REPUBLIC OF ALBANIA ENERGY REGULATOR AUTHORITY ANNUAL REPORT Power Sector Situation and ERE Activity during 2015 Tirana, 2016 Annual Report 2015 March 2016 ERE CONTENT I. Introductory Speech ........................................................................................................................ 9 Petrit Ahmeti......................................................................................................................................... 14 Introduction ............................................................................................................................................. 15 ERE Organizational Structure... .......................................................................................................... 15 ERE Board … ........................................................................................................................................ 15 ERE Organisation chart ...................................................................................................................... 17 1. Part I: Electricity Market Regulation ……………………....................................................................... 18 1.1 Electricity Market ………............................................................................................................. 19 1.2 Electricity Generation ……… ..................................................................................................... 22 1.2.1 Electricity Capacities and Generation …………… .................................................................... 22 1.2.2 Realization of generation indicators and hydro reserve management . ............................... 36 1.2.3 Vlora TPP Situation ……........................................................................................................ 37 1.2.4 Electricity Generation from Private/Concessionary HPP-s ……… ........................................... 38 1.2.5 Electricity Generation Efficiency ……………….......................................................................... 42 1.3 Electricity Transmission ………… ............................................................................................... 44 1.3.1 TSO Activity ………................................................................................................................. 44 1.3.2 Assets and the Development of the Transmission System ................................................... 45 1.3.3 Electricity Balance transmitted from TSO company ……...................................................... 49 1.4 General Situation of the Electricity System referring to Article 25, Law 43/2015 “On Power Sector ”………………................................................................................................... 49 1.5 Proposed additional generating capacity (planned or in construction capacity) .................... 58 Scenarios of Joint Grid Models ..................................................................................................... 59 1.5.3 On the objectives of continuous development in national, regional and European level ……....... 62 1.6 Electricity Distribution System Operator ……………….. .................................................... 67 1.7 Electricity Consumption ……...................................................................................................... 71 1.7.1 Electricity Consumption Structure ……………......................................................................... 74 1.7.2 Electricity Consumption Profile …………................................................................................ 75 1.8 Electricity Purchase in the unregulated market …....................................................................... 77 1.9 Electricity Sale Efficiency ……………….. ................................................................................. 78 1.10 Licensing and Monitoring the Activities in the Electricity Market ………........................ 84 1.10.1 Licenses and the Requirements treated during 2015 ......................................................... 84 1.10.2 Licenses in electricity generation activity ……………………….............................................. 85 Adresa:Rruga “Gjergj Fishta”10, Tiranë2 /189; Tel/Fax : +355 42 22 963; Tel : +355 42 69 590 E-mail: [email protected] -2- Annual report 2015 March 2016 ERE 1.10.3 Licenses in electricity trading activity ……………………………................................................ 87 1.10.4 Licenses in electricity supply activity ………………………………................................................ 88 1.11 Monitoring Electricity Market Activities ………………… ................................................. 90 1.11.1 Electricity Market Monitoring ……….……... ........................................................................ 90 1.11.2 OSHEE company Monitoring ........................................................................................... 92 1.11.3 TSO company Monitoring................................................................................................. 95 1.11.4 KESH company Monitoring .............................................................................................. 102 2. PART II: Natural Gas Sector Regulation ………............................................................................. 104 2.1 Trans Adriatic Pipeline Project ……… .................................................................................... 105 2.2 Up to date progress of TAP-AG project .............................................................................. 106 2.2.1 Exemption Decision of TAP-AG …….................................................................................... 107 2.2.2 Planned Commercial Operation Date for TAP project ....................................................... 109 2.2.4 Prolongation of the Exemption Period ................................................................................ 111 2.3 Other developments about TAP project ................................................................................... 111 2.3.1 Decisions taken for the project ………………......................................................................... 111 2.3.2 Decisions taken during 2015 for natural gas ………............................................................ 112 2.3.3 Natural Gas Tariff Methodology for TAP AG ………………..................................................... 113 2.3.4 The main issues to be solved in the Natural Gas sector……………………............................. 114 3. PART III: Energy Regulator Authority Activity …….......................................................................... 116 3.1 Electricity Tariffs and Prices …................................................................................................... 117 3.1.1 Letting into force for January 1 2016 – June 30 2016 period of the existing tariffs and the retail electricity prices …………………………….................................................................................. 117 3.1.2 Electricity sale price from electricity of electricity generators from the hydro power plants with installed capacity up to 15 MW……………………................................................................... 120 3.1.3 Electricity Prices in the Region Countries for 2015 …………………….................................... 126 3.2 ERE Activity in Developing the Secondary Legislation, other Legal amendments occurred during 2015 and the legal processes followed by ERE ………………..................................... 128 3.3 Legal Processes where ERE has been a party during 2016…….. .......................................... 130 3.3.1 ERE as a third party ……………….. .......................................................................................... 130 3.3.2 ERE as a defendant party .................................................................................................... 131 3.4 ERE activity in Customer Protection ……………………. ................................................. 133 3.4.1 Complaints for “Unmeasured Electricy“.............................................................................. 135 3.4.2 Complaints for “bad invoicing “of electricity ...................................................................136 3.4.3 Complaints for electricity over-invoicing ......................................................................... 136 3.4.4 Complaints for “flat-rate invoicing“................................................................................... 137 Adresa:Rruga “Gjergj Fishta”10, Tiranë3 /189; Tel/Fax : +355 42 22 963; Tel : +355 42 69 590 E-mail: [email protected] -3- Annual Report 2015 ERE March 2016 3.4.5 Complaints for “a change on electricity price tariff”……………………….............................. 137 3.4.6 Complaints for electricity “interruption“……….. .............................................................. 138 3.4.7 Complaints for electricity “metering calibration” ………………............................................ 139 3.4.8 Electricity invoice for “metering out of technical conditions”…….................................. 139 3.4.9 Complaints on “fictitious contracts“and “fictitious invoicing“............................................ 139 3.4.10 Complaints for “new connection of electricity contract”............................................... 140 3.4.11 Complaints on “payment non-crediting “of electricity invoices. ……………….................. 140 3.4.12 Handling the complaints from the Ombudsman Office, the Prime ministry, Ministry of Energy and Industry and the