revenue water in the Vardar Region EAST REGION The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in the East Region, is provided by 5 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Berovo, Vinica, Kochani, Probistip and Stip. The water service supply with drinking / potable water, or water supply to areas with under 10.000 (equivalent) residents in the East Region, is provided by 6 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Makedonska Kamenica, Delchevo, Chesinovo, Oblesevo, Karbinci, Pehchevo, Zrnovci and Lozovo. The Chart below provides a comparison of the level of invoiced water and level of non - revenue water in 2020 in the Eastern Region. 7.271.947
13,512,642
Invoiced water 34.99% Non-revenue water 65.01%
Chart 7.5 Comparison of invoiced water and of non - revenue water in the Eastern Region
SOUTH-WEST REGION The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in the South-West Region, is provided by 4 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Debar, Struga, Kichevo and Ohrid. The water service supply with drinking / potable water, or water supply to areas with under 10.000 (equivalent) residents in the South-West Region, is provided by 5 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Vevchani, Debrca, Makedonski Brod, Centar Zupa, and Plasnica. The Chart below provides a comparison of the level of invoiced water and level of non - revenue water in 2020 in the South-West Region. Annual Report on operations of the ERC in 2020 - 161 -
7.243.002
21,927,445
Invoiced water 24.83% Non-revenue water 75.17%
Chart 7.6 Comparison of invoiced water and of non - revenue water in the South-West Region SOUTH-EAST REGION The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in the South-East Region, is provided by 4 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Bosilovo, Gevgelija, Strumica and Radovis. The water service supply with drinking / potable water, or water supply to areas with under 10.000 (equivalent) residents in the South-East Region, is provided by 6 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Dojran, Novo Selo, Vasilevo, Bogdanci, Valandovo and Konche. The Chart below provides a comparison of the level of invoiced water and level of non - revenue water in 2020 in the South-East Region.
7.343.616
7,723,659
Invoiced water 51.26% Non-revenue water 48.74%
Chart 7.7 Comparison of invoiced water and of non - revenue water in the South-East Region
PELAGONIJA REGION The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in Pelagonija Region, is provided by 4 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Bitola, Dolneni, Prilep and Resen. The water service supply with drinking / potable water, or water supply to areas with under 10.000 (equivalent) residents in Pelagonija Region, is provided by 5 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Novaci, Krusevo, Demir Hisar, Mogila and Krivogastani.
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Chart 7.8 provides review of the level of invoiced water and Non-revenue water for 2020 in Pelagonija Region.
11.233.424
18,215,496
Invoiced water 38.15% Non-revenue water 61.85%
Chart 7.8 Comparison of invoiced water and of non - revenue water in Pelagonija Region POLOG REGION The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in the Polog Region, is provided by 5 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Brvenica, Vrapchiste, Gostivar, Zelino, and Tetovo. The water service supply with drinking / potable water, or water supply to areas with under 10.000 (equivalent) residents in Polog Region, is provided by 4 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Jegunovce, Tearce, Bogovinje and Mavrovo. The Chart below provides a comparison of the level of invoiced water and level of non - revenue water in 2020 in Polog Region.
10.975.961
20,374,032
Invoiced water 35.01% Non-revenue water 64.99%
Chart 7.9 Comparison of invoiced water and of non - revenue water in Polog Region
NORTH-EAST REGION The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in the North-East Region, is provided by one Water Service Provider, covering partly or entirely of drinking water requirements of Kumanovo municipality. The water service supply with drinking / potable water, or water supply to areas with under 10.000 (equivalent) residents in the North-East Region, is provided by 4 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Staro Nagorichane, Kriva Palanka, Kratovo and Rankovce.
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Chart 7.10 provides review of the level of invoiced water and Non-revenue water for 2020 in Pelagonija Region.
4.843.331
7,398,033
Invoiced water 39.57% Non-revenue water 60.43%
Chart 7.10 Comparison of invoiced water and of non - revenue water in the North- East Region
SKOPJE REGION The water service supply with drinking / potable water, or water supply to areas with over 10.000 (equivalent) residents in Skopje Region, is provided by one Water Service Provider, covering partly or entirely of drinking water requirements of Skopje City. The water service supply with drinking / potable water, or water supply to areas with under 10.000 (equivalent) residents in Skopje Region, is provided by 3 Water Service Providers, covering partly or entirely of drinking water requirements in the municipalities, further listed: Gazi Baba, Zelenikovo and Chucher Sandevo. The Chart below provides a comparison of the level of invoiced water and level of non - revenue water in 2020 in Skopje Region.
41.617.969
62,331,023
Invoiced water 40.04% Non-revenue water 59.96%
Chart 7.11 Comparison of invoiced water and of non - revenue water in Skopje Region
7.3.4 TARIFFS FOR DRINKING WATER SUPPLY OR WATER SUPPLY TO AREAS WITH OVER 10.000 (EQUIVALENT) RESIDENTS The regulated period with established tariffs on the water service referring to supply with drinking water or water supply for water service providers in areas with over 10.000 (equivalent) residents in a timeframe of three years, i.e., for the period from 2018 to 2020. The Energy Regulatory Commission establishes the range of water service tariff movements, while, upon proposition by the Water Service Providers, the final tariffs according to categories of users, are authorized by the Council of the Municipality of the area the water service is provided.
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The application of tariffs by Water Service Providers on the service for drinking water supply, or water supply to areas with over 10.000 (equivalent) residents, in 2019 and 2020 are displayed in the Table below: Table 7.3 Water supply tariffs for 2019 and 2020 in areas above 10.000 (equivalent) residents (MKD/m3)
Provider of the water households Other Ord. service referrring to numb water supply in areas 2019 2020 2020/2019 2019 2020 2020/2019 er with over 10.000 Year Year (%) Year Year (%) (equivalent) residents 1 JKP Derven Veles 31.62 31.62 0,00% 63.05 63.05 0,00% 2 JKP Komunalec Kavadarci 16.50 18.23 10,48% 39.50 39.50 0,00% 3 JKP Komunalec Negotino 21.27 22.42 5,41% 39.34 41.47 5,41% 4 JKP Komunalec Sveti Nikole 32.33 32.33 0,00% 46.00 46.00 0,00% 5 JPKR Usluga Berovo 31.32 33.84 8,04% 55.13 56.85 3,11% 6 JKP Solidarnost Vinica 23.20 24.83 7,02% 48.50 48.50 0,00% 7 KJP Vodovod Kochani 39.92 39.92 0,00% 63.14 49.90 -20,96% 8 JKP Nikola Karev Probishtip 32.50 33.50 3,07% 45.00 44.50 1,11% 9 JKP Isar Shtip 31.96 31.93 -0,09% 49.94 48.29 3,30% 10 JKP Standard Debar 14.31 14.31 0,00% 30.20 30.20 0,00% JP Vodovod i Kanalizacija 11 27.89 29.61 6,16% 42.83 44.59 4,11% Struga 12 JKP Komunalec Kichevo 24.00 24.00 0,00% 36.00 36.00 0,00% 13 JP Vodovod Ohrid 26.50 28.02 5,73% 35.24 34.36 -2,49% 14 JPKD Ograzhden Bosilovo 27.80 30.00 7,91% 27.80 30.00 7,91% 15 JKPD Komunalec Gevgelija 16.83 17.50 3,98% 33.10 33.48 1,14% 16 JKP Komunalec Strumica 31.20 31.20 0,00% 43.87 47.50 8,27% 17 JKP Plavaja Radovish 27.47 28.70 4,47% 46.36 47.54 2,54% 18 JP Vodovod Bitola 28.15 29.35 4,26% 48.60 49.45 1,74% 19 JP Dolneni 25.00 25.00 0,00% 40.00 40.00 0,00% JP Vodovod i Kanalizacija 20 26.70 27.13 1,61% 45.65 45.33 -0,70% Prilep 21 JKP Proleter Resen 24.52 25.92 5,71% 41.43 42.77 3,23% 22 OJP Vardar Brvenica 16.70 18.20 8,98% 30.53 31.31 2,55% 23 JKP Vrapchiste 13.60 13.60 0,00% 13.60 13.60 0,00% 24 JKP Komunalec Gostivar 18.00 18.00 0,00% 49.00 64.00 30,61% 25 JPKD Mirëmbajtja Zelino 12.37 13.00 5,09% 33.33 33.33 0,00% 26 JKP Tetovo 16.08 16.08 0,00% 25.45 25.45 0,00% 27 JP Vodovod Kumanovo 35.47 36.77 3,67% 41.73 42.33 1,44% JP Vodovod i Kanalizacija 28 18.00 18.50 2,78% 30.25 31.25 3,30% Skopje 29 JKP Vodovod Ilinden 25.12 25.71 2,35% 48.00 48.00 0,00% The analyzes shows that in 2020, 18 out of 29 analyzed Water Service Providers have recorded increase of the tariff for households in relation to 2019, one provider with reduced tariff, and 10 without any changes. In the category of other users, fifteen providers of the water service supply in 2020, compared to 2019, have recorded increase of the tariff, three have reduced the tariff, while 11 in this category of users, remain without any changes in the tariff. The reduction of the tariff on water supply for households is noted only by JKP Isar Stip by -0,09 %, while the greatest reduction of the tariff on water supply for the other users i noted by JKP Vodovod Kochani by -20,96 %.
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Largest increase by 10,48 % of the tariff on water supply to households, is recorded by JKP Komunalec – Kavadarci, while the tariff on water supply to other users, records increase by 30,61 % by JKP Komunalec Gostivar. The charts below show the tariffs on water supply in areas with over 10.000 (equivalent) residents, according to the category of households and other, for the years 2019 and 2020. Water supply tariffs for 2019 and 2020 in areas above 10.000 (equivalent) residents (MKD/m3) - category of households
JKP Vodovod Ilinden JP Vodovod i Kanalizacija Skopje JP Vodovod Kumanovo JKP Tetovo JKPD Mirëmbajtja ZELINO JKP Komunalec Gostivar JKP Vrapchiste OJP Vardar Brvenica JKP Proleter Resen JP Vodovod i Kanalizacija Prilep JP Dolneni JP Vodovod Bitola JKP Plavaja Radovis JKP Komunalec Strumica JKPD Komunalec Gevgelija JPKD Ograzhden Bosilovo JP Vodovod Ohrid JKP Komunalec Kichevo JP Vodovod i Kanalizacija Struga JKP Standard Debar JKP Isar Shtip JKP Nikola Karev Probishtip KJP Vodovod Kochani JKP Solidarnost Vinica JKP Usluga Berovo JKP Komunalec Sveti Nikole JKP Komunalec Negotino JKP Komunalec Kavadarci JKP Derven Veles
0 5 10 15 20 25 30 35 40 45
2020 2019
Chart 7.12 Tariffs for water supply of the category of households, in areas with over 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3) Annual Report on operations of the ERC in 2020 - 166 -
Water supply tariffs for 2019 and 2020 in areas above 10.000 (equivalent) residents (MKD/m3) - category of Other
JKP Vodovod Ilinden JP Vodovod i Kanalizacija Skopje JP Vodovod Kumanovo JKP Tetovo JKPD Mirëmbajtja ZELINO JKP Komunalec Gostivar JKP Vrapchiste OJP Vardar Brvenica JKP Proleter Resen JP Vodovod i Kanalizacija Prilep JP Dolneni JP Vodovod Bitola JKP Plavaja Radovis JKP Komunalec Strumica JKPD Komunalec Gevgelija JPKD Ograzhden Bosilovo JP Vodovod Ohrid JKP Komunalec Kichevo JP Vodovod i Kanalizacija Struga JKP Standard Debar JKP Isar Shtip JKP Nikola Karev Probishtip KJP Vodovod Kochani JKP Solidarnost Vinica JKP Usluga Berovo JKP Komunalec Sveti Nikole JKP Komunalec Negotino JKP Komunalec Kavadarci JKP Derven Veles
0 10 20 30 40 50 60 70
2020 2019
Chart 7.13 Tariffs for water supply of the category of Other, in areas with over 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
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7.3.5 DECISIONS ON THE DETERMINATION OF TARIFFS FOR WATER SUPPLY FOR SECOND REGULATED PERIOD 2021-2023 During 2020, the Energy Regulatory Commission has proceeded upon the Requests on tariff determination for water supply, submitted by 29 water providers in areas with over 10.000 (equivalent) residents from all eight planned regions in the Republic of North Macedonia and has adopted respective Decisions on Determination of Tariffs for Raw Water for the regulated period 2021-2023. The tariffs that are determined by the Energy Regulatory Commission, in accordance with the Methodology, are average tariffs, i.e., water service providers, within the determined frames, shall determine the amount of tariffs according to user categories. Table 7.4 Average tariffs for water supply for second regulated period 2021- 2023
Ordinal Water Service Provider- Unit 2021 2022 2023 numb Water supply measurm Year Year Year er ent 1 JKP Derven Veles MKD/n 41.78 42.09 41.10 m³ 2 JKP Komunalec Kavadarci MKD/n 24.90 25.37 25.64 m³ 3 JKP Komunalec Negotino MKD/n 25.50 25.67 25.89 m³ 4 JKP Komunalec Sveti Nikole MKD/n 43.65 43.98 44.40 m³ 5 JKP Usluga Berovo MKD/n 37.79 38.36 38.97 m³ 6 JKP Solidarnost Vinica MKD/n 28.65 29.71 30.28 m³ 7 KJP Vodovod Kochani MKD/n 47.28 46.96 46.75 m³ 8 JKP Nikola Karev Probishtip MKD/n 39.66 40.23 39.99 m³ 9 JKP Isar Shtip MKD/n 37.77 39.27 40.32 m³ 10 JKP Standard Debar MKD/n 20.23 20.82 21.74 m³ 11 JP Vodovod i Kanalizacija Struga MKD/n 34.87 36.06 36.33 m³ 12 JKP Komunalec Kichevo MKD/n 29.49 29.74 29.67 m³ 13 JP Vodovod Ohrid MKD/n 43.24 44.34 45.60 m³ 14 JPKD Ograzhden Bosilovo MKD/n 22.24 23.21 23.65 m³ 15 JKPD Komunalec Gevgelija MKD/n 22.05 22.12 22.03 m³ 16 JKP Komunalec Strumica MKD/n 34.69 34.92 35.17 m³ 17 JKP Plavaja Radovish MKD/n 30.85 32.01 33.24 m³ 18 JP Vodovod Bitola MKD/n 35.65 36.61 37.53 m³ 19 JP Dolneni MKD/n 31.14 31.60 32.06 m³ 20 JP Vodovod i Kanalizacija Prilep MKD/n 32.60 33.30 34.04 m³ 21 JKP Proleter Resen MKD/n 30.48 32.55 33.30 Annual Report on operations of the ERC in 2020 - 168 -
m³ 22 OJP Vardar Brvenica MKD/n 16.63 16.81 17.00 m³ 23 JKP Vrapchiste MKD/n 13.60 13.60 13.60 m³ 24 JKP Komunalec Gostivar MKD/n 22.17 22.43 22.72 m³ 25 JPKD Mirëmbajtja Zelino MKD/n 13.10 13.26 13.42 m³ 26 JKP Tetovo MKD/n 16.26 16.43 16.60 m³ 27 JP Vodovod Kumanovo MKD/n 33.60 33.76 33.94 m³ 28 JP Vodovod i Kanalizacija Skopje MKD/n 22.54 23.24 23.14 m³ 29 JKP Vodovod Ilinden MKD/n 31.96 31.89 31.80 m³ Chart 7.14 displays average tariffs on water supply for second regulated period 2021 - 2023.
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JKP Vodovod Ilinden JP Vodovod i Kanalizacija Skopje JP Vodovod Kumanovo
JKP Tetovo
JKPD Mirëmbajtja Zelino
JKP Komunalec Gostivar
JKP Vrapchiste OJP Vardar Brvenica JKP Proleter Resen JP Vodovod i Kanalizacija Prilep JP Dolneni JP Vodovod Bitola JKP Plavaja Radovis JKP Komunalec Strumica JKPD Komunalec Gevgelija JPKD Ograzhden Bosilovo JP Vodovod Ohrid JKP Komunalec Kichevo JP Vodovod i Kanalizacija Struga JKP Standard Debar JKP Isar Shtip
JKP Nikola Karev Probishtip
KJP Vodovod Kochani
JKP Solidarnost Vinica JKP
Usluga Berovo
JKP Komunalec Sveti Nikole JKP Komunalec Negotino JKP Komunalec Kavadarci JKP Derven Veles 0,00 5,00 10,00 15,00 20,00 25,00 30,00 35,00 40,00 45,00 50,00
2023 2022 2021
Chart 7.14 Average tariffs for water supply for second regulated period 2021- 2023
7.3.6 TARIFFS FOR DRINKING WATER SUPPLY OR WATER SUPPLY TO AREAS WITH UNDER 10.000 (EQUIVALENT) RESIDENTS The regulated period with established tariffs on the water service referring to supply with drinking water or water supply for water service providers in areas with under 10.000 (equivalent) residents in a timeframe of three years, i.e., for the period from 2019 to 2021. The Energy Regulatory Commission establishes the range of water service tariff movements, while, upon proposition by the Water Service Providers, the final tariffs according to categories of users, are authorized by the Council of the Municipality of the area the water service is provided. In 2020, the Energy Regulatory Commission adopted two decisions on the determination of the regulatory tariff for the water service referring to the supply of drinking water or water supply to areas with less than 10.000 (equivalent) residents such as: JKP Higiena Tearce and JKP Skopska Crna Gora Chucher Sandevo, establishing final tariffs according to user category, which are mandatory for these enterprises.
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The application of tariffs by Water Service Providers on the service for drinking water supply, or water supply for water service providers in areas with less than 10.000 (equivalent) residents, in 2019 and 2020 is displayed in the Table below: Table 7.5 Water supply tariffs for 2019 and 2020 in areas with less than 10.000 (equivalent) residents (MKD/m3)
Water Service Provider households Other num Water supply to areas with less ber than 10.000 (equivalent) 2019 2020 2020/2019 2019 2020 2020/2019 residents Year Year (%) Year Year (%)
1 JPKD Boshava Demir Kapija 18.00 18.50 2,78% 35.00 35.50 1,43% 2 JKP Klepa Gradsko 24.00 24.00 0,00% 32.55 29.91 -8,11% 3 JKP Topolka Chaska 28.00 30.00 7,14% 30.00 28.08 -6,40% 4 JKPD Rosoman 15.00 15.20 1,33% 30.00 29.50 -1,67% JP Kamena Reka Makedonska 5 24.00 24.00 0,00% 60.00 60.00 0,00% Kamenica 6 JPKD Bregalnica Delchevo 28.98 29.10 0,41% 51.07 50.12 -1,86% JKP Oblesevo Chesinovo 7 20.00 20.00 0,00% 20.00 20.00 0,00% Oblesevo 8 JP Plachkovica Karbinci 24.00 27.00 12,50% 46.00 49.00 6,52% 9 JKP Komunalec Pehchevo 27.69 28.72 3,72% 54.00 54.57 1,06% 10 JKP Vodna Kula Zrnovci 26.00 26.00 0,00% 26.00 26.00 0,00% 11 JPKD Lozovo / 27.00 / / 49.00 / 12 JP Eremija Vevchani 12.29 12.64 2,85% 23.96 24.03 0,29% 13 JPKD Debrca 18.00 18.50 2,78% 35.50 35.80 0,85% JP Vodovod i Kanalizacija 14 20.36 22.83 12,13% 40.00 43.00 7,50% Makedonski Brod 15 JKP Kale Centrar Zupa 15.30 15.30 0,00% 34.70 34.70 0,00% 16 JP Komunalec Plasnica 19.47 19.74 1,38% 36.00 37.00 2,78% 17 JPKD Komunalec Polin Dojran 23.54 23.54 0,00% 56.03 56.03 0,00% 18 JPKD Komuna Novo Selo 25.00 25.00 0,00% 50.00 50.00 0,00% 19 JKP Turija Vasilevo 32.63 30.85 -5,45% 45.00 45.06 1,33% 20 JKP Komunalna Chistota Bogdanci 23.80 23.80 0,00% 35.00 35.00 0,00% 21 JP Komunalen Servis Valandovo 17.21 17.21 0,00% 23.94 23.94 0,00% 22 JPKD Lakavica Konche 19.67 19.95 1,42% 37.09 36.77 -0,86% 23 Komunalna Higiena Novaci 24.25 26.76 10,35% 24.25 26.76 10,35% 24 JP Komuna Krusevo 28.00 28.00 0,00% 50.00 50.00 0,00% 25 JKP Komunalec Demir Hisar 23.00 23.50 2,17% 47.00 47.00 0,00% 26 JKP Pela Higiena Mogila 24.41 24.41 0,00% 45.00 45.00 0,00% 27 JP Pelagonija Krivogastani 25.00 25.00 0,00% 25.00 25.00 0,00% 28 DU Chistota Jegunovce 17.50 18.00 2,86% 33.00 33.50 1,52% 29 JP Higiena Tearce 10.00 10.00 0,00% 15.00 15.00 0,00% 30 JKP Shari Bogovinje 5.00 5.00 0,00% 10.00 10.00 0,00% 31 JPKD Mavrovo Mavrovi Anovi 24.80 24.80 0,00% 30.40 30.40 0,00% 32 JKP Kozjak Staro Nagorichane 29.98 31.33 4,50% 62.19 63.23 1,67% 33 JP Komunalec Kriva Palanka 23.50 24.00 2,13% 37.50 39.00 4,00% 34 DKU Silkom Kratovo 14.28 15.08 5,60% 21.82 23.62 8,25% 35 JKP Chist Den Rankovce 26.49 27.25 2,87% 44.24 45.23 2,24% 36 JKP Gazi Baba - 2007 15.25 15.50 1,64% 19.50 20.00 2,56% 37 JKP Zelenikovo 27.00 27.00 0,00% 47.00 47.00 0,00% JKP Skopska Crna Gora Chucher 38 / 14.82 / / 37.04 / Sandevo The data provided in Table 7.5 confirm that in 2020, 19 out of 38 Water Service Providers have recorded increase of the tariff for households in relation to 2019, one has decreased the tariff while 17 remain with unchanged tariff. In the category of other users,
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fifteen providers of the water service supply in 2020, compared to 2019, have recorded increase of the tariff, five have reduced the tariff, while 16 in this category of users, remain without any changes in the tariff. The reduction of the tariff on water supply for households is noted only by JKP Turija Vasilevo by -5,45 %, while the greatest reduction of the tariff on water supply for other users i noted by JKP Klepa Gradsko by -8.11 %. Largest increase by 12,50 % of the tariff on water supply to households, is by JKP Plachkovica Karbinci, while the tariff on water supply to other users has increased mostly by JKPD Komunalna Higiena Novaci by 10,35 %. The charts below show the tariffs on water supply in areas with less than 10.000 (equivalent) residents, according to the category of households and other, for the years 2019 and 2020.
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Water supply tariffs for 2019 and 2020 in regions under 10.000 (equivalent) residents (MKD/m3) - category of households
JKP Zelenikovo JKP Skopska Crna Gora Chucher
Sandevo
JKP Gazi Baba - 2007 JKP Chist Den Rankovce DKU Silkom Kratovo JP Komunalec Kriva Palanka JKP Kozjak Staro Nagorichane JPKD Mavrovo Mavrovi Anovi JKP Shari Bogovinje JP Higiena Tearce DU Chistota Jegunovce
JP Pelagonija Krivogastani JKP
Pela Higiena Mogila JKP Komunalec Demir Hisar JP Komuna Krusevo Komunalna Higiena Novaci JPKD Lakavica Konche JP Komunalen Servis Valandovo JKP Komunalna Chistota Bogdanci JKP Turija Vasilevo
JPKD Komuna Novo Selo
JPKD Komunalec Polin Dojran JP
Komunalec Plasnica JKP Kale Centrar Zupa JP Vodovod i Kanalizacija Makedonski Brod JPKD Debrca JP Eremija Vevchani JPKD Lozovo JKP Vodna Kula Zrnovci JKP Komunalec Pehchevo
JP Plachkovica Karbinci
JKP Oblesevo Chesinovo Oblesevo
JPKD Bregalnica Delchevo JP Kamena Reka Makedonska Kamenica JKPD Rosoman JKP Topolka Chaska JKP Klepa Gradsko JPKD Boshava Demir Kapija 0 5 10 15 20 25 30 35
2020 2019
Chart 7.15 Tariffs for water supply of the category of households, in areas with less than 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
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Water supply tariffs for 2019 and 2020 in regions under 10.000 (equivalent) residents (MKD/m3) - category of Other
JKP Zelenikovo JKP Skopska Crna Gora Chucher Sandevo
JKP Gazi Baba - 2007
JKP Chist Den Rankovce
DKU Silkom Kratovo
JP Komunalec Kriva Palanka
JKP Kozjak Staro Nagorichane JPKD Mavrovo Mavrovi Anovi JKP Shari Bogovinje JP Higiena Tearce DU Chistota Jegunovce JP Pelagonija Krivogastani JKP Pela Higiena Mogila JKP Komunalec Demir Hisar JP Komuna Krusevo JPKD Komunalna Higiena Novaci JPKD Lakavica Konche JP Komunalen Servis Valandovo JKP Komunalna Chistota Bogdanci JKP Turija Vasilevo JPKD Komuna Novo Selo JPKD Komunalec Polin Dojran JP
Komunalec Plasnica JKP
Kale Centrar Zupa
JP Vodovod i Kanalizacija Makedonski Brod
JPKD Debrca
JP Eremija Vevchani JPKD Lozovo JKP Vodna Kula Zrnovci JKP Komunalec Pehchevo JP Plachkovica Karbinci JKP Oblesevo Chesinovo Oblesevo JPKD Bregalnica Delchevo JP Kamena Reka Makedonska Kamenica JKPD Rosoman JKP Topolka Chaska JKP Klepa Gradsko JPKD Boshava Demir Kapija 0 10 20 30 40 50 60 70
2020 2019
Chart 7.16 Tariffs for water supply of the category of Other, in areas with less than 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
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7.4 COLLECTION AND DISCHARGE (DISPOSAL) OF URBAN WASTEWATERS
7.4.1 GENERAL DATA The water service Collection and Discharge (Disposal) of Urban Wastewaters, on the territory of the Republic of North Macedonia, in areas with over 10.000 (equivalent) residents, are provided by 27 Water Service Providers, covering partly or entirely the requirements of the further listed municipalities: Veles, Kavadarci, Negotino, Sveti Nikole, Berovo, Vinica, Kochani, Probishtip, Shtip, Debar, Struga, Kichevo, Ohrid, Gevgelija, Strumica, Radovish, Bitola, Prilep, Resen, Brvenica, Vrapchishte, Gostivar, Zelino, Tetovo, Kumanovo, Skopje, and Ilinden. The water service referring to Collection and Discharge (Disposal) of Urban Wastewaters, on the territory of the Republic of North Macedonia, in areas with less than 10.000 (equivalent) residents, are provided by 28 Water Service Providers, covering partly or entirely the requirements of the further listed municipalities: Demir Kapija, Gradsko, Chashka, Rosoman, Makedonska Kamenica, Delchevo, Cheshinovo, Obleshevo, Karbinci, Pehchevo, Zrnovci, Lozovo, Vevchani, Debrca, Makedonski Brod, Dojran, Novo Selo, Vasilevo, Bogdanci, Valandovo, Konche, Krushevo, Demir Hisar, Mogila, Krivogashtani, Kriva Palanka, Rankovce, Zelenikovo and Chucher Sandevo.
7.4.2 TARIFFS FOR COLLECTION AND DISCHARGE (DISPOSAL) OF URBAN WASTEWATERS IN AREAS WITH OVER 10,000 EQUIVALENT RESIDENTS The regulated period with established tariffs on water service Collection and Discharge (Disposal) of Urban Wastewaters, for the water Service Providers, in areas with over 10.000 (equivalent) residents, is in the timeframe of three years, i.e., in the period from 2018 to 2020. The Energy Regulatory Commission establishes the range of water service tariff movements, while, upon proposition by the Water Service Providers, the final tariffs according to categories of users, are authorized by the Council of the Municipality of the area the water service is provided. The application of tariffs by the Water Service Providers for Collection and Discharge (Disposal) of Urban Wastewaters in areas with over 10.000 (equivalent) residents, in 2019 and 2020 is displayed in the Table below: Table 7.6 Tariffs on Collection and Discharge (Disposal) of Urban Wastewaters in areas with over 10.000 equivalent residents for 2019 and 2020 (MKD/m3)
Water Service Provider- Households other num Collection and Discharge
ber (disposal) of 2019 2020 2020/2019 2019 2020 2020/2019 Urban Wastewater in areas with Year Year (%) Year Year (%) over 10.000 (equivalent) residents 1 JKP Derven Veles 5.01 5.01 0,00% 7.66 7.66 0,00% 2 JKP Komunalec Kavadarci 4.37 4.91 12,35% 7.00 7.00 0,00% 3 JKP Komunalec Negotino 8.00 9.50 18,75% 12.00 13.50 12,50%
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Water Service Provider- Households other num Collection and Discharge ber (disposal) of 2019 2020 2020/2019 2019 2020 2020/2019 Urban Wastewater in areas with Year Year (%) Year Year (%) over 10.000 (equivalent) residents 4 JKP Komunalec Sveti Nikole 5.00 5.00 0,00% 8.00 8.00 0,00% 5 JPKR Usluga Berovo 6.77 6.77 0,00% 10.11 10.83 7,12% 6 JKP Solidarnost Vinica 6.33 6.69 5,69% 6.33 6.69 5,69% 7 KJP Vodovod Kochani 11.27 11.67 3,55% 17.15 17.41 1,52% 8 JKP Nikola Karev Probishtip 4.10 4.10 0,00% 4.10 4.10 0,00% 9 JKP Isar Shtip 12.00 12.00 0,00% 23.00 23.00 0,00% 10 JKP Standard Debar 2.52 2.52 0,00% 5.33 5.33 0,00% 11 JP Vodovod i Kanalizacija Struga 10.56 10.98 3,98% 25.10 20.01 -20,28% 12 JKP Komunalec Kichevo 6.00 6.00 0,00% 7.00 7.00 0,00% 13 JP Niskogradba Ohrid 9.05 9.51 5,08% 15.66 16.46 5,11% 14 JKPD Komunalec Gevgelija 3.67 4.04 10,08% 7.26 7.79 7,30% 15 JKP Komunalec Strumica 9.00 9.87 9,66% 13.00 14.31 10,07% 16 JKP Plavaja Radovish 5.93 6.62 11,64% 10.08 10.59 5,06% 17 JKP Niskogradba Bitola 12.50 13.21 5,68% 17.88 18.49 3,41% 18 JP Vodovod i Kanalizacija Prilep 5.28 5.28 0,00% 5.28 5.28 0,00% 19 JKP Proleter Resen 4.62 4.75 2,81% 6.25 6.25 0,00% 20 OJP Vardar Brvenica 3.71 3.71 0,00% 3.71 3.71 0,00% 21 JKP Komunalec Gostivar 10.80 12.00 11,11% 19.60 21.00 7,14% 22 JPKD Mirëmbajtja Zelino 8.21 8.21 0,00% 13.50 13.50 0,00% 23 JKP Tetovo 3.00 3.00 0,00% 6.38 7.82 22,57% 24 JP Vodovod Kumanovo 4.54 4.90 7,93% 5.74 6.01 4,70% 25 JP Vodovod i Kanalizacija Skopje 10.60 10.85 2,36% 16.30 16.00 -1,84% 26 JKP Vodovod Ilinden 9.70 10.02 3,30% 19.32 19.40 0,41% The analyzes reveals that 15 out of 26 Water Service Providers on Collection and Discharge (Disposal) of Urban Wastewaters, compared to 2019, in 2020 have recorded increase of the tariff for the category of households, while 11 have recorded no change in the tariff for the category of households. In the category of other users, thirteen providers of the water service referring to collection and disposal of urban wastewaters in 2020, compared to 2019, have recorded increase of the tariff, two have reduced the tariff, while 11 in this category of users, remain without any changes in the tariff. In 2020 the category of households does not record decrease of the tariff on collection and discharge (disposal) of urban wastewaters, while the category of other users the greatest decrease is recorded by JP Vodovod i Kanalizacija Struga by -20,28%. Greatest increase of the tariff for collection and discharge (disposal) of urban waste waters for the category of households is recorded by JP Komunalec Negotino by 18,75 %, while the category other records the greatest increase by JKP Tetovo by 22,57%.
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The charts below show the tariffs collection and discharge (disposal) of urban wastewaters in areas with over 10.000 (equivalent) residents, according to the category of households and other, for the years 2019 and 2020.
Tariffs on Collection and Discharge (Disposal) of Urban Wastewaters in areas with over 10.000 equivalent residents (MKD/m3) for 2019 and 2020 - category Households
JKP Vodovod Ilinden JP Vodovod i Kanalizacija Skopje JP Vodovod Kumanovo JKP Tetovo JPKD Mirëmbajtja Zelino JKP Komunalec Gostivar OJP Vardar Brvenica JKP Proleter Resen JP Vodovod i Kanalizacija Prilep JKP Niskogradba Bitola JKP Plavaja Radovish JKP Komunalec Strumica JKPD Komunalec Gevgelija JP Niskogradba Ohrid JKP Komunalec Kichevo JP Vodovod i Kanalizacija Struga JKP Standard Debar JKP Isar Shtip JKP Nikola Karev Probishtip KJP Vodovod Kochani JKP Solidarnost Vinica JKP Usluga Berovo JKP Komunalec Sveti Nikole JKP Komunalec Negotino JKP Komunalec Kavadarci JKP Derven Veles 0 2 4 6 8 10 12 14
2020 2019
Chart 7.17 Tariffs for Collection and discharge (disposal) of urban wastewaters of the category of households, in areas with over 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
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Tariffs on Collection and Discharge (Disposal) of Urban Wastewaters in areas with over 10.000 equivalent residents (MKD/m3) for 2019 and 2020 - category other
JKP Vodovod Ilinden JP Vodovod i Kanalizacija Skopje JP Vodovod Kumanovo JKP Tetovo JPKD Mirëmbajtja Zelino JKP Komunalec Gostivar OJP Vardar Brvenica JKP Proleter Resen JP Vodovod i Kanalizacija Prilep JKP Niskogradba Bitola JKP Plavaja Radovish JKP Komunalec Strumica JKPD Komunalec Gevgelija JP Niskogradba Ohrid JKP Komunalec Kichevo JP Vodovod i Kanalizacija Struga JKP Standard Debar JKP Isar Shtip JKP Nikola Karev Probishtip KJP Vodovod Kochani JKP Solidarnost Vinica JKP Usluga Berovo JKP Komunalec Sveti Nikole JKP Komunalec Negotino JKP Komunalec Kavadarci JKP Derven Veles
0 5 10 15 20 25 30
2020 2019
Chart 7.18 Tariffs for Collection and discharge (disposal) of urban wastewaters of the category of other, in areas with over 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
Annual Report on operations of the ERC in 2020 - 178 -
7.4.3 DECISIONS ON THE DETERMINATION OF TARIFFS FOR COLLECTION AND DISCHARGE (DISPOSAL) OF URBAN WASTEWATERS FOR SECOND REGULATED PERIOD 2021-2023 During 2020, the Energy Regulatory Commission has proceeded upon the Requests on tariff determination for collection and discharge (disposal) of urban wastewaters, submitted by 27 water providers in areas with over 10.000 (equivalent) residents from all eight planned regions in the Republic of North Macedonia and has adopted respective Decisions on Determination of Tariffs for Collection and Discharge (Disposal) of Urban Wastewaters for the regulated period 2021-2023. The tariffs that are determined by the Energy Regulatory Commission, in accordance with the Methodology, are average tariffs, i.e., water service providers, within the determined frames, shall determine the amount of tariffs according to user categories. Table 7.7 Average tariff for collection and discharge of urban wastewaters for second regulated period 2021-2023
Water Service Provider- Numb Measure 2021 2022 2023 Collection and Discharge er ment Year Year Year (disposal) of Urban unit Wastewaters 1 JKP Derven Veles MKD/nm³ 5.21 5.51 5.72 2 JKP Komunalec Kavadarci MKD/nm³ 5.98 6.52 7.32 3 JKP Komunalec Negotino MKD/nm³ 9.02 9.08 9.15 4 JKP Komunalec Sveti Nikole MKD/nm³ 4.93 5.49 5.62 5 JKP Usluga Berovo MKD/nm³ 5.12 5.22 5.14 6 JKP Solidarnost Vinica MKD/nm³ 8.07 8.12 8.20 7 KJP Vodovod Kochani MKD/nm³ 16.25 15.92 15.67 8 JKP Nikola Karev Probishtip MKD/nm³ 4.08 4.42 4.63 9 JKP Isar Shtip MKD/nm³ 14.11 15.85 16.7 10 JKP Standard Debar MKD/nm³ 2.99 3.26 3.41 11 JP Vodovod i Kanalizacija Struga MKD/nm³ 11.56 10.65 9.96 12 JKP Komunalec Kichevo MKD/nm³ 7.07 13.39 19.51 13 JP Niskogradba Ohrid MKD/nm³ 17.89 19.17 19.76 14 JKPD Komunalec Gevgelija MKD/nm³ 5.87 6.37 7.14 15 JKP Komunalec Strumica MKD/nm³ 13.21 13.08 12.96 16 JKP Plavaja Radovish MKD/nm³ 4.51 5.21 5.74 17 JKP Niskogradba Bitola MKD/nm³ 13.54 13.62 13.69 18 JP Vodovod i Kanalizacija Prilep MKD/nm³ 5.57 5.76 5.83 19 JKP Proleter Resen MKD/nm³ 5.02 5.23 5.37 20 OJP Vardar Brvenica MKD/nm³ 7.46 7.59 7.72 21 JKP Vrapchiste MKD/nm³ 2.60 2.60 2.60 22 JKP Komunalec Gostivar MKD/nm³ 13.13 12.35 11.66 23 JPKD Mirëmbajtja Zelino MKD/nm³ 8.23 7.89 7.56 24 JKP Tetovo MKD/nm³ 2.69 2.69 2.68 25 JP Vodovod Kumanovo MKD/nm³ 4.51 4.50 4.51 26 JP Vodovod i Kanalizacija Skopje MKD/nm³ 12.73 12.99 13.25 27 JKP Vodovod Ilinden MKD/nm³ 10.69 11.13 10.92 Chart 7.19 provides review of average tariff for collection and discharge of urban wastewaters for second regulated period 2021-2023.
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Average tariffs (MKD/m3) - Collection and Discharge (disposal) of Urban Wastewaters
JKP Vodovod Ilinden JP Vodovod i Kanalizacija Skopje
JP Vodovod Kumanovo
JKP Tetovo
JKPD Mirëmbajtja Zelino
JKP Komunalec Gostivar JKP Vrapchiste OJP Vardar Brvenica JKP Proleter Resen JP Vodovod i Kanalizacija Prilep JKP Niskogradba Bitola JKP Plavaja Radovish JKP Komunalec Strumica JKPD Komunalec Gevgelija JP Niskogradba Ohrid JKP Komunalec Kichevo JP Vodovod i Kanalizacija Struga JKP Standard Debar
JKP Isar Shtip
JKP Nikola Karev Probishtip KJP
Vodovod Kochani
JKP Solidarnost Vinica JKP Usluga Berovo JKP Komunalec Sveti Nikole JKP Komunalec Negotino JKP Komunalec Kavadarci JKP Derven Veles 0.00 5.00 10.00 15.00 20.00 25.00
2023 2022 2021
Chart 7.19 Average tariff for collection and discharge of urban wastewaters for second regulated period 2021-2023
7.4.4 TARIFFS FOR COLLECTION AND DISCHARGE (DISPOSAL) OF URBAN WASTEWATERS IN AREAS WITH LESS THAN 10,000 EQUIVALENT RESIDENTS The regulated period with established tariffs on water service Collection and Discharge (Disposal) of Urban Wastewaters, for the water Service Providers, in areas with less than 10.000 (equivalent) residents, is in the timeframe of three years, i.e., in the period from 2019 to 2021. The Energy Regulatory Commission establishes the range of water service tariff movements, while, upon proposition by the Water Service Providers, the final tariffs according to categories of users, are authorized by the Council of the Municipality of the area the water service is provided. In 2020, the Energy Regulatory Commission adopted a decision on the Determination of the Regulatory Tariff for the Water Service of Collection and Discharge (Disposal) of Urban Wastewaters in areas with less than 10.000 (equivalent) residents for JKP Skopska Crna Gora Chucher Sandevo, establishing
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final tariffs according to category of users that were mandatory for the enterprise. The application of tariffs by the Water Service Providers for Collection and Discharge (Disposal) of Urban Wastewaters in areas with less than 10.000 (equivalent) residents, in 2019 and 2020 is displayed in the Table below: Table 7.8 Tariffs on Collection and Discharge ( Disposal) of Urban Wastewaters in areas with less than 10.000 equivalent residents for 2019 and 2020 (MKD/m3)
Water Service Provider of Households Other Collection and Discharge ( num Disposal) of Urban ber Wastewaters in areas with 2019 2020 2020/2019 2019 2020 2020/2019 less than 10.000 equivalent Year Year (%) Year Year (%) residents 1 JPKD Boshava Demir Kapija 6.68 6.96 4,19% 13.00 13.25 1,92% 2 JKP Klepa Gradsko 4.00 4.11 2,75% 4.00 4.11 2,75% 3 JKP Topolka Chaska 4.30 7.00 62,70% 4.30 7.00 62,70% 4 JKPD Rosoman 5.06 5.04 -0,40% 9.86 9.58 -2,84% JP Kamena Reka 5 7.00 7.00 0,00% 11.00 11.00 0,00% Makedonska Kamenica 6 JPKD Bregalnica Delchevo 10.28 10.17 -1,07% 18.89 18.25 -3,39% JKP Oblesevo Chesinovo 7 10.00 10.00 0,00% 10.00 10.00 0,00% Oblesevo 8 JP Plachkovica Karbinci 6.00 7.00 16,67% 6.00 7.00 16,67% 9 JKP Komunalec Pehchevo 9.61 9.75 1,46% 18.74 18.52 -1,17% 10 JKP Vodna Kula Zrnovci 6.00 6.00 0,00% 6.00 6.00 0,00% 11 JPKD Lozovo / 10.00 / / 20.00 / 12 JP Eremija Vevchani 6.16 6.34 2,92% 12.01 12.05 0,33% 13 JPKD Debrca 3.27 3.41 4,28% 5.00 5.00 0,00% JP Vodovod i Kanalizacija 14 9.06 9.19 1,43% 15.00 15.00 0,00% Makedonski Brod JPKD Komunalec Polin 15 12.54 12.54 0,00% 24.45 24.45 0,00% Dojran 16 JPKD Komuna Novo Selo 6.25 6.25 0,00% 12.50 12.50 0,00% 17 JKP Turija Vasilevo 5.61 5.61 0,00% 10.62 10.62 0,00% JKP Komunalna Chistota 18 5.00 5.00 0,00% 10.00 10.00 0,00% Bogdanci JP Komunalen Servis 19 3.04 3.04 0,00% 4.97 4.97 0,00% Valandovo 20 JPKD Lakavica Konche 4.43 4.52 2,03% 4.43 4.52 2,03% 21 JP Komuna Krusevo 3.80 3.80 0,00% 8.00 8.00 0,00% JKP Komunalec Demir 22 6.00 6.10 1,67% 10.00 10.00 0,00% Hisar 23 JKP Pela Higiena Mogila 12.23 12.22 -0,08% 22.50 22.50 0,00% JP Pelagonija 24 9.00 9.00 0,00% 9.00 9.00 0,00% Krivogastani JP Komunalec Kriva 25 3.61 3.69 2,22% 3.61 4.43 22,71% Palanka 26 JKP Chist Den Rankovce 5.00 5.20 4,00% 6.65 6.50 -2,26% JKP Skopska Crna Gora 27 / 8.81 / / 22.02 / Chucher Sandevo 28 JKP Zelenikovo 5.00 5.00 0,00% 11.00 11.00 0,00%
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The analyzes reveals that 9 out of 28 Water Service Providers on Collection and Discharge (Disposal) of Urban Wastewaters, compared to 2019, in 2020 have recorded increase of the tariff for the category of households, while 11 have recorded no change in the tariff for the category of households. In the category of other users, eight providers of the water service referring to collection and disposal of urban wastewaters in 2020, compared to 2019, have recorded increase of the tariff, four have reduced the tariff, while 15 in this category of users, remain without any changes in the tariff. Largest decrease is by JPKD Bregalnica Delchevo in the category of households by - 1,07 % on the tariff of Collection and Discharge (Disposal) of Urban Wastewaters, and largest decrease by -3,39 % in the category of other users. Largest increase is by JKP Topolka Chaska on the tariff of Collection and Discharge (Disposal) of Urban Wastewaters identically in both user categories by 62,70%. The charts below show the tariffs collection and discharge (disposal) of urban wastewaters in areas with less than 10.000 (equivalent) residents, according to the category of households and other, for the years 2019 and 2020.
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Tariffs on Collection and Discharge (Disposal) of Urban Wastewaters in areas with less than 10.000 equivalent residents (MKD/m3) for 2019 and 2020 - category households
JKP Zelenikovo
JKP Skopska Crna Gora Chucher Sandevo
JKP Chist Den Rankovce
JP Komunalec Kriva Palanka
JP Pelagonija Krivogastani
JKP Pela Higiena Mogila
JKP Komunalec Demir Hisar
JP Komuna Krusevo
JPKD Lakavica Konche
JP Komunalen Servis Valandovo
JKP Komunalna Chistota Bogdanci
JKP Turija Vasilevo
JPKD Komuna Novo Selo
JPKD Komunalec Polin Dojran
JP Vodovod i Kanalizacija Makedonski Brod
JPKD Debrca
JP Eremija Vevchani
JPKD Lozovo
JKP Vodna Kula Zrnovci
JKP Komunalec Pehchevo
JP Plachkovica Karbinci
JKP Oblesevo Chesinovo Oblesevo
JPKD Bregalnica Delchevo
JP Kamena Reka Makedonska Kamenica
JKPD Rosoman
JKP Topolka Chaska
JKP Klepa Gradsko
JPKD Boshava Demir Kapija
0 2 4 6 8 10 12 14
2020 2019
Chart 7.20 Tariffs for Collection and discharge (disposal) of urban wastewaters of the category of households, in areas with less than 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
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Tariffs on Collection and Discharge (Disposal) of Urban Wastewaters in areas with less than 10.000 equivalent residents (MKD/m3) for 2019 and 2020 - category other
JKP Zelenikovo JKP Skopska Crna Gora Chucher Sandevo JKP Chist Den Rankovce JP Komunalec Kriva Palanka JP Pelagonija Krivogastani JKP Pela Higiena Mogila JKP Komunalec Demir Hisar JP Komuna Krusevo JPKD Lakavica Konche JP Komunalen Servis Valandovo JKP Komunalna Chistota Bogdanci JKP Turija Vasilevo JPKD Komuna Novo Selo JPKD Komunalec Polin Dojran JP Vodovod i Kanalizacija Makedonski Brod JPKD Debrca JP Eremija Vevchani JPKD Lozovo JKP Vodna Kula Zrnovci JKP Komunalec Pehchevo JP Plachkovica Karbinci JKP Oblesevo Chesinovo Oblesevo JPKD Bregalnica Delchevo JP Kamena Reka Makedonska Kamenica JKPD Rosoman JKP Topolka Chaska JKP Klepa Gradsko JPKD Boshava Demir Kapija
0 5 10 15 20 25 30
2020 2019
Chart 7.21 Tariffs for Collection and discharge (disposal) of urban wastewaters of the category of other, in areas with less than 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
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7.5 WASTEWATERS PURIFICATION (WASTEWATER TREATMENT)
7.5.1 GENERAL DATA The water service of Wastewaters purification (wastewater treatment), on the territory of the Republic of North Macedonia, in areas with over 10.000 (equivalent) residents, are provided by 13 Water Service Providers, covering partly or entirely the requirements of the further listed municipalities: Berovo, Kochani,Struga, Kichevo, Gevgelija, Strumica, Radovish, Prilep, Bitola, Resen, Kumanovo, Skopje and Ilinden. The water service of Wastewaters purification (wastewater treatment), on the territory of the Republic of North Macedonia, in areas with less than 10.000 (equivalent) residents, is provided by four Water Service Providers, covering partly or entirely the requirements of the further listed municipalities: Makedonski Brod, Dojran, Chucher Sandevo and Krivogastani.
7.5.2 TARIFFS FOR WASTEWATERS PURIFICATION (WASTEWATER TREATMENT) IN AREAS WITH OVER 10.000 (EQUIVALENT) RESIDENTS The regulated period with established tariffs on water service of Wastewaters purification (wastewater treatment), for the water Service Providers, in areas with over 10.000 (equivalent) residents is in the timeframe of three years, i.e., in the period from 2018 to 2020. The Energy Regulatory Commission establishes the range of water service tariff movements, while, upon proposition by the Water Service Providers, the final tariffs according to categories of users, are authorized by the Council of the Municipality of the area the water service is provided. The tariffs that are applied by the providers of the water service referring to the Wastewaters purification (wastewater treatment) for water service providers in areas with over 10.000 (equivalent) residents in 2019 and 2020 are displayed in the Table below: Table 7.9 Tariffs on Wastewaters purification (wastewater treatment) in areas with over 10.000 equivalent residents for 2019 and 2020 (MKD/m3)
Water Service Provider households Other Wastewaters purification (wastewater treatment) in No. Areas with over 10.000 (equivalent) 2019 2020 2020/2019 2019 2020 2020/2019 residents Year Year (%) Year Year (%)
1 JPKR Usluga Berovo 11.50 12.03 4,61% 11.50 12.03 4,61% 2 KJP Vodovod Kochani 12.75 13.04 2,27% 12.75 13.04 2,27% 3 JP Kolektorski Sistem Skopje 16.64 16.66 0,12% 26.68 26.70 0,07% 4 JKP Komunalec Kichevo 10.00 10.00 0,00% 13.00 13.00 0,00% 5 JKPD Komunalec Gevgelija 10.44 10.44 0,00% 20.70 20.13 -2,75% 6 JKP Komunalec Strumica 12.38 11.56 -6,62% 18.64 17.39 -6,70% 7 JKP Plavaja Radovish 12.61 12.68 0,56% 18.66 18.57 -0,48% 8 JKP Niskogradba Bitola 6.59 6.80 3,19% 9.39 9.53 1,49% 9 JKP Proleter Resen 11.60 11.86 2,24% 15.89 16.24 2,20% 10 JP Vodovod Kumanovo 8.97 9.16 2,12% 8.97 9.16 2,12%
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11 JP Vodovod i Kanalizacija Skopje 0.85 0.86 1,17% 0.85 0.86 1,17% 12 JKP Vodovod Ilinden 7.38 7.80 5,69% 14.69 15.11 2,86% 13 JP Vodovod i Kanalizacija Prilep 17.35 17.35 0,00% 17.35 17.35 0,00% The analyzes reveals that 7 out of 9 Water Service Providers of Wastewaters purification (wastewater treatment), compared to 2019, in 2020 have recorded increase of the tariff for the category of households, while 1 has recorded decrease while three have recorded no change in the tariff for the category of households. In the category of other users,eight providers of the water service referring to the wastewaters purification (wastewater treatment) in 2020, compared to 2019, have recorded increase of the tariff, three have reduced the tariff, while 2 in this category of users, remain without any changes in the tariff. Largest decrease of the tariff on wastewaters purification (wastewater treatment) for both user categories is noted by JKPD Komunalec Strumica in the category of households by -6, 62% and for the category of other by -6,70%. Largest increase by 5,69 % on the tariff for Wastewaters Purification (Wastewater Treatment) in the category of households is by JKP Vodovod - Ilinden, while the largest increase by 4,61% for the category of other users in the area the service is provided by JPKR Usluga Berovo. The charts below show the tariffs on wastewaters purification (wastewater treatment) in areas with over 10.000 (equivalent) residents, according to the category of households and other, for the years 2019 and 2020.
18 16 14 12 10 8 6 4 2 0
2019 2020 година
Chart 7.22 Tariffs for wastewaters purification (wastewater treatment) of the category of households, in areas with over 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
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30
25
20
15
10
5
0
2019 2020
Chart 7.23 Tariffs for wastewaters purification (wastewater treatment) of the category of other, in areas with over 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
7.5.3 DECISIONS ON THE DETERMINATION OF TARIFFS FOR WASTEWATERS PURIFICATION (WASTEWATER TREATMENT) FOR SECOND REGULATED PERIOD 2021-2023 During 2020, the Energy Regulatory Commission has proceeded upon the Requests on tariff determination for wastewaters purification (wastewater treatment), submitted by 14 water providers in areas with over 10.000 (equivalent) residents from all eight planned regions in the Republic of North Macedonia and has adopted respective Decisions on Determination of Tariffs for Wastewaters Purification (Wastewater Treatment) for the regulated period 2021-2023. The tariffs that are determined by the Energy Regulatory Commission, in accordance with the Methodology, are average tariffs, i.e., water service providers, within the determined frames, shall determine the amount of tariffs according to user categories. Table 7.10 Average tariff for wastewaters purification (wastewater treatment) for second regulated period 2021-2023 Реден Давател на водна услуга – Единица 2021 2022 2023 број прочистување на отпадни води мерка година година година 1 JKP Komunalec Sveti Nikole MKD/m³ 2.82 2.86 2.90 2 JKP Usluga Berovo MKD/m³ 15.23 15.48 15.74 3 KJP Vodovod Kochani MKD/m³ 14.19 14.27 14.46 4 JP Kolektorski Sistem Skopje MKD/m³ 25.17 25.71 26.11 5 JKP Komunalec Kichevo MKD/m³ 8.26 8.33 8.40 6 JKPD Komunalec Gevgelija MKD/m³ 14.51 14.46 14.31 7 JKP Komunalec Strumica MKD/m³ 11.89 12.07 12.25 8 JKP Plavaja Radovish MKD/m³ 27.93 28.64 29.55 9 JKP Niskogradba Bitola MKD/m³ 2.87 2.96 3.04 10 JP Vodovod i Kanalizacija Prilep MKD/m³ 17.61 18.04 18.38 11 JKP Proleter Resen MKD/m³ 12.24 12.37 12.43 12 JP Vodovod Kumanovo MKD/m³ 13.30 13.22 13.16 13 JP Vodovod i Kanalizacija Skopje MKD/m³ 0.83 0.84 0.86 14 JKP Vodovod Ilinden MKD/m³ 9.83 10.42 10.73
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Chart 7.24 provides review of average tariff for wastewaters purification (wastewater treatment) for second regulated period 2021-2023.
JKP Vodovod Ilinden JP Vodovod i Kanalizacija Skopje JP Vodovod Kumanovo JKP Proleter Resen JP Vodovod i Kanalizacija Prilep JKP Niskogradba Bitola JKP Plavaja Radovis JKP Komunalec Strumica JKPD Komunalec Gevgelija JKP Komunalec Kichevo JP Kolektorski Sistem Skopje KJP Vodovod Kochani JKP Usluga Berovo JKP Komunalec Sveti Nikole
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00
2023 2022 2021
Table 7.24 Average tariff for wastewaters purification (wastewater treatment) for second regulated period 2021-2023(MKD/m3) 7.5.4 TARIFFS FOR WASTEWATERS PURIFICATION (WASTEWATER TREATMENT) IN AREAS WITH LESS THAN 10.000 (EQUIVALENT) RESIDENTS The regulated period with established tariffs on water service of Wastewaters purification (wastewater treatment), for the water Service Providers, in areas with less than 10.000 (equivalent) residents is in the timeframe of three years, i.e., in the period from 2019 to 2021. The Energy Regulatory Commission establishes the range of water service tariff movements, while, upon proposition by the Water Service Providers, the final tariffs according to categories of users, are authorized by the Council of the Municipality of the area the water service is provided. In 2020, the Energy Regulatory Commission adopted one decision on the determination of the regulatory tariff for the water service referring to the wastewater’s purification (wastewater treatment) to areas with less than 10.000 (equivalent) residents such as: JKP Skopska Crna Gora Chucher Sandevo, establishing final tariffs according to user category, which are mandatory for this enterprise. The tariffs that are applied by the providers of the water service referring to the Wastewaters purification (wastewater treatment) for water service providers in areas with less than 10.000 (equivalent) residents in 2019 and 2020 are displayed in the Table below:
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Table 7.11 Tariffs on Wastewaters purification (wastewater treatment) in areas with less than 10.000 equivalent residents for 2019 and 2020 (MKD/m3)
households Other Water Service Provider Wastewaters purification (wastewater treatment) in No. Areas with less than 10.000 (equivalent) residents 2019 2020 2020/20 2019 2020 2020/20 Year Year 19 (%) Year Year 19 (%)
JP Vodovod i Kanalizacija Makedonski 1 7.06 7.05 -0,14% 15.00 15.00 0,00% Brod 2 JPKD Komunalec Polin Dojran 4.45 4.45 0,00% 4.45 4.45 0,00% 3 JKP Skopska Crna Gora Chucher Sandevo / 11.11 / / 25.56 / 4 JP Pelagonija Krivogastani 8.00 8.00 0,00% 8.00 8.00 0,00% The analyzes reveals that one out of three Water Service Providers of Wastewaters purification (wastewater treatment), compared to 2019, in 2020 have recorded decrease of the tariff for the category of households, while two have recorded no change in the tariff for the category of households. In 2020, regarding the tariff for the category of Other users for the water service referring to the wastewaters’ purification (wastewater treatment), all Water Service Providers have not changed the tariff compared to 2019. During 2020, for the first time was introduced regulatory tariff for the water service referring to wastewaters’ purification (wastewater treatment) for JKP Skopska Crna Gora Chucher Sandevo. The largest decrease of the tariff on wastewaters purification (wastewater treatment) for households is recorded by JP Vodovod i Kanalizacija Makedonski Brod by 0,14%. The charts below show the tariffs on wastewaters purification (wastewater treatment) in areas with over 10.000 (equivalent) residents, according to the category of households and other, for the years 2019 and 2020.
12 10
8 6 4 2
0 JP Vodovod i JPKD Komunalec Polin JKP Skopska Crna Gora JP Pelagonija Kanalizacija Dojran Chucher Sandevo Krivogastani Makedonski Brod
2019 2020
Chart 7.25 Tariffs for wastewaters purification (wastewater treatment) of the category of households, in areas with less than 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
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30
25
20
15
10
5
0 JP Vodovod i Kanalizacija JPKD Komunalec Polin JKP Skopska Crna Gora JP Pelagonija Makedonski Brod Dojran Chucher Sandevo Krivogastani
2019 2020
Chart 7.26 Tariffs for wastewaters purification (wastewater treatment) of the category of other, in areas with less than 10.000 (equivalent) residents, in 2019 and 2020 (in MKD/m3)
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LEGAL AFFAIRS
2020
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V I I I . L E G A L A F F A I R S
The Energy Regulatory Commission operates competences in accordance with provisions stipulated by the Law on Energy* and the Law on Setting Prices for Water Services., as well as in accordance with the provisions from the Law on Energy Efficiency*. In addition to the aforementioned laws, the Energy Regulatory Commission, as a sole, non-profitable regulatory body, in the procedures on protection of the rights of consumers, as well as in the procedures on establishing prices and tariffs for regulated energy activities, methodologies, tariff systems, certification, rules on energy sources market regulation, rules on complaints and dispute resolution, approval of acts adopted by energy activities performers and by the water service providers, providing access to information, accountability and transparency in operation, also applies the provisions of the Law on Administrative Procedure, the Law on Consumers Protection, the Law on Whistleblowers Protection, the Law of Free Access to Information of Public Interest, as well as all other positive regulations of the Republic of North Macedonia in regard to the work of state authorities. During 2020, in accordance with the authorizations laid down in the Law on Energy* and the Law on Energy Efficiency, the Energy Regulatory Commission has adopted or authorized 37 legal acts, ten as general acts, 15 acts in the field of electricity, two in the field of natural gas, five in the field of district heating, and one Rulebook in the field of oil derivatives. In 2020, the Energy Regulatory Commission has issued 54 licenses for energy activities performance, 50 referring to energy activity performance in the field of electricity, two in the field of natural gas, and two in the field of oil derivatives. In 2020, in the overall of 258 procedures on dispute decision making / dispute resolution before the Energy Regulatory Commission, 117 were adopted, 113 were rejected, dismissed, or suspended, and 28 disputes are in procedure for 2021. In 2020, in the overall of 14 Requests on Free Access to Information of Public Interest submitted to the Energy Regulatory Commission, all the requests were responded to.
8.1 LEGAL ACTS The Energy Regulatory Commission during 2020 has continued with the development of bylaws acts arising from the Law on Energy*, in the part of general acts, thus amending the existing general acts that result from the Law on Energy* (“Official Gazette of the Republic of Macedonia “no. 16/11, 136/11, 79/13, 164/13, 41/14, 151/14, 33/15, 192/15, 215/15, 6/16, 53/16 and 189/16) and the proceedings of the employees and the members of the Energy Regulatory Commission is completed normatively and legally, in all procedures in accordance with the authorities determined by law. At the same time, certain acts in all fields of energy were amended, thus correcting, and adequately supplementing all missing parts and ambiguities, which were addressed to during practical implementation. At the same time, the authorization, determined in Article 21 paragraph (8) of the Law on
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Energy Efficiency is adequately incorporated in the text of the Rules on District Heating Supply. During 2020, the Energy Regulatory Commission has adopted ten general acts regarding the operation of the Energy Regulatory Commission, four acts in the field of electricity, two in the field of natural gas, three in the field of district heating, and four in the field of oil derivatives. Also, during 2020, the Energy Regulatory Commission approved eleven acts that were prepared by the electricity distribution operators and two acts that were prepared by the district heating distribution operator. The Energy Regulatory Commission, on October 26th, 2020 concluded a new Collective Agreement, regulating the rights, obligations and responsibilities of employees and of the members of the Energy Regulatory Commission as contractual parties, thus harmonizing it with the positive legislation of the Republic of North Macedonia in the domain of working relations. Chart 8.1 displays a review of legal acts adopted or approved by the Energy Regulatory Commission during 2020.
Oil derivatives 4
district heating approved 2
District heating adopted 3
Natural gas 2
Electricity approved Electricity 10
adopted 4
General acts 10
0 2 4 6 8 10 12
Chart 8.1 Review of legal acts adopted or approved by the Energy Regulatory Commission during 2020
8.1.1 GENERAL ACTS During 2020, the Energy Regulatory Commission has adopted the following general acts: 1. Rulebook on the Usage of Official Vehicles and Personal Vehicles for Official Needs of the Energy and Water Services Regulatory Commission of the Republic of North Macedonia, adopted on January 24th, 2020; 2. Rulebook on the Financial Operation and Accounting, adopted on February 6th, 2020;
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3. Chart on Internal Audit in the Energy and Water Services Regulatory Commission of the Republic of North Macedonia, adopted on February 17th, 2020; 4. Rules of Procedure, adopted on March 30th, 2020; 5. Ethical Code, adopted on March 30th, 2020; 6. Rules on Complaints and Dispute Resolution, adopted on April 16th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 106/20; 7. Rulebook on the Data and Documents that are Considered as Business Secret, as well as on the Proceedings and the Measures for their Usage and Safeguarding, adopted on April 30th, 2020; 8. Rulebook amending the Rulebook on Licenses, adopted on April 30th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 114/20; 9. Rulebook on Office and Archive Operation in the Energy and Water Services Regulatory Commission of the Republic of North Macedonia, adopted on May 14th, 2020; 10. Rulebook amending the Rulebook on Licenses, adopted on October 5th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 246/20; The Rules of Procedure regulate the manner of operation in the Energy Regulatory Commission, which, beside the rest, regulates the issue of holding working meetings, public debates, preparatory sessions and sessions, in order to perform the operations that are under its authorization. The Ethical Code regulates the rights and obligations of the members of the Energy Regulatory Commission and of the employees in the professional and administrative services and assistance-technical staff, in relation to the provision of ethical behavior, in order to respect the following principles: − Valid operation; − Objective operation; − Autonomous proceeding; − Political objectivity and neutrality; − Efficient and economic use of assets; − Protection of the institution's image; − Confidentiality of information; − Professional operation; − Equal treatment of clients; − Professional and polite behavior with clients and − Avoiding conflict of interests. The Rules on Complaints and Dispute Resolution regulate the proceedings and the manner of decision-making of the Energy Regulatory Commission on:
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− Complaints, submitted by entities that demand the realization of a certain right determined in the Law on Energy and in the regulations and the rules adopted or approved by the Energy Regulatory Commission and − For resolution of disputes that result from the execution of agreements between performers of energy activities, performers of energy activities and consumers, as well as distribution and transmission system operators and users of those systems, in case contractual parties have agreed to it. The Rules on Complaints and Dispute Resolution determine the amount and the manner of paying the costs of procedures. In the procedure on complaint resolution, the Energy Regulatory Commission applies all the principles on which the administrative procedure is based, contained in the Law on General Administrative Procedure. The Commission that is formed by the Energy Regulatory Commission decides in the procedure of complaint and dispute resolution.
8.1.2 ACTS IN THE FIELD OF ELECTRICITY During 2020, the Energy Regulatory Commission has adopted the following acts in the field of electricity: 1. Rulebook on the expiry of the Rulebook on Electricity Prices for Tariff Consumers and the Rulebook on Electricity Prices for Suppliers in Last Resort, adopted on June 11th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 158/20; 2. Rulebook supplementing the Rulebook on the Manner and Conditions for Determining Maximum Allowed Revenue and Regulated Average Tariffs of Electricity Transmission, Electricity Market Organization and Management and Electricity Distribution, adopted on June 12th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 161/20; 3. Tariff System supplementing the Tariff System on Electricity Sale to Consumers Supplied by the Universal Supplier and the Supplier in Last Resort, adopted on June 12th, 2020, '’Official Gazette of the Republic of North Macedonia'’ no. 161/20; 4. Tariff System amending the Tariff System on Electricity Distribution to Consumers Connected to the Electricity Distribution System of Elektrodistribucija DOOEL Skopje, adopted on November 5th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 271/20; The Rulebook supplementing the Rulebook on the Manner and Conditions for Determining Maximum Allowed Revenue and Regulated Average Tariff for Electricity Transmission, Electricity Market Organization and Management and Electricity Distribution and the Tariff System supplementing the Tariff System on Electricity Sale to Consumers Supplied by the Universal Supplier and the Supplier in Last Resort, supplement these acts with provisions in order to harmonize with situations when a state of war, of emergency or state of crisis is declared, thus providing sufficient time to the members of the Energy Regulatory Commission to organize successful preparatory session (which
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in accordance with the Rules of Procedure is not held during the state of emergency), thus providing active participation of all interested parties during the creation of the content of the final qualitative decision, as well as publicity and transparency in the process of decision- making. The tariff System amending the Tariff System on Electricity Distribution to Consumers Connected to the Electricity Distribution System of Elektrodistribucija DOOEL Skopje regulates the categorization of connections for public lightning. Namely, from the experience on the manner of consumer connection, that are part of public lightning, not all consumers are connected and connect directly to low voltage busbars in transformer stations in medium voltage/ low voltage, but the majority is connected to low voltage branches, i.e., to a optimal manner depending on the technical conditions in the electricity distribution network. Hence, if it required that existing connections of public lightning must fulfill the existing criteria that derives from the Tariff System, it would mean that a reconstruction of parts of the existing electricity distribution network, construction of new parts of the network and other must be performed. This type of action by the electricity distribution system operator would cause additional unnecessary costs which would be charged to all users of the electricity distribution system. When connecting new consumers, which belong to public lightning, if the existing criterion from the Tariff System is applied, then it would signify that long new branches must be made in order to connect the connection directly to the low voltage busbars in transformer stations, or to build new transformer stations. This connection manner can increase the charge for connection and can also result with unnecessary construction of facilities that are not necessary or planned for construction in that moment or in the near future. Considering that the compensation for using the electricity distribution system differs for a different connection category, inequality is created among consumers that are part of public lightning even though electricity is intended for the same purpose. During 2020, the Energy Regulatory Commission has approved the following acts in the field of electricity: 1. Development Plan of the Electricity Transmission System for the period from 2020- 2029 of the Electricity Transmission Operator of the Republic of North Macedonia, the state-owned, joint-stock company on electricity transmission and electro- energy system management Skopje, approved on January 30th, 2020; 2. Grid Rules on Electricity Distribution of AD ELEKTRANI NA MAKEDONIJA, approved on February 6th, 2020 - „Official Gazette of the Republic of North Macedonia'’ no. 49/20; 3. Rules amending the Rules on Electro-energy System Balance, adopted on February 10th, 2020 “Official Gazette of the Republic of North Macedonia'’ no. 49/20; 4. Model of Electricity Purchase Agreement of EVN HOME DOO Skopje, Association for the Provision of the Public Service of Electricity Supply, approved on March 30th, 2020;
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5. Development Plan of the Electricity Transmission Network for 2020 of the Electricity Transmission Operator of the Republic of North Macedonia, the state- owned, joint-stock company on electricity transmission and electro-energy system management , Skopje, approved on July 13th, 2020; 6. Electricity Distribution Grid Maintenance Plan for 2020 of Elektrodistribucija DOOEL Skopje, Association on Electricity Distribution, approved on July 20th, 2020; 7. Electricity Distribution Grid Maintenance for 2020 of AD „Elektrani na Severna Makedonija” - Podruznica Energetika, approved on July 23rd, 2020; 8. Plan on Electricity Loss Reduction in the Electricity Transmission System for the period from 2020-2023 of the Electricity Transmission System Operator of the Republic of North Macedonia, the state-owned, joint-stock company on electricity transmission and electro-energy system management , Skopje, approved on August 27th, 2020; 9. Auction Rules on Allocation of Cross-Border Transmission Capacities in the Border with Republic of North Macedonia- Republic of Bulgaria for 2021, approved on October 19th, 2020; 10. Auction Rules on Allocation of Cross-Border Transmission Capacities in the Border with Republic of North Macedonia- Republic of Serbia for 2021, approved on October 19th, 2020; 11. Rules amending the Rules on Allocation of Transmission Capacities of the Electricity Transmission System Operator of the Republic of North Macedonia, the state- owned, joint-stock company on electricity transmission and electro-energy system management Skopje, approved on December 10th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 294/20;
8.1.3 ACTS IN THE FIELD OF NATURAL GAS During 2020, the Energy Regulatory Commission has adopted the following acts in the field of natural gas: 1. Rulebook supplementing the Rulebook on the Determination of Maximum Allowed Revenue and Regulated Average Tariffs of Natural Gas Transmission, Natural Gas Market Organization and Management and Natural Gas Distribution, adopted on June 12th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 161/20; 2. Tariff System changing the Tariff System on Natural Gas Transmission and Natural Gas Market Organization and Management, adopted on December 24th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 312/20; The Rulebook supplementing the Rulebook on the Determination of Maximum Allowed Revenue and Regulated Average Tariffs of Natural Gas Transmission, Natural Gas Market Organization and Management and Natural Gas
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Distribution supplements the act with provisions in order to harmonize it with situations when a state of war, of emergency or state of crisis is declared, thus providing sufficient time to the members of the Energy Regulatory Commission to organize successful preparatory session (which in accordance with the Rules of Procedure is not held during the state of emergency), thus providing active participation of all interested parties during the creation of the content of the final qualitative decision, as well as publicity and transparency in the process of decision-making. The Tariff System changing the Tariff System on Natural Gas Transmission and Natural Gas Market Organization and Management, regulates the manner of the determination of tariffs on natural gas transmission for the period from January 1st, 2021 to December 31st, 2021, according to consumer categories, because the tariff system provided initiation of the charging process application per capacity and input/output concept for the tariff of natural gas transmission.
8.1.4 ACTS IN THE FIELD OF DISTRICT HEATING During 2020, the Energy Regulatory Commission has approved the following acts in the field of district heating: 1. Grid Rules on the District Heating Distribution of the Association of District Heating Distribution DISTRIBUTION OF HEAT BALKAN ENERDZI DOOEL Skopje, approved on May 14th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 132/20; 2. Rulebook supplementing the Rulebook on District Heating and System Services Price Determination, adopted on June 12th, 2020, '’Official Gazette of the Republic of North Macedonia'’ no. 161/20; 3. Rules amending the Rules on District Heating Supply, adopted on September 24th, 2020, “Official Gazette of the Republic of North Macedonia'’ no. 233/20; 4. Grid Rules supplementing the Grid Rules on District Heating Distribution of the Association of District Heating Distribution DISTRIBUTION OF HEAT BALKAN ENERDZI DOOEL Skopje, approved on May 14th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 277/20; 5. Rules amending the Rules on District Heating Supply, adopted on December 24th, 2020, “Official Gazette of the Republic of North Macedonia'’ no. 312/20; The Rulebook supplementing the Rulebook on District Heating and System Services Price Determination supplements Distribution supplements the act with provisions in order to harmonize it with situations when a state of war, of emergency or state of crisis is declared, thus providing sufficient time to the members of the Energy Regulatory Commission to organize successful preparatory session (which in accordance with the Rules of Procedure is not held during the state of emergency), thus providing active participation of all interested parties during the creation of the content of the final qualitative decision, as well as publicity and transparency in the process of decision-making.
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The Rules amending the Rules on District Heating Supply from September 24th, 2020, were harmonized with the Law on Energy Efficiency*, and the disconnection conditions and procedure at the request of the owner of residential, residential-business, business-residential and residential facilities where the charge is distributed through one metering device in the entry of the district heating substation and the release from conducting this procedure by exception. These Rules also precise the manner and documentation of proving the right of the owner, who lives or provides for use the unit of the facility, to be released from the charge for engaged heating power (fixed part) from the charge for district heating, which is determined in accordance with the Tariff System on District Heating Sale. The Rules amending the Rules on District Heating Supply from December 24th, 2020, precise the manner and procedure related to the individual temporary disconnection of the special unit of the facility which is connected for the first time to the district heating distribution system.
8.1.5 ACTS IN THE FIELD OF OIL DERIVATIVES During 2020, the Energy Regulatory Commission has adopted the following acts , in the field of oil derivatives: 1. Rulebook amending the Rulebook on the Formation of Highest Retail Prices of Separate Oil Derivatives and Transport Fuels, adopted on April 9th, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 91/20; 2. Rulebook on the Formation of Highest Retail Prices of Separate Oil Derivatives and Transport Fuels, adopted on April, 24th, 2020, '’Official Gazette of the Republic of North Macedonia'’ no. 108/20; 3. Rulebook amending the Rulebook on the Formation of Highest Retail Prices of Separate Oil Derivatives and Transport Fuels, adopted on May 22nd, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 133/20; 4. Decision on the determination of the escalated density е and the deescalated density d of each oil derivative and transport fuel, the amount of the charge P for premium, transport costs T to the storage in the Republic of North Macedonia and the amount of the compensation D for operating costs through the storage and trade margin with included transportation costs from the storage to the gas stations and to end consumers, adopted on October 22nd, 2020, „Official Gazette of the Republic of North Macedonia'’ no. 253/20; The Rulebook on the Formation of the Highest Retail Prices on separate Oil Derivatives and Transport Fuel, regulate the manner of calculation, publication and application of highest retail prices of separate oil derivatives and transport fuels in the market of crude oils, oil derivatives and transport fuels in the Republic of North Macedonia, which are applied by wholesale and retail traders with oil derivatives and transport fuels.
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8.2 LICENSES The licenses issued by the Energy Regulatory Commission are displayed in the Chart below distributed according to separate fields, and active licenses on December 31st, 2020. Natural gas: 34
District heating: 7
Oil derivatives: Electricity: 36 345
Chart 8.2 Active Licenses according to fields, December 31st, 2020
In accordance with the Law on Energy* and the Rulebook on licenses, the Energy Regulatory Commission performs the issuance, change, extension, transfer, suspension, revocation or validity expiration of licenses for energy activity performance, temporary and trial licenses, as well as decisions for registration in the Registry on Foreign Traders and Suppliers of Electricity and Natural Gas.
8.2.1 LICENSES IN THE FIELD OF ELECTRICITY During 2020, the Energy Regulatory Commission has adopted: − 5 Decisions for issuing Licenses on Electricity Trade; − 1 Decision for extension of the License on Electricity Trade; − 43 Decisions for changing the Licenses on Electricity Trade; − 1 Decision for Expiry of the License on Electricity Trade; − 4 Decisions for issuing Licenses on Electricity Supply; − 30 Decisions for changing the Licenses on Electricity Supply; − 1 Decision for Expiry of the License on Electricity Supply; − 42 Decisions for issuing Licenses on Electricity Production; − 1 Decision for transfer of the License on Electricity Production; − 1 Decision for Refusing the Request for issuing the License on Electricity Production; − 3 Decisions for Expiry of the License on Electricity Production; − 9 Decisions for issuing temporary Licenses on Electricity Production;
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− 1 Decision for changing the temporary License on Electricity Production; − 5 Decisions for issuing Licenses on Trial Operation of Electricity Production; − 2 Decisions for Extension of the License on Trial Operation for Electricity Production and − 1 Decision for changing the License on Combined Electricity and District Heating Production; In the period from 2004 to December 31st, 2020, the Energy Regulatory Commission has issued a total of 453 Licenses in the field of electricity, whereby, 345 are active by the end of 2020 (Table 8.1). Table 8.1 Active Licenses in the field of electricity, according to activities, in December 31st, 2020
Energy activity Number of active licenses
electricity transmission 1 electricity market organization and management 1 electricity distribution 2 Electricity production 247 Electricity supply 34 Electricity trade 60 total 345
8.2.2 LICENSES IN THE FIELD OF NATURAL GAS During 2020, the Energy Regulatory Commission has adopted: − 3 Decisions for changing the Licenses on Natural Gas Distribution; − 14 Decisions for changing the Licenses on Natural Gas Trade; − 1 Decision for issuing License on Natural Gas Supply; and − 6 Decisions for changing the Licenses on Natural Gas Supply. In the period from 2004 to December 31st, 2020, the Energy Regulatory Commission has issued a total of 43 in the field of natural gas, whereby, 34 are active by the end of 2020 (Table 8.2). Table 8.2 Active Licenses in the field of natural gas, according to activities, in December 31st, 2020
Energy activity Number of active licenses
Natural gas transmission 1 Management of the natural gas transmission system 1
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Natural gas market organization and management / Natural gas distribution 3 Natural gas supply 10 Natural gas supply in last resort 4 Natural gas trade 15 total 34
8.2.3 LICENSES IN THE FIELD OF DISTRICT HEATING During 2020, there was no adoption of new decisions on licenses in the field of district heating. In the period from 2004 to December 31st, 2020, the Energy Regulatory Commission has issued a total of 17 in the field of natural gas, whereby, 7 are active by the end of 2020 (Table 8.3). Table 8.3 Active Licenses in the field of district heating, according to activities, in December 31st, 2020
Energy activity Number of active licenses district heating distribution 2 district heating supply 2 district heating production 1 regulated district heating generation 2 total 7 In October 2019, the District Energy Systems AD Skopje, an association established by the City of Skopje, has submitted a Request for a License for Energy Activity Performance of District heating Distribution. In 2020, the procedure is still open without a final decision.
8.2.4 LICENSES IN THE FIELD OF OIL DERIVATIVES During 2020, the Energy Regulatory Commission has adopted: − 3 decisions on issuing a license on wholesale trade of crude oil, oil derivatives, biofuels and transportation fuels, − 3 decisions on changing licenses on wholesale trade of crude oil, oil derivatives, biofuels and transportation fuels. In the period from 2004 to December 31st, 2020, the Energy Regulatory Commission has issued a total of 63 Licenses in the field of crude oil and oil derivatives, whereby, 36 are active by the end of 2020 (Table 8.4). Table 8.4 Active Licenses in the field of oil derivatives, according to activities, in December 31st, 2020
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Number of Energy activity active licenses crude oil processing and oil derivatives production 1 Production of fuels designated for transportation, with mixture of fossil fuels and 2 biofuels transportation of crude oil through oil pipelines; / transportation of oil derivatives via product lines; 1 wholesale trade of crude oil, oil derivatives, biofuels and transportation fuels 32 total 36
8.2.5 LICENSES IN OTHER FIELDS During 2020, the Energy Regulatory Commission has adopted: - 3 Decisions on Termination of the Licenses in the field of geothermal energy, - 1 Decision on Termination of the License on coal production and processing, - 4 Decisions on Termination of the License on biofuel production and - 5 decisions on Termination of Licenses on the storage of crude oil, oil derivatives, biofuels, and transportation fuels. The decisions on the Termination of Licenses are adopted by acting in official capacity, considering that they are not determined as energy activities for issuing a license in accordance with the Law on Energy*.
8.3 CONSUMER PROTECTION Within the scope of work and implementation of competencies, the Energy Regulatory Commission a special accent places on the protection of the rights of consumers by monitoring status and electricity market functionality, and oversight of mistreatment by dominant position on the energy markets, aiming to provide benefits to consumers based on efficiency and competitive functionality of energy markets. The implementation of all activities on protection of the rights of consumers are based on the principles of transparency, non-discrimination, and objectivity. The undertaken measures on implementation of the protection of consumers’ rights are respectfully elaborated within the Rules on supply of certain types of energy, whereby, closer regulation is applied to issues on treatment of vulnerable categories of consumers, as well as the obligations on information dissemination of all aspects referring to the service and quality service sustainability provided by energy activities performers. If consumers’ rights are breached, within the Rulebook on Complaints and Dispute Resolution, mechanisms are included to assist consumers in procedure initiation on protection of their rights, which in first instance is before the bodies of the respective energy activity performer, followed by second instance decision by the Commission, established by the Energy Regulatory Commission, in case the consumer and the energy activity performer shall fail to reach compliance in the first instance procedure. In addition to the prior stipulated instruments and mechanisms, consumers
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protecting their rights, can initiate procedures established by the Law on Handling Complaints and Proposals, the Law on Free Access to Information of Public Interest, and the Law on Whistleblowers Protection. Namely, provisions stipulated by the cited laws, the quality and volume of protection of the right, are obligations expanded under the Energy Regulatory Commission in regard to accountability through providing access to all information available by the Energy Regulatory Commission in relation with admission of reports based on suspicion or knowledge of effectuated, or effectuation in process or is probably with intention to be effectuated a criminal deed or misdemeanor, or any other illegal or prohibited procedure affecting the public interest. Monitoring the trends on electricity price movement, the Energy Regulatory Commission submitted a draft to the Ministry of Economy and to the Ministry of Labor and Social Policy, proposing the enlargement of the range of vulnerable electricity consumers belonging to the households category which are defined in the annual program on vulnerable consumer protection. During the formulation of the proposals, the Energy Regulatory Commission has taken into consideration the whole situation with Covid -19 pandemics, that influenced a part of electricity consumers. The Energy Regulatory Commission proposed to include the following consumer categories: - Consumers- households, that receive continuous social monetary assistance in accordance with the law, - Consumers-households in which no one is employed, nor are users of regular social monetary assistance and have no other revenue source, - Consumers- households, in which no one is employed, is user of monetary assistance by the Employment Agency in case of unemployment, at the amount of regular social monetary assistance and the same is the only revenue of the household, - Consumers- households with more than two members, with one pensioner receiving minimum pension (first group) and the same is the only revenue for the household, - Consumers- households with more than two members, with only one employed receiving minimum wage, at the amount of regular social monetary assistance and there are no revenues in the household, - Consumers- households, in which no one is employed, starting from April 1st, 2020, user of monetary assistance by the Employment Agency in case of unemployment, at the amount of regular social monetary assistance and in the household there is additional revenue at the amount of minimum wage, to the end of the pandemics.
Beside the proposals on expanding the range of vulnerable consumers, the Energy Regulatory commission, via written or uttered proposals, has insisted to comprise specific consumers that need assistance for covering a portion of bills on consumed energy. The Energy Regulatory Commission has also indicated that the monetary assistance must be used only for the intended purpose and with the aim of more efficient implementation of such measures, two methods were proposed: - To allocate energy vouchers to vulnerable consumers, which can be used by the vulnerable consumer exclusively for paying the bills towards the suppliers that provide public service or - To provide payment of these bills issued by the suppliers that provide public service, it was proposed that the bills be paid in the name of vulnerable Annual Report on operations of the ERC in 2020 - 204 -
consumers by the Budget of the Republic of North Macedonia to suppliers that provide public service. 8.3.1 COMPLAINTS TO DISTRICT HEATING SUPPLIERS The types of complaints that are submitted to district heating suppliers is enclosed in Table 8.5. Based on data and information received from the District Heating Suppliers, the below attached Table 8.6 reveals complaints submitted to District Heating Suppliers, according to type of groups of consumers (households, education, and other consumers), and according to the nature of complaints, including the data on the number of complaints, authorized and rejected, as well as the average response timeframe according to number of working days. Table 8.5 Types of complaints in the field of district heating
Type of complaint Descr iptio n А Facilities connectivity (delays, obstacles, other) B Consumers connectivity (delays, obstacles, other) Metering (metering devices readings, functionality of metering devices, other) C
D Continuant supply / permanent flow Undelivered Invoice, amount of invoice, manner on calculation, amount of debt, E calculation of interest, appeals, consumer switch, payment switch, installment payment, negotiations, double payments of bills, etc. Preliminary measure off square meters, installed / engaged capacity, status check connected / disconnected, water discharge, diagram change of level of metering F place, measure off outbuildings / attachments, manner on calculation and array of energy per metering place, connection and disconnection requests, etc. Quality of Heating Service (lower temperature than prescribed to consumer, etc.) G
H Other
Table 8.6 Complaints submitted to District heating Suppliers, in 2020
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Consumer group Complaints А B C D E F G H total
Households Received 25 11 1 2 1,397 620 50 33 2,139
Education Received 1 0 0 0 1 0 0 0 2
Other consumers Received 22 0 0 0 582 71 5 62 742
Households Approved 2 4 1 0 466 197 26 7 703
Education Approved 0 0 0 0 1 0 0 0 1
Other consumers Approved 10 0 0 0 231 15 0 0 265
Households rejected 0 0 0 0 0 0 0 0 0
Education rejected 0 0 0 0 0 0 0 0 0
Other consumers rejected 0 0 0 0 0 0 0 0 0 Response Households 45 74 7 9 180 156 55 42 timeframe (working days) Response timeframe Education 15 0 0 0 15 0 0 0 (Working days) Response timeframe Other consumers 75 0 0 0 150 126 7 57 (Working days) Data enclosed in the tables, amongst other, clearly reveal that in 2020, a total of 2.139 complaints have been submitted by households, 2 by the category of education and by other consumers a total of 742 complaints. Most of submitted complaints refer to undelivered invoice, amount of invoice, manner on calculation, amount of debt, calculation of interest, appeals, consumer switch, payment switch, payment in installments, agreements and invoices paid twice, as well as preliminary measuring of square meters, installed / engaged capacity, status check connected / disconnected, water discharge, change of diagram on metering place level, measuring off outbuildings / attachments, manner and calculation on array of energy per metering place, connection and disconnection requests.
8.3.2 COMPLAINTS TO ELECTRICITY SUPPLIERS Based on data and information received by the Universal Electricity Supplier, according to the foreseeable seven types of complaints per seven groups of consumers (consumers – 35 kV, consumers – 10 (20) kV, other consumers I level, other consumers II level, public lighting, households 1T and 2T), during 2020, only the group of households consumers 2T has submitted complaints referring to complaints type A only, i.e., issues related to contracts and sale (non-loyal commercial terms / switch to commercial terms, lack of information, confirmation of contract, right to contract withdrawal, payments, inconvenient contractual terms, minimum timeframe on reaching agreement, etc.), as it is enclosed in the Table below.
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Table 8.7 Number of Complaints submitted to the Universal Electricity Supplier, , during 2020
Issues related to Consumer group Complaints contracts and sale Received 47,431
Approved 39,123 Households 2T rejected 7,832 Response 58 timeframe (working days) Only the group of households out of the three provided consumer groups (large consumers, small consumers, and households), has communicated with the universal supplier during 2020, at a volume displayed in the Table below. Table 8.8 Communication of consumers with the Universal Electricity Supplier during 2020 Issues related to Consumer group Complaints contracts and sale Phone calls 860,216
E-mail 84,668 Households 2T Visits to user center 184,819
Written requests 0 Total 1,129,703
1,000,000 80,0% 860,216 76,1% 900,000 70,0% 800,000 60,0% 700,000 50,0% 600,000 500,000 40,0% 400,000 30,0% 300,000 184,819 20,0% 200,000 84,668 16,4% 100,000 0 10,0% 7,5% 0,0% 0 0,0% Phone calls E-mail Visit to user center Written requests
Number Share
Chart 8.3 Structure of communication channels of consumers with the Universal Electricity Supplier, during 2020 The Chart attached above indicates that the dominant way of communication by consumers with the Universal Electricity Supplier is
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over phone (76%), followed by direct visits to users’ center (16%), and communication via e-mail (8%).
8.3.3 CONNECTION TO AND DISCONNECTION FROM THE ELECTRICITY DISTRIBUTION SYSTEM The tables below disclose data received by the Electricity Distribution System Operator, Elektrodistribucija, on activities related to connection and disconnection of consumers and producers in the Electricity Distribution System during 2020. Table 8.9 Activities by Elektrodistribucija related to requests of consumers for connection to the Electricity Distribution System in 2020
Consumers Activity Total 35 kV 10 kV 0.4 kV Households Other Requests for connection 12,738 0 0 12,738 0 0
Approved requests 10,347 0 0 10,347 0 0
Realized connections 8,822 0 0 8,822 6,825 1,997
Average timeframe (days) 54.1 0.0 0.0 54.1 53.5 56.0
Table 8.10 Activities by the Electricity Distribution System Operator referring to connection of producers in 2020
Activity Producers Total 35 kV 10 kV 0.4 kV Requests for connection 112 21 91 0 Approved requests 84 15 69 0 Realized connections 17 3 14 0 Average timeframe (days) 160.9 13.0 192.6 0.0
Table 8.11 Review of disconnected consumers per metering places in ratio with average number of connections in the period from 2018 to 2020
2018 2019 2020
Disconnected- unpaid bills 73,721 76,317 46,173 Average number of connections 732,232 793,169 873,829 Share of disconnected consumers 10,07% 9,62% 5,28% The data disclosed in Table 8.11 indicates the existence of gradual trend of reduction in the share of disconnected consumers due to unpaid bills, according to metering places, in relation to average number of connections in the period from 2018 to 2020.
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8.3.4 COMPLAINTS AND DISPUTES Dispute resolution procedures are conducted in accordance with the Rules on complaints and dispute resolution3. During 2020 no procedure was conducted for dispute resolution. The procedure on complaint resolution is conducted by the Complaints Resolution Commission in the field of electricity and the Complaints Resolution Commission in the field of district heating within the Energy Regulatory Commission. During 2020, an overall of 258 complaint resolution procedures were initiated before the Energy Regulatory Commission, whereby, 18 were initiated by legal entities, and 240 initiated by physical entities. The Complaints Resolution Commission in the field of electricity has held 26 sessions, and the Complaints Resolution Commission in the field of district heating has held 5 sessions. Table 8.12 Cross-reference of initiated dispute resolution procedures in 2018, 2019 and 2020
2020/2018 2020/2019 2018 2019 2020 % % Electricity 212 194 213 0,47% 9,34%
District heating - - 45 - -
Natural gas - - - - -
Oil and oil derivatives - - - - -
Total 212 194 258 28,31% 19,57%
The above-attached table indicates that in 2020, the number of initiated complaint resolution procedures is by 19,57 % increase in relation to 2019, while compared to 2018, the number shows increase by 28,31 %. The adopted decisions in relation to initiated complaint resolution procedures in 2020 is displayed in Table 8.13. Table 8.13 Adopted decisions in relation to initiated complaint resolution procedures in 2020
Ongoing Dismisse Adopted On hold Rejected procedure in d 2021 and Electricity 93 17 67 13 23 District 24 0 15 1 5 heating
3 '’Official Gazette of the Republic of North Macedonia'’ no. 106/20
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The comparison of adopted decisions in relation to initiated complaint resolution procedures in 2018, 2019 2020 is displayed in Table 8.14. Table 8.14 Comparison of adopted decisions in relation to initiated complaint resolution procedures in 2018, 2019 2020
2018 2019 2020 Adopted 89 80 117 On hold 16 20 17 Rejected 40 67 82 Dismissed 1 5 14 Ongoing procedure in the upcoming year 66 22 28 Total 212 194 258
8.3.5 APPLICATIONS (COMPLAINTS) During 2020, in accordance with the Law on Handling Complaints and Proposals4, 154 applications (complaints) from legal and physical entities were submitted of which 149 on issues in the field of electricity, 3 on issues in the field of district heating and 2 on issues in the field of water services (Table 8.15). Table 8.15 Submitted applications (complaints) to the Energy Regulatory Commission on issues from the field of electricity in 2020
Electricity Legal entities Physical Other Total entities s Submitted 18 127 1 154 Proceeded 18 135 1 154 Ongoing 0 4 0 4 Forwarded to 0 0 0 0 jurisdiction The comparison of submitted applications (complaints) in 2018, 2019 and 2020 is displayed in Table 8.16. Table 8.16 Cross-reference of initiated dispute resolution procedures in 2018, 2019 and 2020
2019/ 2020/ 2018 2019 2020 2018 2019 (%) (%) Electricity 47 70 149 48.94 112.86 District heating 2 - 3 - - Natural gas - - - - - Oil and oil derivatives - - - - - Water services - - 2 - - Total 49 70 154 42.86 -
4 '’Official Gazette of the Republic of Macedonia'’ no. 82/08. 13/13, 156/15 and 193/15
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8.3.6 CONSUMER’S REMINDER In the course of protection of consumers of electricity, prior to concluding the contract for electricity supply, the Rules on Electricity Supply foresee for each supplier to provide the consumer with a copy of the consumer’s reminder in timely manner, with content of practical information for the rights of consumers presented in a clear and unambiguous manner, without causing confusion, and without misleading the consumer in the decision to conclude or terminate or extend the existing contract for electricity supply. The form and content of the consumer’s reminder is authorized by the Energy Regulatory Commission. During 2020, on prior compliance, the Energy Regulatory Commission has adopted 4 decisions on approval of the form and content of the consumer’s reminder submitted by electricity suppliers. The Consumer’s Reminder was approved to the listed below electricity suppliers: - SOLARPRO PAUER DOOEL Skopje, approved on January 9th, 2020, - Association on Electricity Sale GENI-I PRODAZBA NA ENERGIJA DOOEL Skopje, approved on January 30th, 2020, - Association on Trade and Services ENERGIJA GAS END PAUER Skopje, approved on July 30th, 2020 and - Association on Trade, Circulation and Services VANGARD DOO Skopje, approved on July 20th, 2020.
8.4 COURT PROCEDURES 8.4.1 ADMINISTRATIVE DISPUTES Appeals on initiating Administrative Dispute before the Administrative Court submitted prior to 2020, against Decisions by the Energy Regulatory Commission, resulted with 83 ongoing Administrative Disputes in 2020. Therefore, in 2020, 4 were adopted, 63 were rejected or dismissed as unfounded and for 16 administrative disputes the procedures continued in 2021 too. During 2020, 19 Administrative Disputes were initiated against Decisions adopted by the Energy Regulatory Commission, whereby, one was adopted, two were dismissed or rejected as unfounded in 2020, and the other 16 procedures are ingoing in 2021 (Table 8.17) Table 8.17 Review of Administrative Disputes initiated against decisions adopted by the Energy Regulatory Commission, prior and in 2020
Procedure initiated initiated Resolved in 2020 Ongoing in 2020 before duri Prior to Prior to 2020 ng In 2020 In 2020 2020 2020 2020 67 3 16 16 Administrative 83 19 disputes Total 70 Total 32
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8.4.2 OTHER COURT PROCEDURES In 2020, 20 proposals for issuing a decision by the competent notaries for a permit for execution based on a reliable document for invoices from 2017 were submitted and 25 proposals for issuing a decision by the competent notary for a permit for execution on the basis of a reliable document for invoices from 2018 and 2019. Three of the initiated procedures for claims from 2017 continued before the competent basic courts, 22 claims were collected, and 20 claims are in the phase of execution. At the same time, during 2020, taking into consideration the situation with Covid-19, activities were undertaken intensively for voluntary collection of charges related to invoices from 2020. The debtors were usually contacted via phone call, warnings were delivered to them which resulted to significant increase in charge collection. More precisely, out of 267 prepared and delivered invoices for collecting the claims from 2020, approximately only 20 debtors have not paid the claims issued by the Energy Regulatory Commission. For which amicable collection of claims is being conducted intensively, so that no activities with enforced payment be undertaken, which would result with increased charges. In 2020, the Energy Regulatory Commission has not submitted a request for initiating misdemeanor procedures. Ongoing is a misdemeanor procedure on only one request from the overall of requests on initiation of misdemeanor procedure submitted in the past years. In 2020, against the Energy Regulatory Commission no procedures in the field of labor dispute were initiated. This type of procedure initiated by members to the Energy Regulatory Commission due to premature expiration of membership mandate, there is one dispute which is still ongoing.
8.5 INFORMATION OF PUBLIC INTEREST The Energy Regulatory Commission, as an owner of information, implements the Law on Access to Information of Public Interest5 which started to apply on November, 29th, 2019. While implementing the obligations deriving from the cited law, the Energy Regulatory Commission has appointed officials from the personnel of the professional offices in the Energy Regulatory Commission to moderate/ negotiate information created or available to the Energy Regulatory Commission. Review of undertaken activities is listed below: − In 2020, an overall of 14 requests for free access to information of public interest were received, − In 2020, the Energy Regulatory Commission, has provided responses to 17 requests for free access to information of public interest, three received in late days of 2019 and are proceeded in 2020;
5 ‘’Official Gazette of the Republic of North Macedonia'’ no. 101/2019
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− In 2020, the Energy Regulatory Commission has not dismissed nor rejected any of the requests for free access to information of public interest; − In 2020, the Energy Regulatory Commission has responded to all of the requests for free access to information of public interest; − Against the first instance decisions made by the Energy Regulatory Commission, 5 (five) appeals were launched to the Agency for Protection of the Right to Free Access to Public Information, 4 (four) of which due to unsatisfactory response and 1 (one) due to late response upon the request; − The Agency for Protection of the Right to Free Access to Public Information has adopted 5 (five) appeals against the decisions of the Energy Regulatory Commission and has adopted 5 (five) decisions validating the appeals, which then the Energy Regulatory Commission processed and delivered a response to the requester; − The Energy Regulatory Commission has altered 5 (five) first instance decisions. Namely, with regards to the 5 (five) adopted appeals with decisions by the Agency for Protection of the Right to Free Access to Public Information against the decisions of the Energy Regulatory Commission, the ERC has proceeded in accordance with the decisions of the Agency for Protection of the Right to Free Access to Public Information and has delivered the requested information to the requesters. − The Energy Regulatory Commission has not dismissed nor rejected any appeals by the Agency for Protection of the Right to Free Access to Public Information.
8.6 IMPLEMENTATION OF THE LAW ON WISTLEBLOWERS PROTECTION Pursuant to the provisions of the Law on Whistleblowers6, the Energy Regulatory Commission has appointed one official from the personnel of the professional offices to conduct the procedure on submitted report by a whistleblower under protected internal reporting, or upon protected external reporting. Reports relate to suspicion or acknowledgment of committed, is committed or is probable to commit a criminal act, an illegal or any prohibited act which shall harm or endanger public interest. In 2020, no internal, or external reporting on illegal or prohibited acts is submitted to the Energy Regulatory Commission.
6 „Official Gazette of the Republic of Macedonia'’ no. 19/15
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INTERNATIONAL ACTIVITIES
2020
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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
Beside the limiting factors and the new reality that was imposed by the global COVID -19 pandemic that allowed communication and participation in international events only via digital platforms, the Energy Regulatory Commission has had a successful year in an international plan. The year of 2020, beside the active participation in current international associations and their operational institutions from the field of energy and water services, was marked by the participation in several successful international projects with specific and remarkable results. Foremost, is the recognition by the Energy Community Secretariat, third year in a row, in their Annual Reports referring to implementation, that distinguishes the leading role of the Energy Regulatory Commission in the energy sector reforms within the Energy Community. This year, the Energy regulatory Commission shared first place with the regulatory body from Georgia. As part of the undertaken obligations under the Berlin process in 2015, for the countries of Western Balkan, on July 30th, 2019, the Energy Regulatory Commission has applied to the Agency for Cooperation of Energy Regulators - ACER, for participation in working groups of the ACER, thus in the Monitoring, Integrity and Transparency Working Group, the Electricity Working Group, and the Natural Gas Working Group. The application was reviewed by the Energy Community Secretariat, and on January 28th, 2020, the Secretariat has submitted to ACER a positive assessment on the application, followed by analysis in relation to compliance of law and bylaw regulation with the European Union Legislation referring to the internal market of electricity and natural gas, the independence, and operations by the Energy Regulatory Commission, etc. The afore mentioned has created conditions for the Energy Regulatory Commission to be awarded with the status of observer at ACER, enabling participation and experience exchange within working bodies of this association with energy regulatory members from the European Union country members. Toward the end of 20202, the Energy Regulatory Commission has updated its preliminary application with new achievements related to its authorizations.
9.1 ENERGY COMMUNITY REGULATORY BOARD (ECRB) The Energy Community is founded based on the Treaty for Establishing Energy Community, signed on October 25th, 2005 by the European Commission and South East Europe Countries (Albania, Bulgaria, Bosnia and Hercegovina, Romania, Serbia, Croatia, Montenegro, Kosovo, and North Macedonia). The signing of the Treaty for Establishing Energy Community was ratified by the signatory countries, and has entered into force on July 1st, 2006, declaring the establishment of the Energy Community. As by the end of December 31st, 2020, members of the Energy Community are:
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• Nine signatory countries, as contracting parties (Albania, Bosnia and Hercegovina, Gorgia, Kosovo, North Macedonia, Moldova, Serbia, Ukraine and Montenegro); • The member countries of the European Union, as participants, and • Three countries as observers (Armenia, Norway, and Turkey). The functional effectuation of the Energy Community is within the institutions, listed below: • The Ministerial Council; • The Permanent High-Level Group; • The Energy Community Regulatory Board; • Electricity, Natural Gas, Oil and Social Issues Forums, and • The Energy Community Secretariat. The Energy Community Regulatory Board - ECRB is a coordinative institution of national regulators to the Energy Community for development of harmonized regulatory rules composed by representatives of signatory countries regulatory bodies, as contracting parties. The chairman of the Energy Community Regulatory Board was Marko Bislimoski, President of the Energy Regulatory Commission, who was elected as a chairman of the Board in December 2019. The Energy Regulatory Commission as a full member, significantly contributes to the organization and to the manner on functioning of the regional and European market of electricity and natural gas by undertaking active participation in the operations of the ЕCRB and the ЕCRB Electricity Working Groups (ECRB EWG), Natural Gas (ECRB GWG), Consumers and Retail Markets (ECRB CRM WG), and in the newly established Working Group for implementation of the Regulation Energy Markets Integrity and Transparency (ECRB REMIT WG). During 2020, the ECRB has held three meetings and twelve meeting by the Work Groups of the ECRB. Representatives from the Energy Regulatory Commission took part in the three meetings held by the ECRB, in nine meetings of the Work Groups of ECRB, as well as in the meetings held by the Forums for Electricity, Natural Gas and the European Energy Law, organized by the Energy Community Secretariat. During 2020, the Electricity Working Group (ECRB EWG) has performed activities on topics and issues listed below: • Introducing regulatory measures to support interconnection of day-ahead markets; • Activities in appointing operators of organized electricity markets, and nominating electricity operators; • Coordination with regards to the creation of climate for investment and possible cooperation with CEER and MEDREG; • Discussion on possible application of results from the Study on Capacity Mechanisms and system adequacy; • Providing 70% of the thermal capacity of cross-border transmission capacities to the electricity market;
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• Implementation of the CACM and FCA regulation; • Implementation of grid rules on connections of consumers and producers to the grids, and connections of direct current systems; • Status and Daily Electricity Market Development; • Development of the wholesale electricity market within the contracting parties of the Energy Community and monitoring according to the ACER indicators; • Implementation of Electricity Regional Daily Market, and interconnection of the Western Balkan Countries, and • Importance of cyber-security wholesale systems and markets functioning. During 2020, the Natural Gas Working Group (ECRB GWG) has performed activities on topics and issues listed below: • Wholesale natural gas market monitoring; • Implementation of procedures with congestion management and • Joint analysis of regulatory investment frame in the member states of ECRB, CEER and MEDREG. Participation on the 15 Gas Forums on main topics listed below: • Connection of the Western Balkans - future role of natural gas in the Western Balkans; • Green agenda for the Energy Community - decarbonization on first plan; • EU strategy on hydrogen and strategy and sector integration; • ENTSOG - new role of gas industry in the transition toward the economy with low level of carbon; • PECI-PMI list of new projects for gas infrastructure in the Energy Community and • Growth and opportunity for integration in the region of South East Europe. During 2020, the Consumers and Retail Markets Working Group (ECRB CRM WG) has performed activities on key topics listed below: • Preparation of the Report on Producers-Consumers within the Energy Community, legal and regulatory frame for support of small producers focusing on photovoltaic plants connected to the distribution network; • Development of the Report on Monitoring Electricity and Natural Gas Retail Markets within the Energy Community for 2019; • Continuing the preparation of the Report on Electricity and Natural Gas Quality of Supply, prepared by the joint working group of representatives from the CEER and the ECRB;
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• Providing data on the preparation of the draft-version of the Report for the next generation of consumers and digital channels of communication and • Preparation of a summary report from the provided data by contractual parties on electrification of transport (electric vehicles). In May 2020, the key topics and activities of the Working Group for implementation of the Regulation Energy Markets Integrity and Transparency (ECRB REMIT WG), within the Energy Community, has commenced its operation, and the key topics and activities are listed below: • Development of a Program on National Regulatory Body Capacity Building aiming to provide knowledge in diverse practical aspects on the implementation of REMIT in the European Union, cooperation with ACER, as well as the preparation and publication of reports. The person in charge for this activity is the representative from the Energy Regulatory Commission of the ECRB REMIT WG. • Preparation and approval of a Procedural Act pursuant to Article 16 of the REMIT on coordination of cross-border investigations, preparation of forms for reporting cases of cross-border investigations, notification of speculative transactions, publishing internal information, and delayed publishing, and • Preparation of a Form on establishing Register of Market Participants, as well as establishing of ECRB Code for Market Participants. In 2020, a Coordination group on Energy Derivatives (EDCG) was formed, which shall serve as a coordination platform and harmonization of activities related to the monitoring of energy derivatives, i.e., to electricity/natural gas derivatives. Namely, the evolution of energy markets has resulted with the introduction of new trading manners and instruments, thus energy market participants have developed energy derivative agreements that represent financial instruments. Hence, the need of closer cooperation and coordination with regulatory authorities from the field of energy and regulatory authorities from the field of finances in the member states of the Energy Community, which shall be realized within this working group, and presided by representatives of the Energy Community Secretariat. The first meeting of EDCG was held on November 2020, and the second in March, 2021 during which (3) three working subgroups were formed in order to conduct a more detailed analysis of the knowledge regarding energy derivatives and the degree of compliance of the legislative frame, as well as provision of adequate measures. Also, during 2020, members of the Energy Regulatory Commission have participated to several online events, meetings, and trainings organized by the Energy Community, two of which were organized by ACER and ECRB on the Regulation (EU) 2015/1222 on allocating capacities and congestion management and the Regulation (EU) 2016/1719 on long-term allocation of cross-border transmission capacities, then electricity market integration, influence of the package on clean energy upon the Energy Community, energy storage, clean energy for all in Europe, European energy legislation, specialized training for REMIT regulation, determination of projects from the field of electricity, natural gas and oil, which are of a particular interest for the Energy Community.
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In 2020, the Energy Regulatory Commission has provided a significant contribution with its commentaries regarding the documents that were reviews in the meetings of the Ministerial Council and the Permanent High-Level Group of high representatives of the Energy Community, to which members of the Ministry of Economy of the Republic of North Macedonia participate.
9.2 COUNCIL OF THE EUROPEAN ENERGY REGULATORS (CEER) The Energy Regulatory Commission participates as an Observer in the work of the Council of European Energy Regulators (CEER) with Headquarters in Brussels, Belgium. The Council of European Energy Regulators with Headquarters in Brussels, Belgium, is established in 2000 as an Association for European Independent Energy Regulators Cooperation. There are 39 Regulatory Bodies taking part in the CEER, whereby, 30 share status as members (Austria, Belgium, Bulgaria, Croatia, Cyprus, CESKA, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Island, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Holland, Norway, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, Sweden, and the Great Britain), while 9 (nine) countries (Albania, Bosnia and Hercegovina, Gorgia, Kosovo, Moldova, Montenegro, North Macedonia, Serbia, and Switzerland) share the status of an Observer. The Council of the European Regulators is constituted by a General Assembly, Board of Directors, six main working groups and other theme sub-groups. Taking participation in this Association, the Energy Regulatory Commission achieves significant experience in the practical implementation of the Third Energy Package Legislation on Energy Internal Market, and challenges to be met by the member states of the European Union in the creation of a single, competitive, efficient, and sustainable internal energy market of the European Union, also addressing the new packages of the European legislation. During 2020, the Energy Regulatory Commission have provided contribution to the preparation of the Report by the CEER on the implementation of the REMIT on national level, the Report on CEER on dynamic regulation, the research of CEER on the effects of Covid -19 upon the energy markets, as well as the participation of representative from the Commission in the joint team of the ECRB and the CEER in the development of the new Report on Electricity and Natural Gas Quality of Supply.
9.3 ENERGY REGULATORS REGIONAL ASSOCIATION (ERRA) The Energy Regulators Regional Association – ERRA is a Professional Association of Regulatory Bodies, with the aim to improve cooperation, experience exchange and strengthen capacities of regulatory bodies. Since 2004, the Energy Regulatory Commission is a full member of the Association. In 2020, the Energy Regulators Regional Association has reorganized working its working units, thus dissolving committees on licenses and on tariffs and prices, as well as the working group on retail markets and consumers,
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Which were replaced by the following working units: Committee on electricity market and economic regulation, committee on natural gas market and economic regulation, committee on renewable energy and the working unit on consumer protection. In the General Assembly of ERRA that took place virtually on September 17th, 2020, Andriana Nelkova-Chuchuk, member of the Energy Regulatory Commission, was elected as ERRA presidium member. During 2020, apart from the participation in the General Assembly and in the meeting of Chairman Committee, representatives of the Energy Regulatory Commission have actively participated in the newly formed working units, as well as in the following events organized by ERRA: - Committee on electricity market and economic regulation: o Mechanisms on price regulation of electricity markets that are in transition; o Using the flexibility of end consumers for consumption management; o Determination of tariffs for supporting consumers - generators; o Introducing a new data base on tariffs; o Increasing competitiveness in the electricity markets and o Preparing a working plan for the period 2020/2022. During 2020, three virtual meetings were held within this committee on June 15th, September 23d and November 19th. - Committee on natural gas market and economic regulation: o Preliminary results of the research conducted by ERRA in relation to natural gas offer and demand in member states, division and structure of the natural gas market, price regulation and other issues of interest of regulatory authorities; o Market liberalization and increase of competitiveness, with special accent to the transition from the centralized to the decentralized natural gas market; o Determination of transmission tariffs, with special accent to the following issues: Legal frame which is applied in the part of tariffs on natural gas transmission, which are regulated tariffs of the natural gas market in Turkey, description of the natural gas transmission network in Turkey, basic principles of making/ modeling tariffs and components of the request for revenues (CAPEX and OPEX): o Discussion regarding the need to introduce new issues in the working plan for the following two years, such as: Application of hydrogen in the member countries of ERRA, with special accent to the regulation, the regulatory experience with decarbonization and other and o Preparing a working plan for the period 2020/2022. During 2020, three virtual meetings were held within this committee on July 7th, September 30th, and November 26th. - Committee on renewable energy:
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o Conducting a research on the status of renewable sources within member states of ERRA; o Conducting a research regarding the influence of COVID-19 upon the development of renewable energy sources and o Preparing a working plan for the period 2020/2022. During 2020, three virtual meetings were held within this committee on July 9th, September 22nd, and November 18th. - The working group on consumer protection: o A report on retail electricity market functioning in 2018, prepared by the representative of the Energy Regulatory Commission in the previous working group on consumers and retail markets; o Regulatory implications and challenges in energy communities; o Natural gas measuring with subscription - the case with Turkey and o Preparing a working plan for the period 2020/2022. During 2020, three virtual meetings were held within this committee on July 9th, September 29th, and November 25th. - Celebration of the 20th anniversary of ERRA on December 11th, 2020. - Webinars on: Modeling electricity production and adequacy of the transmission system, June 3-4, 2020. - Liaison officer meeting, July 8th, 2020. - Webinars on: E-mobility, September 3-4, 2020. - Summer school on: Introduction to Energy Regulation, November 2-4, 2020. - Webinars on: The Influence of Covid-19 upon energy markets and related regulatory measures, April 28-29, 2020.
9.4 EUROPEAN WATER REGULATORS (WAREG) In 2020, the Energy Regulatory Commission, as full member has participated in the work of the European Water Regulators – WAREG, with headquarters in Milan, Italy. The European Regulators Association has commenced its activities in April 2014. Following meetings and coordination sessions among Regulatory Bodies initiators for the creation of this platform, in December 2017, WAREG was registered as an Association of the European Water Regulators and was granted capacity of a legal subject with headquarters in Milan, Italy. The Association with the Mission on cooperation of water regulatory bodies in Europe aims towards harmonization of differences in the National Framework on regulation and identification of requirements for mutual efforts in the resolution of common challenges, as well as the establishment of stable base in the regulation of water services in Europe. The Association of the European Water Regulators with the regulatory and observer member bodies, require realization of the targets listed below:
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- Exchange of mutual practices, information, joint analyses, and cross-reference of actual models for determination performances of Water Service Enterprises; - Organization of specialized training, technical assistance, and experience exchange; - Promotion of best practices, and stable regulation of the water sector on European level, and - Promotion of activities on cooperation with analysis on service sustainability, opportunities for respective infrastructure investments, standards on the service quality, and protection of consumers. During 2020, the Energy Regulatory Commission, as full member took part in three virtual meetings organized by the Association of the European Water Regulators, listed below: - First virtual meeting of WAREG (Regulatory Measures for the Covid-19 crisis). - 21. General Assembly of WAREG. - Round table with EU representatives.
9.5 EUROPEAN INTEGRATION The Energy Regulatory Commission significantly contributes to the fulfilment of undertaken obligations by the Republic of North Macedonia within the accession process with the European Union. In addition, the Energy Regulatory Commission has participated with an expose and a significant contribution on the 16th meeting of the Sub-Committee of Transport, Environment, Energy and Regional Development, held on March 17th, 2020 in the form of a virtual meeting. Pursuant to the Decision on Working Groups Establishment for the development of the National Program for adoption of the EU legislation, and the preparation of the negotiating positions for the negotiations for membership to the European Union (NPAA), the Energy Regulatory Commission shall take participation in the Working Group for Chapter 3.15 Energy and is preparing the part 3.15.2 of the Chapter referring to the field of Internal Energy Market. Within the work scope of the Work Group, regular meetings are held with the Secretariat for European Affairs and the Ministry of Economy, anticipating adoption of bylaws required in the field of energy markets, and updating of undertaken obligations on integration with the European Union. The Energy Regulatory Commission has developed quarterly and mid-term reports on undertaken activities to the Internal Energy Market, and within the renewable energy sources, and submitting the reports to the Secretariat of European Affairs required for regular reporting to the European Commission, as well as for the requirements of the Report on 2020 Progress of the Country Membership in the European Union.
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9.6 BALKAN ADVISORY FORUM (BAF) The Energy Regulatory Commission jointly with the Regulatory Bodies from Greece, (RAE), Bulgaria (EWRC), Serbia (AERS) and Montenegro (REGAGEN), in September 2018, in Thessaloniki, the Republic of Greece, have signed the Agreement for Establishing Permanent Balkan Advisory Forum of the Regulatory Bodies of the Balkan Countries (BAF). The goal of Balkan Advisory Forum (BAF) establishment is to provide closer cooperation, experience and knowledge exchange, and perspective on building mutual opinions and positions of all members regarding diverse regulatory issues in the domain of electricity, natural gas and water services. During 2020, two working meetings were held the Republic of Greece, where key points of discussion were the first reports developed within this association. At the end of September, in Thessaloniki, Republic of Greece, the Balkan Advisory forum Annual Meeting was held, where the Presidency was handed over to the Energy Regulatory Commission for a period of one year.
9.7 IMPLEMENTATION OF PROJECTS AND PARTICIPATION IN OTHER EVENTS Cooperation with NARUC During 2020, two regional projects were implemented with the participation of the employees of the Energy Regulatory Commission and with the technical support of NARUC (National Association of the Regulatory Utility Commission). The aim of the project Enhancing Market Performance by Understanding the Value Proposition on Market Coupling is better understanding of the aim, principles, and the benefits from the models on power flows and market simulation. Thus, regulatory authorities can estimate if the technical components are reasonable (entry data, suppositions, engineer principles) which are used during the implementation of studies on power flows. Also, regulatory authorities were introduced to certain influences upon the price in the wholesale market, displayed via technical tools. Within this project, two documents are prepared such as: Manual for regulators for using analyses of power flows during the planning of transmission systems and the Manual for regulators for using the tools for simulation of production during the performance of market analysis. The first workshop was held in the period from February 25th, to February 28th, 2020, in Vienna, while the other workshops and communication were organized online on April 24th, and August 12, 14 and 18. The aim of the project Improving Investment Planning Through the Implementation and Enforcement of Quality of Service Standards is to introduce the regulatory authorities with the methodologies that are used for determination of standards on the quality of services, as well as with the manner how the operators of the electricity distribution systems can direct investments adequately to these standards in order to acquire a more reliable
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electricity distribution network. This project was fully implemented online via two workshops in the period from June 15, 16, 22, 23 and 29, 2020, as well as December 7, 9, 14 and 16, 2020. Within the Project, special training was provided for the employees in the Energy Regulatory Commission and for the electricity distribution systems, Elektrodistribucija and ESM Energetika, which was held online on October 26, 27, 29 and 30, and November 2nd, 2020. The aim of these trainings was to introduce the employees, via presentations and discussions, with the best practices in EU countries and the USA which are related to quality standards in supply. At the same time, it was discussed about the authorizations and activities, which are implemented by the Energy Regulatory Commission and the Electricity Distribution System Operators when implementing the regulation on qualitative supply and proposals and measures on improving the regulatory frame. As a result, an Action Plan was prepared for implementing the activities and measures related to the qualitative electricity supply. The Action Plan lists legislative measures, regulatory frame and operating activities which shall be implemented by the operators of the electricity distribution systems. During 2020, the cooperation with NARUC continued successfully within the project on Energy Systems Cyber-Security with the participation of representatives of the Energy Regulatory Commission in online workshops within this project. The first Strategy on Cyber - Security in the Electricity Sector as well as the Rules on Cyber-Security in the electricity Sector, is expected to be adopted during 2021m after the adoption of the Changes in the Law on Energy by the Assembly of the Republic of North Macedonia. During 2020, the collaboration with NARUC has also successfully continued within the project of the upgrade of the web-platform on price comparison in the Macedonian retail electricity market https://www.swithc.mk/, and analysis of the possibilities on establishing new functions. In December 2020 the Energy Regulatory Commission was joined the project on improving social and cultural norms in the regulatory authorities regarding gender equality and promotion of women in leading positions, under the auspices of NARUC and USAID. The project is performed in two parallel phases, and the workshops are held monthly. The first phase is the training of the representatives of the Human Resources Sectors as well as reduction of legal and procedural barriers, and to build a legal frame and regulation on promotion of activities by women in the field of energy by implementing non-discriminatory regulations, providing continuous trainings on gender equality and promotion of the organization culture. The second phase provides training and mentorship of women from middle management from regulatory authorities, and to improve their necessary capacity (teamwork, managing a staff, public speaking etc.) in order to provide career promotion. One of the employees in the Energy Regulatory Commission has participated as part of the team on expert volunteers of NARUC in Partner Exchange regarding Monitoring of Secure Supply, for the needs of the Kenyan Regulator EPRA which was held in Nairobi, Kenya, from January 14th to January 16th, 2020.
An employee of the Energy Regulatory Commission was also a presenter in the webinar on: „The Role of the Regulator on Mitigating the Influence of Covid-19” held on April 21st. 2020 organized by NARUC. In 2020, along participation in events organized by the ECRB, CEER, ERRA, WAREG and BAF, representatives from the Energy Regulatory Commission took part in meetings, conferences and events, listed below: Annual Report on operations of the ERC in 2020 - 224 -
− In 2020, the Energy Regulatory Commission has continued implementing the project Know-How Exchange Program (KEP) “CEI – Central European Initiative Support for Strengthening Energy Regulatory Authorities in the Western Balkan” and took part in the workshop that was held in Sofia, Republic of Bulgaria on February 21st, 2020. The other four workshops were held online on May 7th, July 16th, September 30th, and December 16th, 2020. Along with the regulatory authorities, the workshops were attended by the electricity distribution system operators, the organized electricity market operators, and the nominated operators of the electricity markets in the region. The main goal is to determine institutional, legal, and regulatory limitations regarding the implementation of electricity market coupling in the region. − Meeting on regional feasibility study on improving efforts, prepared within the WBIF on May 28th, 2020. − A series of mutual webinars on the consequences of the Covid-19 pandemics upon the tariffs and finances of the energy companies, June 2020, organized by CEER with CAMPUT, ERRA and NARUC, − 17Th meeting of the working group for the consumers of MEDREG, October 19th, 2020, − First virtual meeting within the project of the World Bank on sustainable heating methods, held on November 13th, 2020, − Necessary changes for speeding electricity production from distributed producers USAID/USEA, December 8th, 2020.
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FINANCIAL OPERATIONS (ACTIVITIES)
2020
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X. FINANCIAL OPERATIONS
Pursuant to Article 35, paragraph 1, of the Law on Energy*, the Energy Regulatory Commission shall finance its operations by self-financed sources, provided by: − Collection of fees on issuing Licenses for Energy Activity Performance, i.e., entry in the Register of Foreign Traders and Suppliers of Electricity and Natural Gas granted to perform activity in the Republic of North Macedonia. − Fees from the procedure for establishing tariffs on Water Services, i.e., regulatory tariff on Water Services, and − Collection of annual fees on holders of Licenses for Energy Activity Performance and foreign associations that perform energy activity in the Republic of North Macedonia and − Special annual fee determined as a percentage of share from the total annual income of the Water Service Providers, achieved by providing water services. The fees are 0,0460 % of the overall annual revenue acquired by holders of Licenses for Energy Activity Performance, and of the annual revenue by the Water Service Providers under the water service provision, and in accordance with the Decision number 08-778/1, adopted on January 22nd, 2020 by the Assembly of the Republic of North Macedonia (“Official Gazette of the Republic of North Macedonia'’ no. 17/20).
10.1 FINANCIAL RESULTS FROM THE OPERATIONS (ACTIVITIES) The Energy Regulatory Commission maintains the accounting records in accordance with the Law on Accounting for Non-Profit Organizations, the Rulebook on Accounting Plans of the Non-Profit Organizations, the Rulebook on Non-profitable Organizations Accounting Plan and Balance Sheet (Financial Balance Sheet / Statement), and the Rulebook on Non- profitable Organizations Individual Accounts of the Accounting Plan. The recognition of the revenues and expenditures of non-profitable organizations is applied in accordance with the principle of modified incurred business changes, i.e., transactions. The principle of modified incurred business changes, i.e., transactions means that revenues and expenditures are recognized for the calculation period they occur according to the criterion of measurability and availability. The revenues are measurable when they are expressed in value. The revenues are available when they are achieved in the calculation period or within 30 days after the expiry of the calculation period if the revenues refer to the calculation period and serve to cover the obligations of that calculation period. The accounting principle of modified incurred business changes, i.e., transactions, means that expenditures are recognized in the calculation period during which they occurred or within 30 days after the expiry of the calculation period, of the obligation for paying occurred in that calculation period.
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10.1.1 REVENUES The overall collected revenues of the Energy Regulatory Commission for the period of 1. 1 – 31. 12. 2020 are in the amount of 80.381.989 MKD, whereas: ▪ 73.620.826 MKD or 91,59 % of overall revenues are acquired by the legally collected fee by the holders of licenses for energy activities performance; ▪ 3.015.448 MKD or 3,75 % of overall revenues are acquired by the legally collected fee by Water Service Providers; ▪ 2.036.286 MKD or 2,53 % are collected revenues from license issuance; ▪ 1.560.000 MKD or 1,94 % are collected revenues derived from procedures for the determination of tariffs on water services and ▪ 142.429 MKD or 0,19 % are collected revenues under other bases (based on the interest from regular operation, court decisions, currency exchange and so on.) Table 10.1 Review of achieved revenue of operation by the the Energy Regulatory Commission, for 2020
2020
Percentage of shares in No. REVENUES Collected overall (MKD) revenues (%) I. Overall revenues from operation (I.1. + I.2.) 80,381,989 100.00 Revenues of collected fees of license holders for energy activities performance, fees for issuing licenses, fees paid by Water Service Providers, fees for the procedure on water I.1. 80,232,560 99.81 tariff establishment ( I.1.1+ I.1.2 + I.1.3 + I.1.4)
Fees for the overall revenue by license I.1.1 holders for energy activities 73,620,826 91.59 performance
I.1.2 Fee for license issuance 2,036,286 2.53
I.1.3 Fees for Water Service Providers 3,015,448 3.75
Fees for the procedure on Water Service I.1.4 1,560,000 1.94 Tariffs Establishment Other Revenues (interest on regular I.2 operation, court decisions, currency 149,429 0.19 differences and so on) Chart 10.1 displays the structure of realized revenues in 2020 .
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Fees for the overall revenue by license holders for 2.036.286; performing energy activities 2,53% Fee for license issuance
3,015,448; 3,75% Fees from the total revenue of Water Service Providers
1,560,000; Fees for the procedure on Water Service 1,94% Tariffs Establishment
149.429; Other revenues 73.620.826; 0,19% 91,59%
Chart 10.1 Structure of achieved revenues in 2020 Pursuant to the Law on Energy* and the Rulebook on Calculation Plan and the Balances of Non-profitable Organizations, the surplus of revenues is transferable to the upcoming year. The achieved surplus of revenues in 2020 in the amount of 14.966.085 MKD and the accumulated surplus of revenues from previous years, in the amount of 86.534.477 MKD, is designated for solving the problem of lack of business premises, i.e., its purchase.
10.1.2 EXPENDITURES For realizing the competencies of the Law on Energy* and the Law on the Determination of Prices for Water Services, in 2020, the Energy Regulatory Commission has realized expenditures at the amount of 65.415.904 MKD. The achieved expenditures are by 31,40 % lower than the planned (Table 10.2), because of the changed manner of operation and objective impossibility for realizing certain activities, caused by Covid-19 pandemics. Table 10.2 Review of planned and achieved expenditures deriving by the operation of the Energy Regulatory Commission for 2020
2020 Approved Achieved/ No. EXPENDITURES Achieved (MKD) with the plan planned (MKD) (%) TANGIBLE EXPENDITURES, SERVICES I.1 14,902,200 10,820,239 72.60 AND DEPRECIATION. 1. Tangibles 507,500 523,196 103.1 2. Electricity costs 1,578,800 967,746 61.30 3. Other services 4,302,900 2,652,393 61.64 4. Transportation services 4,600,000 4,271,661 92.86 5. Representation costs 1,500,000 1,188,960 79.26 6. Lease 848,000 620,482 73.17
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2020 Approved Achieved/ No. EXPENDITURES Achieved (MKD) with the plan planned (MKD) (%) 7. Other tangible expenditures 1,565,000 595,801 38.07 I.2 OTHER EXPENDITURES 15,553,750 6,699,241 43.07 8. Transaction provisions 110,000 58,968 53.60 9. Insurance expenses 200,000 134,004 67.00 Business trips per diem 10. 4,350,000 739,317 17.00 in the country and abroad Expenses incurred by 11. 1,320,000 1,045,794 79.22 Workers and citizens 12. Memberships 800,000 625,446 78.18 13. Intellectual and other services 8,573,750 4,068,958 47.46 14. Other unforeseen expenditures 200,000 26,754 13.37 I.3 CAPITAL AND OTHER ASSETS 3,620,000 2,116,324 58.46 15 Construction material assets / / / Assets for Accounting equipment, 16. 2,420,000 1,771,807 73.21 software and software licenses 17. Purchase of vehicles / / / 18. Purchase of furniture 1,000,000 110,110 11.01 19. Purchase of other equipment 200,000 234,407 117.20 SALARIES AND CONTRIBUTIONS OF I.4 51,884,512 45,780,100 88.23 SALARIES OVERALL EXPENDITURES II. 85,960,462 65,415,904 76.01 (I.1+ I.2+ I.3+ I.4)
The purpose of exploitation of assets following respective expenditures categories is listed below: − The category of tangibles refers to office consumables, cleaning and maintenance consumables, other tangibles and assets on consumables and auto- tires procurement; − The category of energy expenses refers to electricity and fuel costs; − The category of other services refers to expenses on investment maintenance of main and transportation assets, announcements, copy services, printing services, communal hygiene services, software archive and accounting service costs, etc.; − The category transportation – communication services refer to expenses on telephone services, post-mailing services, Internet, and subscription to Platts, − Representation costs and buffet; − The category of expenses on leases refer to incurred costs on rent of apartment for a member to the Energy Regulatory Commission, costs for rent of equipment.
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− The category of expenses of other tangibles expenditures refer to court fees, professional literature costs, seminars, registration of vehicles, cooperation with regional authorities, etc.; − The category of expenses on insurance refers to costs on insurance of administration building, elementary and transportation costs, and travel insurance of employees; − The category of per diem expenses refer to per diem costs for business trips in the country and abroad, transportation costs, accommodation, parking and toll fees, visa costs, etc. − The category of expenses on employment refer to costs incurred on repayment of regress on employment, mandatory health check, jubilee award and other compensation in accordance with the Collective Employment Agreement of the energy Regulatory Commission; − The category of expenses on membership fees refer to costs on membership to ERRA, CEER and MAKO CIGRE, − The category of expenses on intellectual and other services incurred by costs on lawyer and notary services, contract fees, expertise, adaptive maintenance of the webpage, and other intellectual services; − The category of other expenses refers to costs based on currency differences, tax on other expenditures, etc.; − The category of capital and other assets refers to costs on procurement of equipment for automatic processing of data, office furniture, licenses and other equipment required for operation of the Energy Regulatory Commission, and − The category of expenses on salaries and salaries contributions referring to costs incurred for salaries and contributions for 30 employees in the Energy Regulatory Commission.
Appendices 12.6 and 12.7 review the Balance Statement of Revenues and Expenditures for the period from 01. 01. 2020 - 31. 12. 2020, and the Balance Sheet Statement of 31. 12. 2020.
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ACTIVITIES IN 2021
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X I . А C T I V I T I E S I N 202 1
In 2021, the Energy Regulatory Commission continues operations in full capacity using the new IT – tools in executing its legal competencies, with a special attention to successful bridging of challenges caused by COVID-19, which has affected operations of the energy companies, and to provide protection of consumers in times of exceptional circumstances. The Energy Regulatory Commission, in the part related to the electricity, shall continue to monitor the liberalization of the Electricity Market in the Republic of North Macedonia, foremost in the protection of consumers in accomplishing their rights to electricity supply, and the right to quality and permanent delivery of electricity through the Electricity Transmission and Electricity Distribution Network (Grid). In this direction, it shall focus on determining the necessary data for preparing energy quality indicators and their adequate definition. To implement these activities, adequate change of Grid Rules for Electricity Distribution and of the Rulebook on Monitoring Electricity Market Functioning shall be made. In 2021, new Grid Rules on Electricity Transmission shall be approved, transponding Network Connection Codes, which are presented as Regulations of the European Union. Depending on the dynamics for adopting the Law on Amendments of the Law on Energy, the Energy Regulatory Commission shall work on rules and criteria on the derogation from the application of Grid Rules of Electricity Transmission in accordance with the Grid Rules on EU accession. In 2021 the Energy regulatory Commission shall work in the regulatory issues related to the establishment of the organized electricity market and possible coupling of day-ahead electricity markets between North Macedonia and Bulgaria. In 2021, basic revenue for performing the energy activities of electricity transmission and electricity distribution, shall be determined for each year of the regulated three-year period (2201-2023), hence adequate analyses related to justified operating costs, depreciation and return on equity shall be performed. After adopting the changes in the Law on Energy, which are under the procedure of preparation, in 2021, the Energy Regulatory Commission shall operate o adopting an adequate by-law regulation, and on other practical aspects for initiating the implementation of the Regulation 1227/2011 for integrity and transparency of wholesale electricity markets. The focus in the field of the natural gas, during 2021, is the certification of the natural gas transmission operator, continuing the activities in the preparation on introducing capacities designed for natural gas transmission, and by introducing the “Entry- Exit” Concept, and the approval of the bylaw Regulation by the Natural Gas Distributors.
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In the field of the District heating, the Grid / Network Rules on District heating Distribution shall be approved to ESM Podruznica Energetika, and the changes of the Grid Rules of Distribution of heat BE DOOEL Skopje. District heating market conditions shall continue to be monitored and if necessary, certain changes shall be made in the Supply Rules and in the Tariff System of District Heating Sale. In 2021 the Energy Regulatory Commission shall continue to implement the activities that are in accordance with the provisions of the Law on Water Services Price Determination. The key activities in 2021 shall be directed to monitoring of the prices application in the Water Services, and the compliance of the tariff application in the Water Services by implementing business-plans developed by the Water Service Providers, adopted for the first regulated period, as well as establishing tariffs on the Water Services for the second regulated period 2022 – 2024, designed for the Water Service Providers on territories with over 10.000 (equivalent) residents. Additionally, the Energy Regulatory Commission shall continue activities on other foreseen bylaw acts to be adopted, or approved, in deadlines prescribed by the Law on Energy*, as well as to implement all legal competencies, related to: - Providing competitive, stable and sustainable Energy Markets in the Republic of North Macedonia, their inclusion into Regional and International Energy Markets in cooperation with institutions from the Energy Community, and especially with the Energy Community Regulatory Board, and Regulatory Authorities of other contracting parties and participants in the Energy Community; - Effective opening of markets to all consumers and suppliers in the Energy Community; - Elimination of limits in the electricity and natural gas trade, including respective cross-border transmission capacities to cover demands, and facilitating the flow of electricity and natural gas within the Energy Community; - Development of safe, reliable and competitive energy systems oriented towards consumers, based on cost-effective principle; - Optimizing the use of electricity and natural gas of companies for electricity, natural gas and district heating in the course of improving the energy efficiency through providing energy management services, introduction of state-of-art metering systems, as well as smart grids; - Alleviation of access to new participants in the Energy Markets, and to energy produced from renewable energy sources; - Respective short-term and long-term alleviation to operators and users of systems for transmission and distribution in the course of increasing the efficiency of systems, and accelerating the market integration;
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- Consumer protection, and reinforcing effective competition enabling benefits to consumers by efficient and competitive functioning of the Energy Markets in the country, and - Reaching high standards in accomplishing the obligation deriving from the public and / or Universal Service in the supply of electricity, natural gas, and district heating, and contributing to the protection of vulnerable category of consumers.
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X I I . A P P E N D I X E S
Appendix 12.1 Electricity production by domestic producers from 2010 to 2020
Years 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 GWh 6,744.2 6,287.9 5,806.6 5,676.4 4,982.3 5,271.5 5,302.7 5,229.0 5,287.5 5,655.5 5,128.3 AD ESM (former AD ELEM) 6,476.5 6,050.2 5,370.1 5,113.0 4,535.0 4,741.8 4,299.9 4,080.1 4,114.3 4,283.7 3,642.8
Generation by TEC 4,277.4 4,775.7 4,475.7 3,742.6 3,506.4 3,092.7 2,699.1 3,145.1 2,613.0 3,293.8 2,509.8 TE Bitola 3,699.9 4,188.9 3,971.0 3,572.6 3,316.8 2,986.2 2,672.3 3,076.1 2,545.3 3,200.9 2,415.1 TE Oslomej 577.5 586.8 504.7 170.0 189.6 106.5 26.8 69.0 67.7 92.9 94.7 Generation by HEC 2,184.8 1,267.9 887.5 1,362.5 958.2 1,528.3 1,490.1 816.1 1,391.1 879.5 965.3 HEC Mavrovo 800.0 560.1 263.2 287.0 398.0 438.9 553.2 393.3 433.5 418.0 386.7 HEC Spilje 516.7 257.4 239.7 393.3 190.3 303.7 353.2 157.5 366.7 172.6 204.6 HEC Tikves 326.3 145.5 104.8 211.0 116.1 312.8 145.2 63.1 138.1 67.5 98.6 HEC Globocica 291.0 167.6 169.8 247.6 136.2 225.5 232.6 96.9 229.3 112.7 137.7 HEC Kozjak 250.9 137.4 97.8 184.0 80.4 171.6 142.8 71.0 156.7 73.1 95.8 HEC Sveta Petka 12.2 39.6 37.2 75.8 63.1 34.3 66.8 35.5 41.9 VEC Bogdanci 0.0 0.0 70.4 120.8 109.5 110.5 97.3 101.8 116.9 TE-TO Podruznica Energetika 14.2 6.7 6.8 7.9 0.0 0.0 1.2 8.4 12.9 8.6 8
TE-TO AD 0.0 74.4 280.1 340.8 189.8 177.8 550.1 794.7 716.6 987.0 1067.8 Kogel Sever 0.0 2.9 2.2 4.3 1.2 0.7 3.7 7.0 0.0 0.0 42.8 MHE 241.6 159.2 151.2 209.6 241.9 308.4 389.3 271.8 379.2 304.0 322.05 FEC 26.2 1.1 3.1 8.7 14.3 22.6 23.7 23.9 23.3 25.6 37.3 Biogas Thermal Power Plants 0.0 0.0 0.0 20.2 36.0 51.6 54.1 55.1 57.3
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Appendix 12.2 Paid assets for produced electricity by preferential producers in 2020 (MKD without VAT)
Produced Total No. Installed electricity in Name of the Power Plant (MKD capacity kW 2020 (kWh) without VAT) 1 MHE OHRID 1 117.00 122,335 905,622 2 MHE OHRID 2 320.00 843,831 5,915,311 3 MHE OHRID 3 229.00 470,150 3,427,129 4 MHE BELICA 1 995.00 3,289,146 16,744,338 5 MHE BELICA 2 996.00 3,005,368 15,619,669 6 MHE DABNISTE 32.00 64,159 474,968 7 HIDROENERGO PROEKT BITOLA 400.00 1,621,665 10,491,864 8 STUDENCHICA 600.00 2,733,662 15,133,603 9 MHE KRKLJANSKA REKA 384.00 622,929 4,360,195 10 MHE SLATINO 560.00 1,257,530 7,308,255 11 MHE BRBUSNICA 576.00 838,102 5,417,098 12 MHE KRANSKA REKA 584.00 1,728,251 9,463,939 13 MHE KRIVA REKA 2 584.00 1,503,536 9,290,118 14 MHE BRAJCHINO 1 704.00 1,896,184 10,125,938 15 MHE KAMENICHKA REKA 1,200.00 2,861,752 14,838,742 16 MHE LJUBANSKA 234.00 429,646 2,987,826 17 MHE PESOCHAN ref. no. 393 990.00 3,067,887 15,351,480 18 MHE SELECHKA REKA 1,720.00 3,659,237 16,497,264 19 MHE ZELEN GRAD 130.00 47,059 348,386 20 MHE BRESTJANSKA 666.00 1,918,096 10,501,006 21 MHE RATEVO 400.00 474,076 3,496,232 22 MHE MINI TURIJA 160.00 509,804 3,774,101 23 MHEC 350 GRADECHKA 920.00 2,020,006 10,831,827 24 MHE TRESONCHE ref. no. 11 1,980.00 3,751,961 17,442,601 25 MHE PESOCHAN ref. no. 392 1,125.00 3,420,867 16,627,540 26 MHE GOLEMACHA ref. no. 259 423.00 1,474,593 9,024,550 27 MHE MALA REKA ref. no. 258 270.00 596,374 4,092,944 28 MHE DOBRENOEC 480.00 2,168,867 11,397,922 29 MHE BISTRICA - 97 2,640.00 6,556,062 27,171,449 30 MHE BISTRICA - 98 3,200.00 6,878,262 27,845,354 31 MHE BRAJCHINO - 2 1,472.50 2,970,492 14,025,772 32 MHE GALICHKA REKA 3 1,282.50 1,400,592 7,440,151 33 HEC 372 ESTEREC ref. no. 372 376.00 423,305 3,008,183 34 MHE BISTRICA 99 3,280.00 7,099,362 28,703,621 35 MHEC EKSPLOATACIONEN MINIMUM 320.00 990,216 6,489,517 36 MHEC BRZA VODA 3 720.00 776,644 4,951,550 37 MHEC TOPLEC 332.00 981,187 7,147,883 38 MHEC BRZA VODA 2 960.00 948,542 5,652,570 39 MHEC BRZA VODA 1 960.00 598,518 3,888,081 40 MHE PATISKA REKA 712.50 2,019,464 11,252,530
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41 MHEC GOLEMO ILINO 464.00 1,283,224 7,772,954 42 MHE BACHISKA REKA 2 1,170.00 3,135,201 15,260,564 43 MHEC KUSNICA 247.50 682,851 4,529,464 44 MHEC KAMENA REKA 125 2,400.00 4,741,712 21,010,122 45 HEC 236 KONJARKA 1,000.00 3,348,436 17,016,259 46 MHE KRIVA REKA 1 540.00 1,649,843 10,050,026 47 MHE KRIVA REKA I TORANICA 990.00 3,178,257 16,150,899 48 MHE BOSAVA 1 2,800.00 6,035,036 25,161,951 49 MHE BOSAVA 2 2,800.00 5,868,656 24,331,112 50 MHE BOSAVA 3 1,920.00 4,070,380 18,022,436 51 MHE BOSAVA 4 1,920.00 4,319,540 18,800,291 52 MHE BOSAVA 5 1,440.00 139,428 897,910 53 MHE KALIN KAMEN 1 248.00 916,304 6,568,885 54 MHE KALIN KAMEN 2 320.00 1,112,224 7,731,666 55 MHEC STANECHKA REKA 2 136.00 951,637 7,037,407 56 MHEC KAZANI ref. no. 208 1,064.00 2,992,540 14,138,972 57 MHEC VEJACHKA REKA ref. no. 93 1,306.40 2,415,210 13,130,996 58 MHEC JABLANICA ref. no. 399 3,280.00 7,230,585 29,171,553 59 MHEC ESTERICHKA ref. no. 373 567.00 0 0 60 MHE KLEPALSKA ref. no. 322 252.00 527,381 3,640,896 61 MHE KLEPALSKA ref. no. 321 172.00 397,306 2,910,908 62 MHE BANJANI ref. no. 116 132.00 227,386 1,683,315 63 MHEC Konjarka ref. no. 235 1,000.00 2,598,508 14,070,403 64 MHEC BREGALNICA ref. no. 329 684.00 1,282,958 7,490,664 65 MHEC DUPNICA 990.00 1,129,088 6,732,070 66 MHEC BELICHKA ref. no. 52 765.00 1,090,050 6,482,758 67 MHEC BREGALNICA ref. no. 325 351.00 1,712,977 10,084,629 68 MHEC LJUTACHKA ref. no. 326 918.00 570,844 4,121,401 69 MHEC BACHISKA REKA 1 ref. no. 27 1,440.00 3,643,864 16,709,485 70 MHEC SEMNICA 800.00 2,217,370 11,179,965 71 MHEC BOSAVICA 981.00 1,942,112 10,791,345 72 MHEC STANECHKA REKA 1 84.00 539,135 3,991,254 73 MHEC Banjanska ref. no. 115 293.00 578,575 3,930,756 74 MHEC MAVROVO 1 - BELICHICA 80.00 194,569 1,440,363 75 MHEC MAVROVO 2 - KAKACH 124.00 117,932 873,042 76 MHEC VRANOVSKA ref. no. 312 792.00 1,771,582 9,585,045 77 MHEC TIKVES 2 2,240.00 9,001,080 32,244,841 78 MHE RECHICA I GRMESNICA no. 378 720.00 1,495,008 8,210,172 79 MHEC KONSKA ref. no. 184 990.00 2,026,656 10,641,598 80 MHEC PADALISKA ref. no. 14 480.00 600,145 3,887,285 81 MHEC Gabrovska Reka ref. no. 103 1,800.00 6,204,452 26,097,826 82 MHE - Lukar 1 250.00 981,217 7,263,718 83 MHE - Lukar 2 250.00 1,428,096 9,565,204 84 MHE - Lukar 3 250.00 1,494,574 9,893,275 85 MHE - Lukar 4 600.00 2,926,724 15,867,365 86 MHEC Ordanska Reka ref. no. 105 360.00 979,245 6,852,381
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87 MHEC Ordanska Reka ref. no. 106 306.00 815,693 5,830,861 88 HEC Filternica 408.00 1,087,828 6,514,966 89 HEC Dovledzik 472.00 328,174 2,191,040 90 MHE TOPOLKI 317 1,997.50 4,661,260 20,652,069 91 MHEC KOVACHKA with ref. no. 21 504.00 660,182 4,351,062 92 MHEC KOVACHKA with ref. no. 22 504.00 807,388 5,145,848 93 MHEC KOVACHKA with ref. no. 23 990.00 1,503,034 8,194,895 94 MHE TOPOLKI 316 2,880.00 5,509,364 21,732,844 95 MHEC KRAPSKA with ref. No.45 693.00 406,985 2,604,842 96 MHE TOPOLKA 315 2,160.00 317,552 1,650,193 I. Total small Hydro Power Plants 87,359.90 195,887,077.00 981,361,180 97 SIETO 10.20 15,743 446,765 98 GEO-LINK 49.72 59,441 1,393,496 99 PETRO M 49.72 52,652 1,234,343 100 MAVIS 250.00 354,614 8,969,653 101 ALFA INZINERING 49.73 66,865 1,897,543 102 INTEGRAL 49.90 46,278 856,509 103 MEGA SOLAR 996.70 1,474,906 37,306,369 104 FOTON BOSILOVO 11.50 8,715 247,320 105 TEKOMA 777.00 1,010,605 16,210,277 106 GEO SOLAR 1 49.92 72,559 1,342,900 107 EVR 92 KOCHANI 49.77 62,563 1,157,909 108 ENSOL 299.88 433,772 6,957,719 109 CHELSI SOLAR 1 49.92 66,898 1,238,127 110 CHELSI SOLAR 2 49.92 69,740 1,290,723 111 KARADZINEC 1 49.68 66,754 1,235,472 112 TORPEDO SOLAR IT 993.60 1,551,738 24,890,016 113 SOLAR INVEST 1 41.76 57,940 1,072,352 114 LAGOVO 999.12 1,488,740 23,879,569 115 ENERGO VEVCHANI 400.00 500,283 8,024,622 116 AB SOLAR 1 439.58 597,426 9,582,778 117 AB SOLAR 2 705.00 962,038 15,431,175 118 HRIST SOLAR 49.44 60,962 1,128,290 119 SOKOLARCI - HEI 49.92 65,234 1,207,338 120 FVC FOTOSOLARIS MIT 49.68 71,627 1,325,649 121 SKOLARCI - ELPROMTREJD 49.92 61,693 1,141,798 122 GEO SOLAR 2 54.72 76,105 563,414 123 GEO SOLAR 3 54.72 76,778 568,394 124 SVEMEK 299.25 264,540 4,243,319 125 TOP SOLAR 49.98 63,046 1,166,852 126 TOTAL SOLAR 49.98 64,890 1,200,981 127 SOLARSANS KM1 49.68 62,586 463,333 128 SOLARSANS KM2 49.68 62,234 460,727 129 AGROSTRISOVCI 39.96 34,498 638,485 130 FVC BEL KAMEN 9.80 12,260 226,907 131 KARADZINEC 2 49.68 67,908 1,256,830
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132 FEC DUBROVO 949.90 1,310,872 21,026,685 133 EVR 92 KOCHANI 1 49.50 53,724 397,727 134 EVR 92 KOCHANI 2 49.50 51,622 382,165 135 MORANE 49.68 50,189 928,891 136 SONCHEVA EL. CEN. 1745/1 49.50 68,434 506,628 137 SONCHEVA EL. CEN. 1745/2 49.50 67,921 502,830 138 SONCHEVA EL. CEN. 1745/3 49.50 72,673 538,007 139 SONCHEVA EL. CEN. 1782 124.50 167,646 1,241,104 140 SONCHEVA EL. CEN. 1745/7 49.50 70,636 522,929 141 SONCHEVA EL. CEN. 1745/8 49.50 68,361 506,086 142 ESI SOLAR 999.22 1,480,689 10,961,719 143 EURO SOLAR 999.22 1,456,758 10,784,559 144 SONCHEV PARK KADINO -2 33.50 52,123 964,684 145 DA-MA 49.75 72,065 533,508 146 DA-MA 2 49.75 74,243 549,631 147 DA-MA 3 49.75 74,841 554,058 148 KIRA 49.75 73,893 547,041 149 KIRA-2 49.75 75,374 558,004 150 ARESE 1 49.75 73,686 545,509 151 DN SOLAR 49.75 73,025 540,614 152 GENCHEV 49.75 68,685 508,486 153 FILTEKO SOLAR 49.75 71,677 530,637 154 MV SOLAR DONCHEVI 49.75 66,903 495,295 155 MV 99.50 111,825 827,858 156 FVEC 45 KW 45.00 59,339 1,098,237 157 FVEC PREMIUM SOLAR 49.68 66,755 658,928 158 PETROV SOLAR 49.68 76,751 568,199 159 RALEV SOLAR 49.68 76,662 567,540 160 VEVCHANI-2 49.75 70,384 694,746 161 FOTON-1 49.75 65,185 482,573 162 FOTON-2 49.75 66,078 489,185 163 FOTON-3 49.75 59,097 437,500 164 FOTON-4 49.75 67,038 496,293 165 FOTON-5 49.75 66,473 492,110 166 FOTON-6 49.75 66,890 495,197 167 FOTON-7 49.75 65,325 483,613 168 FOTON-8 49.75 60,324 446,586 169 DE-KA ENERGIJA 49.75 74,229 549,529 170 KALOJANI GP 1.1 49.64 70,188 519,611 171 KALOJANI GP 1.2 49.64 70,841 524,442 172 KALOJANI GP 1.3 49.64 72,454 536,384 173 KALOJANI GP 1.4 49.64 72,772 538,739 174 KALOJANI GP 1.5 49.64 71,932 532,522 175 KALOJANI GP 1.6 49.64 71,471 529,108 176 KALOJANI GP 1.7 49.64 70,939 525,169 177 KALOJANI GP 1.8 49.64 70,667 523,158
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178 LAZARO 49.75 74,215 549,424 179 JAKO SOLAR 49.75 70,800 524,145 180 ENERGO -SDL EH1 49.75 70,525 522,107 181 ENERGO -SDL EH2 49.75 71,191 527,037 182 ENERGO -SDL 49.75 70,133 519,205 183 ENERGOPOWER -N E1 49.75 69,531 514,749 184 ENERGOPOWER -N E2 49.75 70,229 519,917 185 ENERGOPOWER -N 49.75 63,241 468,183 186 SOLARNI MAKEDONSKI SISTEMI 926.10 1,360,599 10,072,647 187 SOLAR ENERDZI SISTEMSI 962.36 1,428,588 10,575,972 188 MAL - INZENERING 45.25 63,553 627,323 189 DINO DINAMIKS 44.00 49,437 487,988 190 FOCKO 49.50 65,133 642,917 191 SOLAR PARK LISOLAJ 997.15 1,458,703 10,798,958 192 METALOSOLAR 49.92 69,025 681,336 193 FEC FOTOVOLT BELCHISTA 47.25 70,231 693,236 194 NINE SOLAR 107.10 149,488 1,106,678 195 TENOVO 2 177.50 265,391 1,964,713 196 TENOVO 3 196.00 281,366 2,082,977 197 TENOVO 4 196.00 279,213 2,067,044 198 TAN SOLAR 49.92 50,917 502,595 II. Total of Photovoltaic Power Plants 16,713.25 23,535,799 294,351,129 199 GASNA ELEKTRO CENTRALA ELEKTRO SHARRI 999.00 8,482,672 94,195,935 200 LOGOVARDI 3,000.00 24,954,528 277,107,949 201 PORODIN 3,000.00 23,859,900 264,953,260 III. Total Biogas Thermal Power 6,999.00 57,297,100 636,257,144 plants 202 PARK NA VETERNI ELEKTRANI BOGDANCI 36,800.00 116,883,810 641,745,336 203 BINERGIJA 600.00 0 0 TOTAL 148,472.15 393,603,786 2,554,473,932
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Appendix 12.3 Amount of tariffs for calculation elements for electricity distribution by Elektrodistribucija
Connection Capacity Active Reactive Year category (MKD/k electricity electricity W) (MKD/kWh) (MKD/kVAr ) MV1 95.5 0.2687 0.009 MV2 128.28 0.3205 0.0297 2015 LV1.2 184.38 0.3741 0.0512 LV1.1 0.9445 * LV2 2.2608 * MV1 95.5 0.2518 0.0081 MV2 128.28 0.2988 0.0269 2016 LV1.2 184.38 0.3474 0.0464 LV1.1 0.9288 LV2 2.055 MV1 76.48 0.2362 0.0077 MV2 146.83 0.2807 0.0255 2017 LV1.2 220.58 0.3269 0.044 LV1.1 0.9848 * LV2 1.8913 * MV1 74.86 0.2298 0.0098 MV2 151.8 0.2865 0.0325 2018 LV1.2 217.98 0.3452 0.0559 LV1.1 1.1162 * LV2 1.8864 * MV1 82.32 0.2199 0.0177 MV2 155.41 0.3045 0.0515 2019 LV1.2 246.19 0.3811 0.0821 LV1.1 1.2137 * LV2 1.9808 * MV1 103.04 0.0388 0.0155 MV2 197.24 0.1100 0.0440 LV1.2 296.48 0.1789 0.0716 2020 LV1.1 1.1199 * LV2 1.7982 *
Appendix 12.4 Amount of tariffs for calculation elements for electricity distribution AD ESM Skopje
Connection Capacity Active Reactive Year category (MKD/k electricity electricity W) (MKD/kWh) (MKD/kVA r) High voltage 36.5073 0.2409 0.0964 2015 Middle voltage 129.8198 0.2905 0.1162 Low voltage * 1.6222 0.6489 High voltage 32.7677 0.2353 0.0941 2016 Middle voltage 128.3011 0.2854 0.1142 Annual Report on operations of the ERC in 2020 - 242 -
Low voltage * 1.6312 0.6525 2017 High voltage 36.3695 0.2417 0.0967
Middle voltage 126.9484 0.2904 0.1162 Low voltage * 1.552 0.6208 High voltage 19.0951 0.2115 0.0846 2018 Middle voltage 88.746 0.2468 0.0987 Low voltage * 1.2918 0.5167 High voltage 16.0202 0.1798 0.0719 2019 Middle voltage 79.5747 0.2029 0.0812 Low voltage * 1.1385 0.4554 High voltage 13.6190 0.0096 0.0038 Middle voltage 72.3781 0.0344 0.0138 2020 Low voltage * 0.9267 0.3707
Appendix 12.5 Amount of tariffs for calculation elements for electricity transmission
Tariffs on calculation 2015 2016 2017 2018 2019 2020 elements Peak active power 11.65 7.51 13.25 3.1964 2.794 9.5589 Active electricity 0.2233 0.2174 0.1915 0.1994 0.1704 0.1757 Reactive electricity 0.0893 0.087 0.0766 0.0798 0.0682 0.0703
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Appendix 12.6 Balance of ERC's revenues and expenditures in 2020
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Appendix 12.7 Balance sheet of ERC in 2020
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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
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