Regulatorni odbor Energetske zajednice

Pregled glavnih kriterijuma za određivanje dozvoljenog

prihoda
za prenos, distribuciju i regulisano snabdijevanje elektrčnom energijom i
gasom

decembar 2014.g.

1
 Sadržaj
REZIME .. 5
UVOD 6
Energetska zajednica 6
Osnove 6.
Djelokrug rada …… 7
Metodologija 7
ZAKLJUČCI– ELEKTRIČNA ENERGIJA 8
Prenos i distribucija elektrčne energije 8
1. Tip regulacije................................................................................................................... 8
2. Dozvoljeni prihod i računovodstvene smjernice .............................................................9
3. Operativni i troškovi održavanja....................................................................................10
4. Povrat na sredstva......................................................................................................... 13
5. Stopa povrata................................................................................................................ 18
6. Amortizacija.................................................................................................................. 21
7. Gubici............................................................................................................................ 23
8. Otpisani prihod............................................................................................................. 32
9. Količine......................................................................................................................... 34
10. Ispravke..................................................................................................................... 36
11. Pomoćne usluige....................................................................................................... 36
Regulacija snabdijevanja električnom energijom 39
12. Univerzalne usluge.................................................................................................... 47
ZAKLJUČCI GAS 52
Prenos i distribucijagasa 52
1. Tip regulacije................................................................................................................. 52
2. Dozvoljeni prihod i računovodstvene smjernice............................................................53
3. Operativni i troškovi održavanja....................................................................................54
4. Povrat na sredstva........................................................................................................ 57
5. Stopa povrata................................................................................................................ 61
6. Amortizacija.................................................................................................................. 63
7. Gubici............................................................................................................................ 65
8. Otpisani prihod.............................................................................................................. 71
9. Količine......................................................................................................................... 73
10. Ispravke..................................................................................................................... 74
Regulacija snabdijevanjam gasom 75
REZIME REZULTATA 80
1. REGULACIJA MREŽE.................................................................................................. 80
2. REGULACIJA CIJENE ENERGIJE...............................................................................82
3. UNIVERZALNE USLUGE – ZADANI SNABJEVAČ – OBAVEZA PRUŽANJA JAVNIH
USLUGA.............................................................................................................................. 83
4. OSTALE NAKNADE...................................................................................................... 83
PRILOZI 84

2
Lista tabela

Tabela 1 Uloga regulatora u ocjenjivanju imovine za prenos i distribuciju električna energija ......14
Tabela 2 Tretman ROI u toku regulatornog perioda –prenos i distribucija električne energije.......18
Tabela 3 PPTK i njegove komponente za prenos i distribuciju električne energije (all u %)..........19
Tabela 4 Amortizacija imovine za prenos i distribuciju električne energije....................................22
Tabela 5 Priznavanje gubitaka u dozvoljenom prihodu za prenos i distribuciju električne energije24
Tabela 6 izvori količina korišćenih za obračun tarife za prenos i distribuciju električne energije...34
Tabela 7 Troškovi pomoćnih usluga priznatih u dozvoljenom prihodu za prenos električne energije
...................................................................................................................................................... 37
Tabela 8 Struktura dozvoljenog prihoda za snabdijevanje električnom energijom.......................39
Tabela 9 Tretman promjene cijena roba u finalnoj regulaciji cijene električne energije.................41
Tabela 10 Finansiranje regulatorne agencije i finalne tarife i cijene..............................................45
Tabela 11 Uključivanje podrške električne energije iz obnovljivih izvora u tarifiama za električnu
energiju......................................................................................................................................... 46
Tabela 12 Primjena zadanog snabdjevača i snabdjevača posljednjeg izbora kao univerzalne usluge u
snabdijevanju električnom energijom
Tabela 13 Slučajevi u kojima se primjenjuju zadani snabdjevač ili snabdjevač posljednjeg izbora 49
Tabela 14 Uloga regulatora u ocjenjivanju imovine za prenos i distribuciju gasa..........................58
Tabela 15 Tretman ROI u toku regulatornog perioda- prenos i distribucija gasa...........................61
Tabela 16 PPTK i njegove komponente za prenos i distribuciju gasa (all u %).............................62
Tabela 17 Amortizacija imovine za prenos i distribuciju gasa.......................................................64
Tabela 18 priznavanje gubitaka u dozvoljenom prihodu za prenos i distribuciju gasa..................67
Tabela 19 izvori količina korišćenih za obračun tarife za prenos i distribuciju gasa......................73
Tabela 20 Struktura dozvoljenog prihoda za snabdijevanje gasom.............................................75
Tabela 21 Tretman naknade u cijeni roba kod finalne regulacije cijene gasa................................77
Tabela 22 Finansiranje regulatorne agencije i finalne tarife i cijene gasa.....................................79

Lista grafika

Grafik 1Tip primijenjene regulacije kod prenosa i distribucije električne energije 8

Grafik 2 Priznavanje O&O troškova u dozvoljenom prihodu za prenos i distribuciju e. energije 11
Grafik 3 Priznavanje amortizacije kapitalnih doprinosa kod prenosa i distribucije e.energije 15
Grafik 4 Tretman nematerijalne imovine u ROI za prenos i distribuciju električne energie 17
Grafik 5 Tretman radnog kapitala u ROI za prenos i distribuciju električne energije 17
Grafik 6 dozvoljeni nivoi gubitaka na prenosnim mrežama (u %)…………………………………….31
Grafik 7 Dozvoljeni ponderisani prosjek troška kapitala na distributivnim mrežama (u %) 31
Grafik 8 Oduzimanje neregulisanih prihoda iz regulisanog dozvoljenog prihoda kod prenosa i
distribucije električne energije 32
Grafik 9 Tretman nenaplaćenih dugova za snabdijevanje električnom energijom 44
Grafik 10 vremenski raspored za ukidanje regulisane cijene za domaćinstva i mala preduzeća 51
Grafik 11Tip primijenjene regulacije kod prenosa i distribucije gasa 53
Grafik 12 Priznavanje O&O troškova u dozvoljenom prihodu za prenos i distribuciju gasa 55
Grafik 13 Tretman amortizacije kapitalnih doprinosa kod prenosa i distribucije gasa 59
Grafik 14 Tretman nematerijalne imovine u ROI za prenos i distribuciju gasa 60
Grafik 15 Tretman radnog kapitala u ROI za prenos i distribuciju gasa 60
Grafik 16 Dozvoljeni nivoi gubitaka na mrežama za prenos gasa (u %) 70
Grafik 17 Dozvoljeni nivoi gubitaka na mrežama za distribuciju gasa (u %) 71

3
Grafik 18 Oduzimanje regulisanih prihoda od regulisanih dozvoljenih prihoda kod prenosa i distrbucije
gasa 72

REZIME
Ovim dokumentom se vrši procjena elemenata regulisanih mrežnih tarifa i cijena energije za
krajnjeg korisnika koji su trenutno u primjeni, kao i kriterijuma za njihov obračun. Analiza
istražuje da li regulatorne agencije u Energetskoj zajednici prate iste principe i kriterijume kod
regulisanja tarifa i cijena ali ne ocjenjuje adekvatnost primijenjenih mehanizama.

Izvještaj obuhvata Albaniju, Bosnui Hercegovinu, Hrvatsku, bivšu Jugoslovensku Republiku

Makedoniju, Gruziju, Kosovo*, Moldaviju, Crnu Goru, Srbiju, Turskui Ukrajinu. Rezultati za Bosnu
i Hercegovinu koji se razlikuju za Federaciju Bosnei Hercegovine (FBIH), Republiku Srpsku (RS) i
kanton Brčko u BIH, odvojeno su prikazani u ovom izvještaju.

Procjena pokazuje da regulacija energetskog sektora mrežne industrije prati slične principe i
kriterijume za određivanje mrežnih tarifa i, gdje je to moguće, cijena za kranje korisnike na svim
analiziranim tržištima.

4
UVOD
Energetska zajednica

Energetsku zajednicu1čine Albanija, Bosna i Hercegovina, bivša Jugoslovenska Republika

Makedonija, Kosovo*2, Moldavija, Crna Gora, Srbijai Ukrajina.Armenija, Gruzija, TurskaiNorveškasu
države posmatrači.

Regulatorni odbor Energetske zajednice (ECRB) posluje na osnovu člana 58 Ugovora o energetskoj
zajednici. Kao institucija Energetske zajednice ECRB savjetuje Ministarski savjet i stalnu grupu visokog
nivoa Energetske zajednice o detaljima vezanim za zakonska, tehniča i regulatorna pravila i treba da
daje preporuke u slučaju prekograničnih sporova između regulatora.

Osnove

Cijene energije i mrežne tarife su važne za potrošače kako u pogledu njihovog nivoa tako i u
pogledu uključene usluge. Tretman izvjesnih elemenata za njihov obračun, kao što su mrežni i
komercijalni gubici, nenaplativi dugovi, nove investicije, kao i nivo povrata garantovanog mrežnim
opratorima i/ili snabdjevačima direktno utiču na nivo promjena. U tom kontekstu i tretman cijena roba
t.j. obračun cijena javnih snabdjevača je takođe od velikog značaja.

Acquis communautaire o električnoj energiji i gasu 3 Energetske zajednice zahtijeva od regulatornih

agencija da osiguraju da tarife za prenos i distribuciju budu transparentne, odražavaju troškove 4 i
odobre potrebne investicije u mreže 5. Treći energetski paket, pored toga, zahtijeva regulisane tarife ili
1
www.energy-community.org.
2
U ovom dokumentu simbol * upućuje na sljedeću izjavu: ova oznaka ne dovodi u pitanje stavove o statusu, i u skladu je sa
UNSCR 1244 imišljenjem ICJ o deklaraciji o nezavisnosti Kosova.
3
Na osnovu odluke Ministarskog savjeta Energetske zajedniceD/2009/02/MC-EnC, acquis Energetske zajednice uključuje Treći
energetski paket, naime Direktivu za električnu energiju 2009/72/EC, Regulativu za električnu energiju (EC) 714/2009, Direktivu
za gas 2009/72/EC i Regulativu za gas (EC) 715/2009. Trenutno se primjenjuje drugi energetski paket, naime direktiva za
električnu energiju 2003/54/EC, Regulativa za električnu energiju (EC) 1228/2003, Direktiva za gas 2003/55/EC i Regulativa za
gas (EC) 1775/2005, rok za primjenu Trećeg paketa je 1 januar 2015.g. Osim ako nije drugačije navedeno, ovaj dokument
upućuje na drugi energetski paket.
4
Recital 18 Direktive za elektrčnu energiju irecital 16 Direktive za gas
5
čl.23(2) Direktive za električnu energiju ičl.25(2) Direktive za gas

5
metodologije za njihov obračun kako bi se osiguralo da se operatorima prenosne i distributivne mreže
omoguće adekvatni podsticaji, kako kratkoročni tako i dugoročni, kako bi se povećala efikasnost,
podstakla integracija tržišta i sigurnost u snabdijevanju i podržale odnosne istraživačke aktivnosti 6.

Djelokrug rada

Ovim dokumentom se vrši procjena elemenata regulisanih mrežnih tarifa i cijena energije za
krajnjeg korisnika koji su trenutno u primjeni, kao i kriterijuma za njihov obračun. Analiza
istražuje da li regulatorne agencije u Energetskoj zajednici prate iste principe i kriterijume kod
regulisanja tarifa i cijena ali ne ocjenjuje adekvatnost primijenjenih mehanizama.

Izuzimajući raspoložive informacije o mrežnim gubicima i stopama povrata, procjena ne daje prikaz
grafika o odobrenom prihodu i njegovim elementima niti nivoima mrežnih tarifa i cijena energije.
Analiza postojećih tarifa i cijena koje odražavaju trošak bi zahtievala detaljno istraživanje specifičnih
nacionalnih okolnosti- razvoj tržišta, zakonodavstvo i regulaciju.

Izvještaj obuhvata Albaniju, Bosnui Hercegovinu, Hrvatsku, bivšu Jugoslovensku Republiku

Makedoniju, Gruziju, Kosovo*, Moldaviju, Crnu Goru, Srbiju, Turskui Ukrajinu. Rezultati za Bosnu
i Hercegovinu koji se razlikuju za Federaciju Bosnei Hercegovine (FBIH), Republiku Srpsku (RS) i
kanton Brčko u BIH, odvojeno su prikazani u ovom izvještaju.

Metodologija

Podaci i analize date u ovom izvještaju se zasnivaju isključivo na informacijama koje su dale
regulatorne agencije analiziranih tržišta. Upitnik korišćen za prikupljanje podataka je dat u prilogu ovog
izvještaja. Informacije koje su date za Gruziju i Tursku nijesu kompletne i/ili nijesu razjašnjene u svim
poglavljima.

6
čl. 37(8) Direktive 2009/72/EC Evropskog Parlamentaisavjeta od 13 jula 2009 o opštim pravilima za interno tržište električne
energije kojom se opoziva Direktiva 2003/54/EC i čl.41(8) Direktive 2009/73/EC Evropskog Parlamentai savjeta od 13 jula 2009
o opštim pravilima za interno tržište gasa kojom se opoziva Direktiva 2003/55/EC

6
ZAKLJUČCI– ELEKTRIČNA ENERGIJA
Analiza prati strukturu dijela upitnika koji se odnosi na električnu energiju i rezimira odgovore dobijene
za svako pitanje.

Prenos i distribucija električne energije

1. Tip regulacije

Slično cijeni proizvoda u svim ostalim regulisanim mrežnim idustrijama, tarife za prenos i distribuciju
električne energije mogu da se odrede korišćenjem različitih tipova mehanizama za kontrolu cijene:

 Regulacija „trošak plus (ili stopa povrata), kdo koje se tarife utvrđuju na način da obuhvate
opravdane troškove operatora sistema i uključuje stopu povrata, tj. povrat na uloženi kapital;
 Regulacija maksimalnog prihoda ili cijene, gdje se prihod/cijene utvrđuju unaprijed za fiksni
period od nekoliko godina (“regulatorni period”) omogućavajući operatorima sistema da
sačuvaju uštede koje su u stanju da steknu tokom ovog perioda zbog, na primjer povećanja
efikasnosti u poslovanju sistema. Tipično, godišnje tarife koje su rezultat regulacije gornje
granice samo se razlikuju u zavisnosti od nivoa inflacije korigovane unaprijed određenom
procentualnom stopom rasta efikasnosti7;
 Ostali mehanizmi, kao što su uporedna regulacija ili regulacija zasnovana na učinku; međutim,
ovi modeli su manje u upotrebi u odnosu na pethodno spomenute mahanizme.

Na analiziranim tržištima primjenjuju se regulacija trošak plus, regulacija gornje granice cijene i
gornje granice prihoda. Regulacija trošak plus se normlano sprovodi godišnje 8, dok u slučaju
podsticajne regulacije prihodi ili cijene se ograničavaju za različite periode, naime 3 ili 5 godina. Dolje
dat grafik daje pregled primijenjenih modela regulacije tarife po državi.

Grafik1Tip implementirane regulacije kod prenoda i distribucije električne energije

7
CPI-X regulacija uključuje utvrđivanje puta cijene (regulacija maksimalne cijene) za energetsko preduzeće, omogućavajući
promjene inflacije (CPI faktor) i očekivana poboljšanja efikasnosti (“X” faktor; Ova poboljšanja efikasnosti su odvojena od
ekonomskih poboljšanja koja se već reflektuju u promjeni u CPI). “X” faktor može, pored očekivanih poboljšanja efikasnosti, da
inkorporira druge aspekte kao što su nagrade za poboljšanja u kvalitetu, nivou usluga ili aktivnosti na upravljanju potražnjom..
CPI-X regulacija može takođe da se primijeni na ukupno tražene prihode u okviru regulacije maksimalnog prihoda (nezavisni
regulatorni sud za utvrđivanje cijene (Dennis Mahoney, Cato Jorgensen, Thomas Clay), podsticaji za uštede troškova kod CPI-X
režima, jul 2011).
8
To, međutim, ne znači da se tarife obavezno mijenjaju svake godine, već da je osnova za obračun jedna godina. Tarife se
mijenjaju na zahtjev regulisanog preduzeća ili kada regulator zaključi da su se promijenili osnovni parametric za obračun
dozvoljenog prihoda i tarifa.

7
Specifična pravila koja se primjenjuju za distribuciju električne energije u Gruziji i Ukrajini:

- U Gruziji, dugoročne tarife9 su bile uvrđene na osnovu memoranduma o razumijevanju između

države i investitora.
- U Ukrajini se primjenjuje metod trošak plus sa nekim elementima podsticajne regulacije za 5
kompanija za distrubuciji električne energije, privatizovanih u 2001 10. Detaljnije rečeno, za
prvih 7 godina nakon usvajanja metodologije (2001 do 2008) za ovih 5 kompanija obraččun
tarifa se zasniva na jedinstvenoj stopi povrata na sredstva od 17% nakon poreza. Za narednih
pet godina (period 2008 do 2013) stopu povrata se određuje NERC, ali ona ne može da bude
niža od 11 %. Trenutno, stopa povrata je 15%. Da bi se podstaklo smanjenje troškova,
metodologija predviđa fiksiranje nivoa operativnih troškova (na početku primjene metodologije
za period koji nije duži od 7 godina), korigovan da bi odrazio promjene u indeksu cijene
proizvođača i korekciji tarife kada se obim potrošnje mijenja za više od 5% of the those used in
the approved tariff11. It has to be noted, though, that – based on the information available - the
applied adjustment parameters seem to rather entail correction to external factors than a real
cost cutting incentive.
- .

2. Dozvoljeni prihod I propratne smjernice

For all types of tariff regulation dozvoljeni prihod need to be determined, i.e. costs allowed to be
recovered via the network tariff. Eligible costs include justified and efficient operation and maintenance
costs and the capital costs (depreciation and return on assets). Dozvoljeni prihods additionally also
include the compensation of network losses as well as a correction factor addressing variations
between the forecast and actual values.

9
Gruzijski regulator nije dostavio detalji o trajanju i sadržaju ovog memoranduma
10
Za druge distributivne kompanije koristi se metod trošak plus.
11
Podsticajna regulacija ne upućuje na CPI-X metodologiju, kako je to gore istraženo.

8
In order to facilitate the process of dozvoljeni prihod calculation, some regulatorne agencije require
from regulated companies to prepare and submit separate regulated accounts that to a certain extent
differ from national statutory accounting standards. Such “regulatory accountingrules” (guidelines)
should not create an additional burden for regulated companies but help them to understand the
process of regulation and increase transparency.

Among analyzed električna energija markets regulatorne agencije define separate regulatory
accounting guidelines12 only in the entities of Bosna i Hercegovina for distribucija and
Albanija,Hrvatska, Kosovo*, Moldavija and Turska for both prenos and distribucija. In Montenegro
accounting rules for tariff regulation will be applicable to all regulated energy undertakings as of 1
January 2014.

3. Operating and maintenance costs

Operating and maintenance costs (O&M costs) incurred by regulated companies allow them to provide
and maintain the adequate service level. Regulatorne agencije recognize operating and maintenance
costs in the dozvoljeni prihod but have to differentiate between justified and non-justified costs in order
to avoid excessive and unnecessary costs being included in tariffs.

The assessment hereinafter analyses whether regulators apply criteria for recognition of
operativnih troškova u dozvoljenom prihodu koji dediniše koji se troškov smatraju
opravdanim/neopravdanim, unaprijed određujući neke troškove kao troškove koji se mogu i ne mogu
kontrolisati13 i/ili unaprijed određujući ograničenja za neke troškove.

- Regulatorne agencije of Bosna i Hercegovina, Hrvatska, Gruzija, Kosovo* and Turska include all
operating and maintenance costs from statutory accounting in the dozvoljeni prihod for električna
energija prenos and distribucija14.
- On the other side, regulators in Albanija, Moldavija, BJR Makedonija, Crna Gora, Srbija and
Ukrajina define certain categories of O&M costs as justified or non-justified andconsider all O&M
costs controllable. However, an explicit lista non-justified costs only exists in Moldavija, Crna Gora
and Ukrajina and typically includes fines/penalties system operator have to pay to other authorities,
sponsorships, doubtful debt15, costs of network connections16 etc.

12
In Croatia there is a Decision on the Method and Procedure for Keeping Separate Accounting of Energy Undertakings,
adopted by the regulatory authority (Official Gazette No. 103/03).In Moldavija there is Regulation on accounting system at the
regulated electro energetic companies, approved by the decision of theAdministrative board of the National Agencyof Energy
Regulation No. 78 of 29.12.2002. In Kosovo* these rules are part of TSO/MO and DSO Pricing Rules.
13
Non- controllable costs, if recognized as such, are normally automatically included in the dozvoljeni prihod.
14
Exception is distribution in BIH entity Republika Srpska- the regulator does not include automatically all O&M costs from
statutory accounting.
15
A doubtful debt is an account receivable that might become a bad debt at some point in the future.
16
Costs of network connections are to be covered by separate connection charge.

9
- In BJR Makedonija the regulatory authority defines limits for some costs categories: for example,
maintenance costs may only amount to 25% of annual depreciation costs and gross salaries per
employee are only recognized to the extent not 40% higher than average gross salaries in the
country.

A graphical overview of the implemented approaches for recognition of operating and maintenance
costs in the dozvoljeni prihod is presented in Grafik2.

Grafik2Recognition of O&M costs in the dozvoljeni prihod for električna energija prenos and distribucija

In case of incentive based regulation an efficiency factor is applied i.e. „the regulator sets cijene not
on the basis of the company’s actually incurred costs, but rather on a level of cost that the regulator
considers efficient. The difference between actual costs and the regulatory estimation of efficient costs
is reflected in the X factor. The X factor applies for a given number of years (the regulatory period) and
determines the annual change in cijene in such a way that cijene move in line with the anticipated
efficiency improvements. Through the X factor, consumers directly participate in the expected cost
reductions in the form of lower price. On the other hand, the company will also benefit as long as it
manages to reduce costs in excess of the X factor. The residual cost savings can then be retained in
the form of higher profits.”17

17
Efficiency factor’s determination (X factor), Issue paper of ERRA Tariff/Pricing Committee, prepared by KEMA International
B.V. in August 2006, please see more on X Factor determination on http://www.erranet.org/Library/ERRA_Issue_Papers#2

10
Kako je ranije objašnjeno, podsticajna regulacija za prenos električne energije se primjenjuje samo u
Albaniji, BJR Makedonija18, Kosovu*, Moldaviji, Crnoj Gori i Turskoj. Trenutno se primjenjuju
sljedećei faktori efikasnosti:

For prenos:

 0% in Albanija and Turska

 4% in Kosovo*
 2% in Moldavija and
 0.5 consumer price index (CPI) in Crna Gora

For distribucija:

 0% by the end of 2014 in Albanija, set by the regulatory statement that is a part of the
privatization agreement,
 5% as of 2015 in Kosovo*
 2% sector based in Moldavija,
 0.5 CPI sector based in Crna Gora
 Individually based for 21 DSOs in Turska and
 0% for five companies where incentive based regulation is applied in Ukrajina 19 (as mentioned
above, operating costs are fixed for a certain period, but adjusted only based on inflation or
related indices. During 2013 the regulator carried out activities in order to implement incentive
tariff regulation for električna energija DSO. The overall performance indicator was used to
control operating costs. For the first regulatory period (three years), this factor is set at 1%.
From the second regulatory period individual performance indicator will be introduced, which
will be calculated on the basis of benchmarking analysis (DEA and parametric methods))

However, the methodologies for X factor determination still do not follow academically
recognized benchmarking models, such as parametric and non-parametric tests, but the individually
developed procedures of relevant regulatorne agencije. In Kosovo*, for example, the regulator uses
productivity standards: for measuring potential efficiency improvements the number of employees per
100km of network is used as reference standard. Furthermore, when defining efficiency factor, the
regulator compares equipment used in Kosovo and other similar električna energija systems, but also
take into account the similarities in tariff proceedings. In Crna Gora efficiency factor is set on the basis
of comparison to efficiency factors applied by regulators of other countries, for companies with the
same or similar performances. In Moldavija the regulator takes into consideration efficiency
improvements in the previous periods as well as the investments contributing to efficiency increase.

In addition to regular operating and maintenance costs,

18
Revenue cap type of regulation applied in FYR of Macedonia is based on setting the 3-years- revenue stream allowing
increase in revenues coming from inflation rate and smoothing factor i.e. factor that distributes differences between planned
revenues of a company and those approved by the regulator over the regulatory period. Increase in efficiency is currently not
envisaged.
19
Pogledati poglavlje 1

11
 - The regulatorne agencije of Albanija, BJR Makedonija, Crna Gora and Srbija recognize costs
related to reactive power as part of električna energija prenos system operators’ revenues.
These costs are normally not displayed as separate category, but constitute a part of other
costs, such as ancillary services, losses etc. However, the majority of regulatorne agencije
(Bosna i Hercegovina, Hrvatska, Gruzija, Kosovo* and Moldavija) state that TSOs did not have
costs related to reactive energy but consider revenues earned from reactive energy 20 a part of
generators’ income, i.e. these revenues have to be transferred to generators.
- For električna energijadistribucija the costs of reactive power are included in the dozvoljeni
prihod only in Bosna i Hercegovina- Republika Srpska and BJR Makedonija. In Albanija,
realized costs of reactive power from the previous year are deducted from the DSO’s
dozvoljeni prihod of the current year21. Nevertheless, an explicit tariff for reactive energy exists
in all analyzed markets for system users that can register consumption of reactive energy.

The regulators of Bosna i Hercegovina, BJR Makedonija and Srbija also cover cost of reserves in the
DSOs’ dozvoljeni prihod.

4. Return on assets

In order to recognize owner’s investment in the regulated company, dozvoljeni prihod always include
return on assets. Return on assets is measured by multiplying the rate of return with the value of the
regulatory asset base. The regulatory asset base (RAB) aggregates net asset values of fixed assets
and sometimes current assets (also called working capital), excluding capital contributions, sometimes
also assets under construction 22. Asset valuation is a very important element of RAB determination.
Regulatorne agencije therefore sometimes prefer using their own asset valuation methodology. In any
case all of them have a discretionary right to define and decide which assets belong to the regulated
business and, to avoid sunk investments23, which investments are justified.

The results of questionnaire related to RAB structure and asset valuation are presented below. It
has to be highlighted that the process of dozvoljeni prihod determination in Ukrajina does not recognize
the concept of RAB related calculation of return (the dozvoljeni prihod for the majority of companies is
calculated so to include all reasonable operating costs, depreciation, return on investments and income
tax. For 5 companies (privatized in 2001) as the rate base for revenue calculation the company
purchase price (resulting from the privatization process) is used as well as investment and
depreciation. The new methodology of incentive based regulation will introduce RAB concept.).
Therefore, the information on Ukrajina in this and the following chapter will be only selective, as
appropriate. When providing information on RAB, this consequently does not include Ukrajina.

20
Reactive energy is normally one of the tariff elements for electricity transmission and/or distribution
21
Tariff for reactive power is 15% of tariff for active energy; however there is no realistic calculation of planned reactive energy
and the revenue earned from it is treated as deducted revenue (please see Chapter 8). As of 2014 this practice will be changed.
22
Assets not yet commissioned, i.e. not yet in use.
23
Investments that will not allow recovering of capital invested, because e.g. relevant asset will be underused or not used at all.

12
Tabela1Role of regulators in evaluating električna energija prenos and distribucija assets
Has the regulator right to Have assets been re-
re- evaluate assets if evaluated in the process of
deems necessary? tariff regulation?

Albanija yes no

no for prenos/ yes for

Bosna i Hercegovina no
distribucija

Hrvatska no no

BJR Makedonija yes yes

no for prenos/yes for

Gruzija yes
distribucija

Kosovo* yes yes

Moldavija no yes

Crna Gora yes no

Srbija no no

Turska yes yes

yes, but the reason was not

Ukrajina no
related to regulatory process

In Albanija, Gruzija, Kosovo*, Crna Gora and Turska for prenos and distribucija and Bosna i
Hercegovina only for distribucija, the regulatorne agencije of the analyzed markets have legal
right to re-evaluate assets of regulated companies. In Kosovo*, Moldavija and Turska the regulator
corrects asset values only to the consumer price index (CPI). In Crna Gora the regulator may require
an independent body i.e. auditor to re-evaluate assets if the value presented by prenos or distribucija
companies is doubtful; however, the regulator so far has not exercised this power.

In all investigated markets the regulatorne agencije approve investment plans ex-ante and
monitor their implementation24. The realization of investment plans influences the value of the RAB
only to the extent the dozvoljeni prihod includes some investments in advance i.e. before commission
of assets, which is the case only in Crna Gora. More in detail, in Crna Gora the assets under
construction are included in the RAB as a tool for incentivizing investments: for the first year of the 3
year regulatory period the costs related to construction in progress at the end of the previous year are
included, for the second year the sum of construction in progress costs for the previous two years and

24
In Ukrajina the regulator considers investment plans of the company after prior approval of the relevant ministry. The regulator
may decide not to include into tariff all items of investment plan approved by the ministry.

13
for the third year the sum of construction in progress costs for the previous three years. However, if
during a year an investment is realized with a value less than 50% of the value approved for that year,
the regulator excludes the total value of the relevant investment as well as relevant depreciation from
the RAB until the asset is put in operation. If an investment, whose implementation is planned for the
period of three or more years, is realized during the first two years by less than 50% of the plan for the
relevant period, the total investment is excluded from the basis for calculation of depreciation and
return until put into operation.

Another very important element of RAB calculation are capital contributions, i.e. grants from e.g. the
government or an international institution and direct payments by asset users, in case of networks
typically connection assets. Normally the assets financed from such contributions are excluded from
the RAB, in order to avoid return on assets that are not the result of the regulated company’s
investment. In some cases however, depreciation of these assets is allowed with a view to enable
replacing of the assets in the future.

In all analyzed markets the capital contributions are excluded from the RAB by the regulators.
However the depreciation of capital contributions is included in the dozvoljeni prihod for električna
energija prenos and distribucija in the majority of analyzed markets. For details, please see the grafik
below.

Grafik2Recognition of depreciation of capital contributions in električna energija prenos and distribucija

Other elements considered for calculating the RAB are intangible assets and working capital.
Intangible assets are long-termresources of the company, but have no physical existence. They
derive their value from intellectual or legal rights and from the value they add to the other assets25 .

25
Examples are patents, copyrights, goodwill.

14
When determining the RAB some regulatorne agencije decide not to include the value of these assets.
Working capital, defined as difference between company’s current assets 26 and current liabilities27 is
also sometimes excluded from RAB.

The graphs below show the recognition of intangible assets and working capital in the RABs of the
investigated markets.

Grafik3Treatment of intangible assets in RAB for električna energija prenos and distribucija

Grafik4Treatment of working capital in RAB for električna energija prenos and distribucija

26
Assets that will be turned into cash within a year.
27
Liabilities that will be repaid within a year.

15
From the graphs above it can be concluded that regulatorne agencije of the analyzed markets treat
values of intangible assets and working capital differently when calculating the RAB 28. Both
approaches however may be justified theoretically.

Finally, once the RAB has been calculated for the regulatory period, it may be adjusted on yearly basis in case of
incentive based regulation, As shown above, this is the case in BJR Makedonija, Kosovo*, Moldavija, Crna Gora
and Turska. The Tabela below provides explanations on the approaches applied.

Tabela2Treatment of RAB during the regulatory period- električna energija prenos and distribucija

Treatment of RAB during the regulatory

period
RAB is not changed during the regulatory
Albanija period.
RAB is not changed during the regulatory
BJR Makedonija period.
RAB is not changed during the regulatory
Kosovo* period.
Investments commissioned during the
Moldavija previous year always increase RAB in the
following year.
Yearly based revision includes adjustments of
Crna Gora investments that are realized below 50% of
the value approved for that year.

Turska RAB is yearly adjusted by the CPI

While the purpose of incentive based regulation, in principle, is to allow revenues remaining
unchanged during the regulatory period and therefore allowing regulated utilities to consume the
benefits of cost reductions during that time, the approach of Moldavija’s regulator has to be assessed
very positively against incentivizing investments. In case of Crna Gora the regulator´s approach
develops logic against the background that investments are recognized in the RAB before their
commission29 and there has to be control over their implementation with a view not to allow regulated
utilities to earn return on not realized investments.

5. Rate of return

Regulated service providers have interest to invest only if the recognized return allows them to cover costs of
equity and debt finance needed for the realization of the envisaged projects. The rate of return regulators
determine has to take into consideration the credit conditions available to particular regulated companies but also

28
In Crna Gora the value of recognized working capital is limited to 1/12 of the justified operational costs for transmission and 1/8
for distribution. In Albania, 1/12 of the operational costs is also applied for transmission.
29
On details see earlier.

16
to comparable industries since the utilities in the energy sector do not only compete among themselves for
financing sources. Furthermore, the rate of return has to enable investors to cover their finance (equity)
requirements and secures at least the risk- free rate of interest plus a risk premium reflecting risks specific for the
particular sector of energy industry.

The Weighted Average Cost of Capital (WACC) is a commonly used method for calculation of the
rate of return in regulated energy business. As the name suggests, it reflects weighted average of the
cost of each individual component of the capital structure 30. WACC may be determined as pre-tax or
post-tax grafik. Pre- tax WACC allows not only coverage of finance cost but also tax coverage. Post-
tax WACC assumes that the utility already paid the tax. For the estimation of costs of equity usually the
Capital Assets Pricing Model is applied31.

The regulatorne agencije of the analyzed markets reported grafika for real pre-tax WACC for električna
energija prenos and distribucija, including the relevant components for its calculation and they are
presented in the Tabela below. As mentioned in the previous chapter, Ukrajina does not implement the
concept of RAB and return on assets; consequently there will be no related information on Ukrajina in
this chapter.

Tabela3WACC and its components for električna energija prenos and distribucija (all in %)

WACC (real, Gearing Return Retur Risk Beta Marke

pre-tax) (debt/ on n on free coefficien t
(debt+equity) equity debt rate t return
)

T 5.47 60 8.51532 3.4433 - - -

Albanija
D 9.967 60 16.4434 5.65 7.4335 1.32 -

0,67% on
T36 - - - - - -
capital value

30
Weight is the share of capital component.
31
For more details on WACC calculation please see e.g. http://books.google.at/books?
id=cGqmeynpZ48C&printsec=frontcover&source=gbs_ge_summary_r&redir_esc=y#v=onepage&q&f=false or
http://regulationbodyofknowledge.org/wp-content/uploads/2013/03/Jenkinson_Regulation_and_the.pdf
32
Equal to treasury bond rate
33
Return on debt is calculated as the sum of interest payments on long term debt during the year, divided by the total principal
on long term debt (the total amount borrowed) at the beginning of the year). The figure for the rate of debt reported in the table
is the average for the three years of the regulatory period.
34
The return on equity, risk free rate + country risk and beta coefficient are defined/decided in the regulatory statement that is
part of the privatization package.
35
"Risk free rate" includes both risk free rate and country risk

17
 Bosna i
Hercegovin D37 3.50 1.28 3.50 7.10 - - -
a

T 5.67 21 6.11 5.02 - - -

Hrvatska
D 4.72 21 4.91 4.01 - - -

T 5.6542 60.69 8.53 2.33 4.6838 1 3.85

BJR
Makedonija
D 6.7265 53.35 8.53 4.32 4.68 1 3.85

T 5.07 40 6.1 439 440 141 0.6

Kosovo*
D 12 40 13.9 9.142 6 1 0.6

1.954 Not
T 8.95 50 8.705 8 Not used
743 used
Moldavija

D 14.12 35 13.78 9.13 1.9547 6744 5.2645

T 7.2446 0.5 10.9 6.8147 1.9348 0.6849 6

Crna Gora
D 7.24 0.5 10.9 6.81 1.93 0.68 6

36
WACC formula exists, but due to non- existent capital market it cannot be calculated. However there is a rate of return
determined for transmission.
37
For BIH- Republika Srpska
38
Return on Goverment bonds
39
Weighted average interest rate of existing long- term loans of the TSO/MO.
40
Determined by the Government
41
As similar utilities internationally.
42
Weighted average interest rate of existing long- term loans of the DSO.
43
Treasury bonds risk- free rates of USA with maturity more than 10 years, according to statistics published on Bloomberg.
44
Beta coefficient is determined yearly based on the corresponding average value of the energy sector of the USA published in
DAMODARAN source, compartment Data Serts, Levered an unlevered Betas by Industry. (under the new tariff methodology
from 2013 Beta coefficient is established at 47%.
45
The market return is determined in January of the first year of the regulatory period as the arithmetic mean of the last 10 years
in the U.S. (Stock-T. Bills) and published in Damodoran in the section Data Sets, Historical Return on Stoks, Bonds and Bills,
arithmetic Average, Risk Premium.
46
WACC is different for every year in the regulatory period (2012-2015). This is the figure for the third regulatory period, i.e. from
1st August 2014 to 31st July 2015. For the past years it was 6.80% and 7.02% respectively.
47
Set as the sum of risk-free rate and country risk- premium. The country risk premium is equal to the premium for the risk of
non-payment of a country, multiplied by the volatility coefficient of the capital markets in developing countries.
48
If parameters not available in Crna Gora, the rate shall be equal to the average annual rate of return to German Government
bonds for December of the previous year with maturity of 10 years.
49
Calculated based on international benchmarks

18
 T 6.64 60 9 4 0.91 0.7 11.59
Srbija50
D 3.751 - - - - - -

T 9.93 50 - - - 0.62 -
Turska
D 10.49 50 - - - - -

6. Depreciation

Depreciation is an allocation of asset costs to the accounting period in which the asset provides
benefits to the company. The purpose of calculating depreciation is building up funds for the
replacement of assets. There are a number of approaches for calculating depreciation, but the most
widely used is straight-line/linear depreciation where the asset is written off every year with the same
amount. In order to quickly write off an asset and therefore return the invested capital sooner, some
regulators use accelerated depreciation where yearly deductions are greater in the first years of asst
use. It has to be noted that depreciation used for regulatory tariff setting can deviate from national tax
law depreciation rules. The regulatorne agencije of the analyzed markets use straight-line
depreciation and there is no differentiation between assets acquired before and during the
regulatory period (except in Kosovo*).Only in Albanija the depreciation method applied is based on
fiscal rates52. In Ukrajina the regulator considers depreciation calculated by a company using a method
in line with applicable tax code. However, in practice most of the companies use straight- line
depreciation. In Gruzija, Kosovo*, Srbija and Turska the regulators determine assets lives that are used
in the dozvoljeni prihod calculation. In other cases the regulator accepts the asset lives used by the
regulated companies, in line with applicable national accounting standards and rules. The details on
the depreciation methods for električna energija prenos and distribucija are shown in the Tabela
below.The information on asset lives in straight-line depreciation explains how quickly the asset costs
are actually recovered.

50
All figures for 2013
51
Required percentage of energy utility for distribution.
52
Based on the Law on Fiscal Rates, the Ministry of Economy issues every year Decision on fiscak rates and the regulator
takes over the relevant depreciation rates.

19
Tabela4Depreciation of električna energija prenos and distribucija assets

Depreciation Does the Asset lives (in years)

method applied regulator define
asset lives for prenos distribucija
the regulatory
purposes?

Networks and Networks and

Albanija Fiscal rates no substations 35 substations 20
years years

Bosna i
Network 25-40,
Network and
Straight- line no substations 35-
Hercegovina substations 40
60
Buildings – 40, Buildings – 35,
električna električna
energija energija
equipment – 33 equipment – 25
Hrvatska Straight- line no (primary), (primary),
električna električna
energija energija
equipment – 15 equipment - 15
(secondary) (secondary)
Buildings 40, Buildings 40,
električna električna
BJR Makedonija Straight- line no
energija energija
equipment 20, equipment 20,
Straight- line, but Network 50, Network 50,
Gruzija other methods yes substations 50- substations 50-
also possible 70 70
Straight- line (the
Network 35,
asset lives differ
Network and substations 35
Kosovo* for investments yes
substations 40 metering
before and after
equipment 20
2012)
Network 35-45,
substations 25, Transformers 3-
prenos towers 25, network 15-
Moldavija Straight- line no
35, SCADA 25, measuring
measurement equipment 9
equipment 13-15
Office buildings
Buildings 80, 50-80,
Crna Gora Straight- line no network 50, construction part
substations 36 of distribucija 20-
80

20
 Network 40, Network 50,
Srbija Straight- line yes
substations 25 substation 40

Turska Straight- line yes - -

In line with
applicable tax Network 10, Network 10,
Ukrajina no
code, usually buildings 20 buildings 2053
straight- line

7. Losses

During the transport of electric power through an električna energija network, power is lost due to
physical and non-physical reasons. Two types of network električna energija losses exist:

 Technical lossesresulting from heating of conductors and transformers during električna

energija prenos and
 Non-technical losses i.e. consumed energy that cannot be billed to an end user. Reasons for
these losses include imprecise or incorrect readings, fraud and human error.

Network operators are responsible for the compensation of losses. They purchase appropriate
quantities of energy in form of a scheduled supply with the required load profile. The costs of network
losses are mostly controllable in a long- run, but not in a short-run (e.g. during the regulatory period).
The way they are included in the dozvoljeni prihod (if included at all) can be different, e.g. as part of
operating costs54 or as separate dozvoljeni prihod category 55 . In any case, the regulator has to ensure
network efficiency, not only by recognizing a certain amount of losses, but also by stimulating network
operators to reduce them.

The Tabela below provides information on thedefinition and criteria applied by the regulators of the
analyzed markets for recognizing losses in the dozvoljeni prihod for električna energija prenos
and distribucija and provides grafika for allowed losses and applicable cijene that are used for
defining the allowed cost.

53
For new incentive based methodology: 0.4-10kV- 30 years, 35-150kV- 40 years, buildings 50 years
54
In case of incentive based regulation the applied efficiency factor then also relates to costs of losses.
55
The maximum value is set for the amount of losses as well as the rule applicable for purchase price.

21
Tabela5Recognition of losses in the dozvoljeni prihod for električna energija prenos and distribucija

Is there a
separate
Costs related to network definition of
Criteria for recognition How is price for allowed losses
losses recognized in AR for technical
of losses in the AR determined?
prenos/distribucija? and non-
technical
losses?
According to the market model
T Actual costs from the
applied, the price for losses for the
yes no energy balance and
period 2009-2013 is equal to the
investment plans
cost for public generation
According to the
D Regulatory Statement for
privatization there was a
study for determining
losses, done by the
Albanija Purchase price for allowed losses is
auditing company, which
determined by the annual tender
determined the level of
yes no organized by DSO in accordance
total technical losses for
with procedures approved by the
the year 2008, which is
regulator
considered as the base
year for determining
losses in the future
periods based on the
scenario losses reduction

T no56 no Not applicable Not applicable

56
Transmission losses are treated as system service and not included in the transmission dozvoljeni prihod

22
 No, but a BIH-FBIH: distribucija
D separate % system analysis, plan for
of allowed reduction of losses
losses is BIH-RS: data on the
defined for structure and condition of
technical and the network and metering BIH-FBIH: generation/procurement
Bosna i commercial devices, structure of price
yes
Hercegovina losses in consumption of active and BIH-RS: generation/procurement
BIH-RS reactive električna price plus prenos charge
energija, as well as data
from the study on losses,
benchmarking and other
available data, historical
data

Benchmark with similar Price for tariff customers-

Hrvatska T&D yes No
networks households, model blue

Historical data, maximum

allowed losses 3% for Resulting from tender organized by
BJR prenos. TSO/DSO i.e. market price
T&D yes No
Makedonija For distribucija DSOs implemented; regulator approves
submit also plan for procedure for tender
reduction of losses.
There is a
definition for
normative
technical Only normative technical
Gruzija T&D yes
losses; losses recognized
commercial
costs not
recognized

23
 In setting the loss
allowance the regulator
takes into account:
1. The outturn level of
actual prenos losses for
the most recent complete
period of 12 successive
months for which accurate
data is available;
2. Any expected loss
reduction that may
reasonably be expected
to be obtained based on Average wholesale energy cost
T yes no
the allowed investment calculated by regulator
plan during the regulatory
period; and
Kosovo* 3. The level of prenos
losses in comparable
prenos systems in
countries elsewhere in
Europe, taking account of
the similarities between
the električna energija
industry in those countries
and that of Kosovo.

Regulator set targets for

reduction of losses
starting from 2012- 3
Average wholesale energy cost
D yes Yes percentage points in first
calculated by regulator
3 years and 2.5
percentage points in the
following 3 years

24
 Yes, as of 26th July 2013 No Only normative technical Price of imported električna energija
Moldavija T losses recognized and are
determined as the
difference between the
amount of električna
energija measured at
points of entry into the
electrical networks of
transport and the amount
of električna energija
measured in points out of
electric transport
networks.The losses
recognized in the
dozvoljeni prihod are
those related to
technological
consumption of električna
energija necessary to
operation of equipment
involved in the
transportation of
električna energija.

25
 According to provisions of
Instruction for calculating
technological
consumption in electrical
networks, approved by
ANRE, based on historical
data.
Commercial losses57: Price of imported električna energija
D yes Yes
methodology provides for plus prenos tariff
the first 2 years of validity
of Methodology a level of
2.0% of the total quantity
of električna energija in
the distribucija networks,
in the next 2 years - 1.5%,
and then - 1.0%
yes No, only Weighted average purchase
Crna Gora T The total losses in the
technical električna energija price
prenos system set as the
losses
difference
recognized.
between the total električna
energija entering the
prenos system and the
električna energija leaving
the prenos system, are
calculated as the average
of realization for the
period of three years
preceding the current one

57
Treated as stranded costs

26
 The Agency sets the
allowed losses in the
distribucija system for each
year of the regulatory
period based on the study
for reduction of losses in
the distribucija system
No, only revisedby an independent
technical eligible institution in Crna
D yes
losses Gora. In the case that a
recognized. DSO does not submit the
study, the allowed losses in
the distribucija system for
each year of the regulatory
period shall be set onthe
level that is not higher than
the level set for the current
year.

Justified električna energija

lost rate in one year set
based on: realized loss rate
in previous years, analysis
of the system, benchmark Weighted average purchase
Srbija yes No
with neighboring električna energija price
prenos/distribucija
systems, loss reduction
plan and measures for its
implementation.
no not not applicable not applicable
Ukrajina T applicable

27
 There is a
definition for The level of normative
normative technological losses
technical determined by the
losses and simulation results based
Not explicitly, but the relevant
non- on network topology,
D costs included in retail not applicable
technical normal mode of the
tariffs/end-user cijene
losses; non- network operation and
technical volumes of distributed
losses are električna energija
not
recognized

28
With the exception of Bosna i Hercegovina and Ukrajina, costs related to network losses
are recognized in the dozvoljeni prihod for prenos in all markets. However, in Bosna i
Hercegovina the losses are treated as system service with an allowed percentage of losses
(1.84%) and an applicable price not part of prenos dozvoljeni prihod calculation. Dozvoljeni
prihods for distribucija include costs related to network losses in all investigated markets.

The definitions of prenos losses do not distinguish between technical and non-technical
(commercial) losses i.e. they are simply calculated as difference between input and output of
energy. In Gruzija and Moldavija there is even a definition of normative (standardized) technical
network losses that per default exclude any non- technical losses. In those cases where more
than normative technical losses are recognized in the dozvoljeni prihod, the criteria used mainly
rely on historical data on losses and benchmarking with other comparable networks.

Forelektrična energija distribucija there is a separate definition of commercial losses in

Kosovo* and Moldavija. In Bosna i Hercegovina there is no definition of commercial losses, but
the regulator of BIH entity Republika Srpska allows certain percentages for commercial losses. In
Ukrajina only the definition of normative (standardized) technical network losses is applied.

When calculating the level of losses related costs in the dozvoljeni prihod, regulators use
different supply or purchase električna energijacijene (including prenos charges for
distribucija losses). Only in BJR Makedonija this price is explicitly market based, i.e. the
TSO/DSO has to organize a tender for purchasing električna energija to cover losses. The
procedure of this tender is approved by the regulator.

Currently allowed percentages of losses in prenos and distribucija network are presented on the
grafik below. Please note that the allowed level of losses in the prenos network in Hrvatska has
not been determined yet.

29
Grafik5Allowed levels of losses in the prenos networks (in %)

Grafik6Allowed weighted average levels of losses in the distribucija networks (in %) 58

The percentages of allowed commercial losses for električna energija distribucija are separately
expressed only in Bosna i Hercegovina- Republika Srpska. Their range is from 2,58% to 3,12%
(the grafik above shows the aggregate level of allowed losses).
58
In some cases weighted average level of losses is not available, but only the range of recognized levels of losses.

30
 8. Deducted revenues

Prenos and distribucija system operators may earn revenues from non-regulated activities
performed by using the same assets already included in RAB, e.g. revenues from congestion or
from reconnection. In order to avoid double earnings from the same assets, the regulators often
deduct such non-regulated revenues from the regulated dozvoljeni prihod. In this context it has to
be noted that deduction of congestion revenues from the regulated dozvoljeni prihod, if not used
for investments aiming to reduce congestion, can serve as appropriate `negative investment
incentive` with a view to promote necessary system upgrades.

The grafik below explains to which extent the regulatorne agencije of investigated markets
deducted some non-regulated revenues from the prenos and distribucija dozvoljeni prihod.

Grafik7Deduction of non- regulated revenues from the regulated dozvoljeni prihod in električna
energija prenos and distribucija

Where non- regulated revenues are deducted from the calculated dozvoljeni prihod for električna
energija prenos, the following mechanisms apply:

 Albanija:
o Prenos: revenues from capacity allocation
o Distribucija: no deduction
 Bosna i Hercegovina:
o Prenos: ITC mechanism revenues, revenues from cross- border prenos capacity
allocation etc.
o Distribucija: revenues that a DSO realizes with the licensed assets, such as the
revenues from the sale of by-products, revenues from activating its own outputs,

31
 revenues from the sale of assets, separated part of the revenue of the period
based on realization of the donated assets and other revenues realized using the
licensed assets included in the regulatory base.
 BJR Makedonija:
o Prenos: revenues from capacity allocation on interconnectors, ITC mechanism
revenues, all compensations for network connectionsrelated to maintenance
operationof the connection assets and all other revenues that do not arise from
the use of prenos grid.
o Distribucija: revenues from non- regulated activities earned by using regulated
assets, e.g. revenues from reconnection.
 Kosovo*: currently there are no revenues deducted, but there is a non-exhaustive lista
»excluded services« for which the TSO/MO and DSO levy a charge and the revenues
resulting from them are then deducted from transmssion/distribucija dozvoljeni prihod:the
carrying out of works the cost of which is required to be reimbursed by a user of the
system or a third party,relocation of any electric line or electrical plant, movement of any
electric line, electrical plant, or metering equipment that forms part of the
prenos/distribucija system to accommodate the extension, redesign, or redevelopment of
any premises on which the asset in question is located or to which it is connected, the
cost of which is to be borne by a user of the system or a party requesting the relocation,
revision of electric lines and electrical plant to the extent required by any user of the
prenos/distribucija system to provide a higher degree of security than is required
TSO’s/DSO's license (Prenos System Security and Planning Standards), provision of any
metering service that is not already remunerated under any other charge in respect of an
excluded service.
 Crna Gora59 (prenos): revenues from telecommunications services
 Srbija:
o Prenos: revenues arising from the activities on električna energija market
organisation and management60, revenues arising from the mechanisms
for električna energija transit compensation, revenues earned through
allocating interconnection capacities, revenues collected by balancing
activities61, revenues arising from the sales of side-products and
services, revenues from activation of own goods and outputs, revenues
collected by selling regulated assets, revenues arising from the
guarantee of origin, revenues arising from damage compensation,

59
For distribution there are no deducted revenues.
60
Revenues earned from organizing and managing electricity market
61
Having in mind that the TSO also performs the activities of market operation and in order to provide that it remains
cost- neutral regarding costs and revenues from balancing (done on market), the regulator includes planned balancing
related costs as part of operating costs in the dozvoljeni prihod, but also deducts the same amount as part of other
revenues. Any differences between planned and realized balancing costs/revenues are then added or deducted from the
dozvoljeni prihod of the next year, as part of correction element.

32
 revenues arising from električna energija suspension and other
revenues.
o Distribucija: revenues arising from the sales of side-products and
services, revenues from activation of own goods and outputs, revenues
collected by selling regulated assets, revenues arising from damage
compensation, revenues arising from električna energija delivery
suspension and other revenues.

9. Quantities

Once the dozvoljeni prihod is calculated, the quantity of sold products needs to be established for
the determination of actual the tariff. Overestimated or underestimated quantities may
substantially influence the level of tariffs. This is the reason why most of the regulators revise and
finally approve the level of quantities to be used for determination of tariffs. In order to be
transparent when calculating or approving tariffs, regulators should establish and publish criteria
for revising or approving these quantities.

The Tabela below provides an overview of the criteria implemented for revision and determination
of quantities used for calculation of prenos and distribucija tariffs.

Tabela6Sources of quantities used for električna energijaprenos and distribucija tariff calculation

Sources of quantities used for Sources of quantities used

prenos tariff calculation for distribucija tariff
calculation

Energy balance for the next Quantities proposed by

Albanija year prepared by the TSO the DSO and controlled
by the regulator to avoid
discrepancies with the
quantities reported by
other relevant market
participants
Energy balance for the next BIH-FBIH: DSO’s
Bosna i Hercegovina year prepared by the ISO planned quantities that
are part of energy
balance harmonized with
ISO;
BIH-RS: DSO’s planned
quantities; regulator has
the right to check if in line
with balancing rules,
optimal use of capacity
and energy balance and
to modify, if needed.

33
 Data from TSO Data from DSO
Hrvatska

Energy balance adopted by the Energy balance adopted

BJR Makedonija Government, TSO’s planned
quantities and historical data
Gruzija Energy balance approved by
the ministry based on actual
data of the previous year
Yearly energy balance
Kosovo*
approved by the ministry
Moldavija Contract between TSO and
suppliers
Energy balance adopted by the
Crna Gora
Government62
Srbija Planned quantities proposed by
TSO, subject to AERS’ analysis
Ukrajina
Quarterly forecast based on
energy balance approved by
the relevant ministry
by the Government,
DSO’s planned quantities
and historical data
Energy balance approved
by the ministry based on
actual data of the
previous year
Yearly energy balance
approved by the ministry
Procurement contract
between DSO and
suppliers
Energy balance adopted
by the Government
Planned quantities
proposed by DSO,
subject to AERS’ analysis
The volume of električna
energija distributed on
the appropriate voltage
level includes volumes of
transformation of
električna energija from
high voltage to a lower
level, volumes of
električna energija
supplied to customers for
this voltage level,
regardless of the
connection point of
customers to networks.
The volume is based on
the energy balance but
regulator considers also
actual volumes of the
previous year

From the information presented in the Tabela above it can be concluded that in the majority of
cases regulators prefer having a concrete and provable source of data for quantities used
for tariff calculation, such as energy balance or concluded contracts. However, in most of
the markets the regulators also have the right to change the amounts of volume taken over from
energy balances or other sources, for the purpose of tariff calculation. The
exceptionisMoldavija,where the regulator uses quantities from the contracts for calculating tariffs
62
In general, the regulator is not allowed to change the energy balance approved by the Government, but in 2011 the
energy balance was changed in order to include also the level of distribution losses allowed by the regulator.

34
and these quantities are then revised in the scope of correction of the dozvoljeni prihod for the
next year (see Chapter 10 on correction).

10. Correction

After expiry of the regulatory period regulators have the opportunity to calculate the difference
between the allowed and actually earned revenue. These two values are always different due to
the difference between planned and actual quantities, but also because of different planned and
realized costs. The amount of over/under-recovery is then to be compensated in the next
regulatory period.

The methodologies for the calculation of prenos and distribucija dozvoljeni prihods and tariffs in
the analyzed markets envisage calculation of correction factor based on both realized quantities
and costs. The exceptions are Hrvatska and Ukrajina for both prenos and distribucija and Turska
for distribucija- the regulators calculate correction based only on quantities. Specific approaches
are applied in BJR Makedonija and Kosovo*, where the regulator multiplies the difference
between allowed and realized revenue by a predefined interest rate 63. In Moldavija the differences
between planed and realized values of relevant elements of the dozvoljeni prihod, positive or
negative,are discounted at the rate of return and then included in the dozvoljeni prihod for the
next period.

11. Ancillary services

Ancillary services are services necessary for safe, reliable and sTabela operation of the network.
The Tabela below shows to which extent costs of these services are included in the dozvoljeni
prihod for prenos.

Tabela7Costs of ancillary services recognized in the dozvoljeni prihod for električna energija
prenos

Costs of ancillary services

Types of ancillary services
included in dozvoljeni
included in the dozvoljeni prihod
prihod?

Albanija yes all

63
In FYR of Macedonia this is the average passive interest rate published by the National Bank. In Kosovo* it is
determined as the sum of EURIBOR rate and S, where the S reflects the premium payable by the licensee for short-term
loans above the EURIBOR rate.

35
Bosna i Hercegovina no64 n.a.
- secondary and tertiary
Hrvatska regulation,
- reactive energy production,
- capability for island operation
of a part of the power system,
yes - capability of a power plant to
operate without any external
električna energija supply,
- capability of a power plant for
black start
Costs of frequency regulation
BJR Makedonija service and exchange power
(primary, secondary and tertiary
yes regulation), voltage regulation
and the share in the
establishment of the power
system (black start).

Kosovo* Ancillary services currently not

yes
contracted

Moldavija no65 n.a.

- The primary control;
Crna Gora - Secondary regulation;
- Tertiary regulation;
- Voltage regulation - reactive
yes power; - without reimbursement
- Supply of reactive power and
- Ability to restart the power
system from black start -
without reimbursement
Costs of frequency regulation
Srbija service and exchange power
(primary, secondary and tertiary
yes regulation), voltage regulation
and the share in the
establishment of the power
system (black start).
no (reserves are
Ukrajina procured by market
operator and relevant
not applicable
costs are included in the
wholesale price of
električna energija)

64
According to the existing model of providing ancillary services in BIH, the relevant financial transactions take place
outside the system operator.
65
These costs are covered by the income from ancillary services rendered by operator at tariffs approved by the
methodology developed by the regulator (Nr.245 from 02.05.2007)

36
37
Regulation of električna energija supply

According to the Energetska zajednicaacquiscommunautaire Contracting Parties may impose on energy

companies, in the general economic interest, public service obligations which may be related, among other,
to the price of supply. Such obligations need to be clearly defined, transparent, non-discriminatory,
verifiable and shall guarantee equality of access for električna energija undertakings to consumers 66.
Furthermore, all household customers and small enterprises, as defined by the acquis, are entitled to enjoy
universal service, i.e. is the right to be supplied with električna energija of a specified quality within their
territory at reasonable, easily and clearly comparable, transparent and non- discriminatory cijene67. Against
this background, in many countries regulated end-user cijene for both households and non-household
customers still exist68. It has to be noted that, in case regulated energy cijene are set at levels that do not
allow recovery of costs, they tend to establish a barrier for the development of competition and effective
market opening.

When regulating end-user cijene, several components are added to the network charges:

 commodity price i.e. cost of providing električna energija,

 supply service costs,
 taxes, levies, regulatory fees, charge for market operator’s services, support for
renewables etc.

Under certain circumstances final električna energijacijene also include components such as bad debts or
non- collection rate.

The Tabela below explains how these elements are included in the regulated električna energija end-user
cijene. Please note that the costs of prenos and distribucija charged through end- user električna energija
price by the supplier are then transferred to the operators of prenos and distribucija system, in line with
applicable tariff systems.

Tabela8Structure of dozvoljeni prihod for električna energija supply

Structure of maximally dozvoljeni prihod (MAR) for

regulated električna energija supply
MARt=costs of električna energija purchase+prenos
Albanija costs+distribucija costs+ supply service costs+bad debt

66
Art. 3(2) of the Electricity Directive
67
Art.3(3) of the Electricity Directive
68
The Energetska zajednica Secretariat assessed the existing approaches and their compliance with the Energetska
zajednica acquis (http://www.energy-
community.org/portal/page/portal/ENC_HOME/AREAS_OF_WORK/ELECTRICITY/Regulated_prices). For the EU market
see ACER/CEER, Annual Report on the Results of Monitoring the Internal Electricity and Gas Markets in 2011, chapter
2.2.1 (http://www.energy-regulators.eu/portal/page/portal/EER_HOME/EER_PUBLICATIONS/CEER_PAPERS/Cross-
Sectoral/2012/ACERCEER%20Market%20Monitoring%20Report.pdf)

38
 allowance
MARt=costs of električna energija purchase+prenos
Bosna i Hercegovina costs+distribucija costs+ supply service costs
MARt = costs of električna energija purchase + supply
Hrvatska69 service costs + prenos costs + distribucija costs
MARt=Ot + Dt + CPTt + Et + TNUt + MOt + DNUt + Mt +
BJR Makedonija LCt -Kt
Where:
Ot are operating costs in year t
Dt is depreciation in year t
CPTt are costs pass- through in year t
Et are costs for električna energija purchase
TNUt are costs for prenos in year t
MOt are costs for električna energija market operator in year
t
DNUt are costs for distribucija in year t
Mt is margin for activity električna energija supply of tariff
consumers
LCt are recognized bad debts in year t
Kt is correction element in year t
MARt = (RETRt + WCLCt + WHPCt + PSTCt - NTFRt +
Kosovo* KREVt) / (1-BDTAt)
Where:
RETRt is allowed retail costs in year t, which is set at
Annual Updates
WCLCt is allowed working capital costs in year t
WHPCt is allowed wholesale power costs in year t
PSTCt is Pass-Through Costs in year t
NTFRt is non-tariff revenues in year t
KREVt is the revenue correction factor in year t

BDTAt is the bad debt allowance in year t, set as a

percentage (%)
MARt= costs of električna energija purchase+ prenos costs+
Moldavija distribucija costs+ supply service costs
MARt = the operating costs for the regulated activity (OCt) +
Crna Gora depreciation (Dt) + return on assets (RAt)
MARt = OPEXt + Dt + NEEt + TUoSt + DUoSt + ARCR t +
Srbija CFt
Where:
t = regulatory period,
OPEXt = operating expenditure in period t
Dt = depreciation costs in period t
NEEt = costs of električna energija procurement from
wholesale supplier including also associated costs, in period
t
TUoSt = prenos use of system charges in period t

69
Applicable only to household customers. Customers that can chosses their suppliers pay network charges separately
from electricity and supply costs.

39
 DUoSt = distribucija use of system charges in period t
Pt = profit of the public supplier in period t
CFt = correction factor in period t
Operating costs: material costs, labor costs, social
Ukrajina expenditures, depreciation, other operating expenses;

The costs from profit for: dividends/base amount;

development of production / production investments, income
tax, other purposes.

For new incentive regulation methodology:

НДnt = ОКВn t + ОНВnt + Аnt + Пnt + ППnt, тис. грн.,

Where:
ОКВn - projected controlled operating costs for supply of
električna energija at regulated tariff in year t,
ОНВnt - projected uncontrolled operating costs for supply of
električna energija at regulated tariff in year t,
Аnt – projected depreciation in year t,
Пnt - projected return on the regulatory asset base at year t
after tax,
ППn t - projected income tax in the year t

In case the price of commodity changes, this influences the cost of providing that commodity to
the customers by the suppliers. If the supply is regulated, the regulatory authority has to define a
mechanism to take these changes into account when determining the end- user cijene. This
mechanism should describe the cases, when the change of commodity cijene will result in a
change of final price as well as whether this will be treated as pass-through cost 70 or some
limitation of cost level is introduced.

Tabela9Treatment of change in commodity cijene in the final električna energija price regulation

Treatment of change in commodity cijene in the final price

regulation

Dozvoljeni prihod for retail public supply updated annually

Albanija based on change in wholesale električna energija costs.
BIH-FBIH: no automatic mechanism, the final cijene are
Bosna i Hercegovina changed by new tariff proceeding i.e. on the request of a
supplier
no automatic mechanism, the final cijene are changed by
Hrvatska request of energy suppliers based on tariff system for
električna energija generation
no automatic mechanism, the final cijene are changed by
BJR Makedonija new tariff proceeding (taken into account every year)

70
Whole amount of cost change will be carried over to the customers.

40
 maximal dozvoljeni prihod for supply is updated annually
Kosovo* taking into consideration also wholesale električna energija
costs (see Tabela 8)
The change in commodity price is treated as pass-through
Moldavija cost and the final price is changes if this commodity- related
cost influences the total level of allowed costs by more than
1%
The change in commodity cijene is taken into account when
Crna Gora calculating correction element for the regulatory year (i.e.
correction calculated every year during the regulatory
period)
no automatic mechanism, but suppliers may submit to the
Srbija regulator price proposals after any change in električna
energija purchase price
Dozvoljeni prihod and cijene are revised quarterly based on
Turska actual costs and cijene
According to the procedure of retail električna energija tariff
Ukrajina calculation for customers (except households) licensees
that the retail price for električna energija supplied at
regulated tariff, adopted by NERC, is calculated monthly.
The price of električna energija as a commodity is taken as
estimated average purchase price of električna energija in
the month for which retail cijene are set and includes
projected wholesale market cijene for this month (approved
by NERC) as well as the price at which the licensee in
accordance with the contract purchased električna energija
directly from the producer, or the tariff for električna energija
production by the licensee in own power station in the billing
month, and deviation of paying for purchased električna
energija, taking into account the adjustments for previous
periods.

Changes in the price of električna energija as a commodity

affect the level of the estimated rate for the households, but
as tariffs for households are subsidized, it does not
automatically change the actual end-user price for
households.
For other consumers, retail tariffs are calculated according to
the formula provided in the license conditions and rules of the
supply at regulated tariffs, which includes the wholesale
market price, the tariff for distribucija, supply and take into
account normative technological losses in networks. In the
case of monthly changes of wholesale električna
energijacijene, end- user price for consumers changes
accordingly.

From the Tabela above it can be concluded that change in commodity cijene result in
changes in final cijene mostly on the request of regulated suppliers and, generally, the
whole amount of cost change is carried over to the customers. However, the change of

41
regulated end-user cijene on the ground of, among other, input commodity cijene is assessed
every year in BJR Makedonija, Kosovo* and Albanija, quarterly in Turska and every month in
Ukrajina for customers other than households. In Moldavija, this change is performed in case the
pass-through costs, including commodity-related cost influence, exceed 1% of the total allowed
costs.

Supply service costs, such as costs for billing, contract administration or customer service/call
centers, are always included in the dozvoljeni prihod for električna energija supply (see Tabela 8
above). Sometimes also a retail margin/profit is allowed in the regulated revenue of suppliers(e.g.
in BJR Makedonija, Crna Gora, Srbija and Ukrajina).

Having in mind that a supplier is the entity delivering final product to the customers and therefore
collecting revenues, it is reasonable to consider whether the dozvoljeni prihod for supply should
include an allowance for bad debt or a non-collection rate. The difference between these two
terms only develops from the regulatory practice i.e. accounting term used is bad debt
allowance71. However, regulators normally do not simply take over the amount of companies´ bad
debt allowance into the dozvoljeni prihod, but define criteria and formulas for calculating the
allowed expense. Before approving a bad debt allowance, the regulatorne agencije typically ask
companies to prove that they employed all possible measures to collect their receivables and also
take into consideration whether the costs for collecting debt are bigger than the losses caused by
writing them off.

The grafik below shows which regulatorne agencije include bad debt allowance, i.e. non-
collection rate, into the dozvoljeni prihod for električna energija supply.

71
Bad debts are accounts receivable that will likely remain uncollectable and will be written off. Bad debts appear as an
expense on the company's income statement, thus reducing net income. In general, companiesmake an estimate of bad
debt expenses that might be incurred in the current time period based on past records as part of the process of estimating
earnings. Most companies make a bad debt allowance since it is unlikely that all of their debtors will pay them in full
(www.investorwords.com)

42
Grafik8Treatment of bad debt for the električna energija supply

The maximally allowed percentages of bad debt included in the regulated revenues of
suppliers are:

 14.85 starting form 2012 and 1% reduction per year by 2014 % in Albanija
 1% in Bosna i Hercegovina
 3.5% in BJR Makedonija
 5% for 3 years starting from 2012 and 4% for the next 3 years in Kosovo* and

Finally, the regulatorne agencije of the analyzed markets were asked whether some other
charges or levies are explicitly included in the dozvoljeni prihod for električna energija supply, in
particular regulatory fees and-or support for renewable energy. While all justified costs borne by
the regulated suppliers are included in the overall amount of allowed costs and the final tariff, i.e.
they are always treated as pass- through costs), the question aimed to identify whether these
costs are transparent to the final customers. The Tabelas below summarize the responses
received.

43
Tabela10Financing of regulatory authority and final tariffs and cijene

Are the costs for financing the regulatory authority included in

tariff? If yes, in which tariff(s)?

Yes, implicitly72, in tariffs for all regulated activities

Albanija

Yes, implicitly, in tariffs for all regulated activities

Bosna i Hercegovina

Yes, implicitly, in tariffs for all regulated activities (0,05% of

Hrvatska revenues of all licensed companies plus some
administrative charges)
Yes, implicitly, in tariffs for all regulated activities (may not
BJR Makedonija exceed 0,1% of revenues of all licensed companies, for
2013- 0.037%)
Yes, implicitly, in tariffs for all regulated activities
Gruzija

Yes, implicitly, in tariffs for all regulated activities (may not

Kosovo* exceed 2% of annual revenue)
Yes, implicitly, in tariffs for prenos, distribucija and supply
Moldavija

Yes, implicitly, in tariffs for all regulated activities73

Crna Gora

Yes, implicitly, in the prenos tariff.

Srbija Regulatory charge is part of operational costs of the
električna energija prenos operator. This regulatory charge
is calculated according to the following formula:

RCt = 0,9% * (AOPEXt + Dt + WACCt * RABt)

where:
AOPEXt - adjusted operating cost calculated before inclusion
of purchasing value of električna energija for balancing and
regulatory charge in period t
Yes, implicitly, in the prenos tariff
Turska

No, regulatory authority is financed through the state budget

Ukrajina

72
Throughout the table `implicitly` indicates that the costs are not separately displayed to customers.
73
The regulator is financed through license fees- for issuing and yearly for usage. The fees for issuing are expressed in
Euro and yearly fees in Euro cent per MW and MWh.

44
Tabela11Inclusion of support for električna energija from renewable sources in električna energija
tariff(s)

Is RES support allowance included in tariff? If yes, in which

tariff(s)?

Yes, in the tariff for wholesale public supply 74

Albanija

BIH-RS: yes, 0,0009 BAM/kWh for 2013, paid by all final

Bosna i Hercegovina customers and expressed separately on električna energija
bill
BIH-FBIH: yes, in supply tariff, will be visible on the bill when
new scheme is applied
Yes, 0,05kn/kWh for 2012, paid by all final customers and
Hrvatska displayed separately on električna energija bill
Yes, in the tariff for organization and operation of the
BJR Makedonija market-0.049€/MWh, paid by all final customers (market
operator buys električna energija from preferential
generators and pays feed-in tariff); not visible on the bill
No
Gruzija

Yes, in supply tariff, not visible on the električna energija bill

Kosovo*

Yes, in supply tariff, not visible on the električna energija bill

Moldavija

No
Crna Gora

No
Srbija

Yes, in supply tariff

Turska

Yes, costs of connection of RES generation to the network-

Ukrajina in the distribucija/prenos tariff- not visible on the bill;
Feed in tariff is included in the wholesale price of električna
energija- the share of RES in wholesale price is visible on
the bill on the annual basis.

74
Until 2013 the RES support/feed in tariff is calculated pursuant to the methodology for calculating the price of new HPP
up to 15 MW which has taken in consideration the Law on Concessions. The calculating formula of this methodology is
based on the price of the imported electricity by Wholesale Public Supplier of the previous year plus 10% bonus. Starting
from 2014 the regulator must apply the Law No. 138 2:05.2013 on RES which defines the calculation formula applicable
for each renewable resource technology while elements of the formula will be determined by the regulator every three
years.

45
 12. Univerzalne usluge

The previously described process of end-user price regulation usually refers to universal service
provision75. This universal service may be provided by a supplier of last resort. However, the
Električna energija Directive neither provides definition of a supplier of last resort nor defines the
circumstances under which it should be applied. In the light of this, the European Regulators
Group for Električna energija and Gas (ERGEG) in 2009 investigated the use of this term in the
energy sectors of EU countries76. The ERGEG survey also explored whether the similar term of a
default supplier also exists and in which cases it is used. The ERGEG analysis showed that the
majority of EU countries have a definition of the term supplier of last resort but less than half of
the EU Member States use a definition for the term default supplier. However, the assessment
also showed that it is not unusual for the supplier of last resort to also act as default supplier and
vice versa. A supplier of last resort is mostly activated when a (chosen or default) supplier goes
bankrupt, while default suppliers usually step in when a customer is inactive on the market, i.e.
did not choose a supplier.

In the Energetska zajednica Contracting Parties and other analyzed markets the application of
default suppliers and/or suppliers of last resort is described in the Tabela below.

75
The general right of households and small enterprises to be supplied with electricity of a specified quality at reasonable,
easily and clearly comparable, transparent and non- discriminatory prices )Electricity Directive).
76
Status review of the definitions of vulnerable customer, default supplier and supplier of last resort, ERGEG, July 2009,
available at http://www.energy-
regulators.eu/portal/page/portal/EER_HOME/EER_PUBLICATIONS/CEER_PAPERS/Customers/Tab/E09-CEM-26-
04_StatusReview_16-Jul-09.pdf

46
Tabela12Application of default supplier and supplier of last resort as universal service in
električna energija supply

Definition of Definition of End- user Is there a special Is there a special Share

default supplier of customers tariff methodology tariff methodology house
supplier (DS) last resort eligible for being for DS? for SLR? suppli
(SLR) supplied by defaul
DS/SLR total h

no yes all no no
Albanija

yes yes all Yes yes

Bosna i
Hercegovina

yes, for yes, for all Households for Yes yes

Hrvatska households customers DS, all for SLR
no yes Households yes yes
BJR and small
Makedonija enterprises
no yes all no no
Kosovo*

no yes all not applicable yes

Moldavija

no yes all no no
Crna Gora

no yes Households Yes no

Srbija and small
enterprises
no yes all Not applicable -
Turska

no77 no all no no
Ukrajina

77
Default supplier and supplier of last resort in Ukrainian legislation are not defined as such.But, according to the
Electricity Law and Rules and Conditions of business activity for electricity supply at regulated tariff № 15/1 of 13.06.1996,
adopted by NERC, licensee has no right to refuse to conclude an electricity supply agreement with customer which is
located in designated area, and must purchase electricity on the wholesale electricity market of Ukrajina to supply
electricity to any consumer located in designated area based on electricity supply contract.

47
Tabela13Cases in which default supplier or supplier of last resort is applicable

Customer Customer
Supplier goes Customer does not
non- cannot find a Expired contract
bankrupt choose a supplier
payment supplier

Albanija SLR SLR SLR

Bosna i
SLR SLR DS DS
Hercegovina

In Hr
Hrvatska univ
sup
appli
hous

house
appl
non
custo
mom
O
distrib
is D

BJR Makedonija SLR

Kosovo* SLR SLR SLR

Moldavija SLR SLR

If fin
Crna Gora loses
SLR
reas
cann

Srbija SLR SLR SLR

Turska SLR SLR SLR

Ukrajina not applicable

48
In order to calculate the dozvoljeni prihod for the provision of universal service the regulators
sometimes define how the commodity sold by retailers is to be procured. There are several
possibilities, such as procurement at power exchange, by bilateral contracts, by organizing
auctions, or some combination of mentioned methods. In the great majority of the analyzed
markets bilateral contracts are used for procurement of energy for universal service provision.
The regulatorne agencije always have insight in those contracts. Only in BJR Makedonija 78,
Crna Gora and Turska79 the energy is procured by using a combination of methods 80. In
Ukrajina, the energy is procured on the wholesale električna energija market (single buyer
model) as well as by contracts with the producers which are not obliged to sell električna
energija to the wholesale market.

Finally, the provision of universal service or fulfillment of public service obligation in the sense
of implementing regulation of end-user cijene is in many cases limited in time. In Albanija,
Hrvatska, Crna Gora, Turska and Ukrajina the implementation of regulated cijene for
households and small enterprises has no time limitation. In all other examined markets the
final deadline for abandoning regulated end-user cijene for households is 1 st January 2015
and for small enterprises in some cases even earlier (please sees the grafik below for
details).

Grafik9 Vremenski raspored za ukidanje regulisane cijene za domaćinstva i mala preduzeća 81

REZIME REZULTATA
78
The energy is procured from the electricity generator whose license also includes the obligation on public service
provision under prices approved by the regulator as well as from the liberalized market under rules approved also by
the regulator (tendering procedure).
79
15% power exchange, 80% bilateral contracts, 5% other
80
In Albania retail public supplier buys electricity from wholesale public supply for tariff customers, only the electricity
for covering losses is bought on the market.
81
In FYR of Macedonia the deadline for small enterprises is 1st April 2014.

49
Regulacija energetskog sektora mrežne industrije prati slične principe I kriterijume za
određivanje mrežnih tarifa i, gdje je to moguće, cijena za krajnje korisnike na svim
analiziranim tržištima. Glavni zaključak ovog izvještaja se sumira na sljedeći način:

1. REGULACIJA MREŽE

1. Najčešće primjenjivani mehanizmi kontrole cijene implementirani u sektoru za električnu

energiju i gas su regulacija “troškovi-plus (stopa povrata) ili regulacija maksimalnog
prihoda; regulacija maksimalne cijene se koristi u veoma ograničenom broju slučajeva.
2. Za sve tipove regulacije tarifa utvrđuje se dozvoljeni prihod. Ovaj izvještaj analizira
kriterijume primijenjene za određivanje elemenata dozvoljenog prihoda, naime
opravdane operativne i troškove održavanja, kapitalne troškove, naknade za gubitke na
mreži, kao i korektivni faktor koji upućuje na varijacije između predviđenih i stvarnih
vrijednosti. Osim toga, ovaj izvještaj je istraživao koji se principi primjenjuju za regulaciju
cijena za kranje korisnike gasa i električne energije.
3. Da bi se olakšao proces obračuna dozvoljenog prihoda neke regulatorne agencije traže od
regulisanih preduzeća da pripreme i dostave odvojene regulisane račune koji se u
određenoj mjeri razlikuju od nacionalnih zakonom propisanih računovodstvenih smjenica.
Takva pravila za regulatorno računovodstvo se koriste u Albaniji, Bosni i Hercegovini,
Hrvatskoj, Kosovu*, Moldaviji, Turskoj (za električnu energiju) i Ukrajini (za gas).
4. Kod priznavanja operativnih i troškova održavanja u dozvoljenom prihodu regulisanog
preduzeća, regulatorne agencije treba da osiguraju održavanje odgovoarajućeg nivoa
usluga, ali isto tako i izbjegavanje prekomjernih troškova uključenih u tarifu.Odstupajući od
ovog principa, regulatori u Bosni i Hercegovini (sa izuzetkom njenog entiteta Republike
Srpske), Hrvatskoj i Kosovu* za električnu energiju i u Gruziji i Turskoj za električnu
energiju i gas uključuju sve operativne i troškove održavanja iz zakonom propisanog
računovodstva u dozvoljenom prihodu.Na svim ostalim tržištima neke kategorije troškova
su unaprijed definisane kao opravdani ili neopravdani troškovi koji se mogu ili ne mogu
kontrolisati ( i time se mogu prenijeti) i obično su predmet procjene regulatora. U BJR
Makedoniji tarifne metodologije uključuju čak i ograničenja za izvjesne kategorije troškova
kao što su troškovi održavanja i rada. U slučaju podsticajne regulacije primjenjuje se
faktor efikasnosti. Međutim, na analiziranim tržištima koja primjenjuju podsticajnu
regulaciju ovaj faktor i dalje veoma često iznosi 0% (Albanija i Turska za električnu
energiju, Hrvatska i BJR Makedonija za gas), uglavnom zbog nedostatka relevantnog
iskustva. Na nekim tržištima faktori efikasnosti su definisani: 4% na Kosovu (električna
energija), 2% u Moldaviji (električna energija i gas), 0.5 CPI u Crnoj Gori (električna
energija).
5. Povrat na sredstva se tipično obračunava kao proizvod regulatorne osnove imovine I
stope povrata na gotovo svim ispitivanim tržištima. Izuzetak je Ukrajina, u kojoj se obračun
dozvoljenog prihoda vrši uzimanjem u obzir razumnog nivoa troškova I projektovanog
profita, koji nije određen kao povrat na angažovani kapital.

50
6. Imajući u vidu značajan uticaj vrijednosti regulatorne osnove imovine na povrat na
sredstva i stoga na krajnje tarife, regulatorne agencije u nekim zemljama imaju pravo da
ponovo procijene imovinu za potrebe određivanja tarife (Albanija, Bosna i Hercegovina za
distribuciju električne energije i gasa, BJR Makedonija, Gruzija, Kosovo*, Crna Gora,
Turska). Međutim, ova prava ne sprovode svi regulatori.
- Na gotovo svim analiziranim tržištima regulatorne agencije odobravaju ex- ante
investicione planove i nadgledaju njihovu primjenu. Realizacija investicionih
planova utiče na obim regulatorne osnove imovine u mjeri u kojoj dozvoljeni prihod
uključuje neke investicije unaprijed, što je slučaj u Crnoj Gori i BJR Makedoniji, kao
način podsticanja investicija, a u Bosni i Hercegovini- Republika Srpska i Srbiji gdje
se priznaje samo dio investicija koje će otpočeti u regulatornom periodu.
- Neka druga imovina se takođe razmatra kod donošenja odluke o regulatornoj osnovi
imovine, kao što su nematerijalna ulaganja (priznata u odobrenom prihodu od stane
regulatorne agencije Albanije- za distribuciju električne energije, Bosne i Hercegovine,
Gruzije, Crne Gore, Srbije, Hrvatske- za gas i Turske- za prenos gasa) i radni kapital
(priznat u dozvoljenom prihodu za električnu energiju od strane regulatorne agencije
Albanije, Bosne i Hercegovine, Hrvatske i Crne Gore; za gas samo u Bosni i
Hercegovini- Republika Srpska).
- Kapitalni doprinosi, kao što su direktna plaćanja od strane korisnika imovine ili
različiti grantovi od strane vlada ili drugih institucija, su isključeni iz regulatorne
osnove imovine na svim analiziranim tržištima, u cilju omogućavanja povrata na
sredstva kojeg ne finansiraju regulisane kompanije. Međutim, ponekad je dozvoljena
amortizacija takve imovine.
- Na kraju, regulatorna osnova imovine može da se koriguje godišnje u slučaju
podsticajne regulacije; to je slučaj u Moldaviji (za potrebe uključivanja otpočetih
investicija) i u Crnoj Gori (korekcije za investicije realizovane ispod 50% unaprijed
odobrene vrijednosti). U Hrvatskoj, korekcija regulatorne osnove imovine na godišnjoj
osnovi može da se primijeni samo u izuzetnim slučajevima.
7. Ponderisani prosjek troška kapitala, kao uobičajeni metod koji se koristi za obračun stope
povrata u regulisanim energetskim preduzećima se primjenjuje na svim analiziranim
tržištima. Rezultirajući nivoi stope povrata u sektoru za električnu energiju rangiraju od
0,67% u Bosni i Hercegovini do 8,95% u Moldaviji za prenos i od 3,50% u Bosni i
Hercegovina do 14,12% u Moldaviji za distribuciju električne energije. U sektoru za gas,
ove vrijednosti su ponovo najniže u Bosni i Hercegovini (1,8% za prenos, 0% i 6% za dvije
distributivne kompanije) i najviše u Moldaviji (12,23% i za prenos i za distribuciju).
8. Kod obračuna amortizacije, regulatorne agencije analiziranih tržišta uglavnom koriste
pravolinijsku amortizaciju. U nekim slučajevima one određuju i vijek trajanja imovine koja
će se koristiti za obračun dozvoljenog prihoda; u drugim slučajevima se primjenjuju
uobičajena računovodstvena pravila.
9. Definicija i kriterijumi za priznavanje troškova gubitaka u dozvoljenom prihodu svih
regulisanih aktivnosti se ne razlikuju značajno između analiziranih tržišta.
- izuzetno, troškovi za nadoknađivanje gubitaka nijesu uključeni u dozvoljeni prihod za
prenos električne energije u Bosni i Hercegovini i u Ukrajini.

51
 - Odvojena definicija komercijalnih gubitaka postoji samo u Moldaviji za električnu
energiju. Međutim, u Bosni i Hercegovini- Republici Srpskoj odvojeni procenat
komercijalnih gubitaka se priznaje u dozvoljenom prihodu za distribuciju električne
energije.
- Kod donošenja odluke o nivou gubitaka dozvoljenih u regulisanom prihodu, regulatori
na istraživanim tržištima obično analiziraju nivo realizovanih gubitaka u prethodnim
godinama i planove za njihovo smanjenje, kao i karakteristike mreže. Da bi se
obračunao nivo relevantnih troškova, regulatori treba da definišu i cijenu električne
energije i gasa korišćenih za vrednovanje gubitaka a to je obično nabavna cijena
energije (u BJR Makedoniji se primjenjuje tržišna cijena za gubitke električne
energije). Trenutno dozvoljeni nivoi gubitaka u sektoru za električnu energiju kreću se
u opsegu od 0,86% u Gruziji (samo za jednog OPS, za ostale 3,5%) do 3,66% u
Crnoj Gori, za prenos i od 8% u Hrvatskoj do 27,40% na Kosovu* za distribuciju. U
sektoru za gas nivoi priznatih gubitaka su od 0,03% u Srbiji do 5% u Gruziji za prenos
i od 0,7% u BJR Makedoniji do 5,23% u Moldaviji za distribuciju.
10.Kada se dozvoljeni prihod za regulisane kompanije obračuna uključivanjem svih
opravdanih troškova, neke regulatorne agencije oduzimaju prihode od neregulisanih
aktivnosti (p.r. zagušenje ili ponovno priključenje),u cilju izbjegavanja dvostruke zarade iz
iste imovine. U sektoru za električnu energiju to je slučaj u većini zemalja (ali ne u
Hrvatskoj, Gruziji i Moldaviji) a u sektoru za gas u Hrvatskoj, Gruziji i Srbiji.
11. Da bi obračunali tarife, regulatori treba da utvrde obime energije koja će se koristiti u
relevantnom procesu. Na većem broju analiziranih tržšta regulatori preferiraju konkretne i
dokazive izvore podataka za količine korišćenje za obračun tarife, kao što su energetski
bilans ili obraunati ugovori. Međutim, na većini tržišta regulatori imaju takođe i pravo
promjene prijavljenih obima, posebno da bi se uzele u obzir realne tržišne transakcije.
12.Po isteku regulatornog perioda regulatorne agencije obračunavaju razliku između
odobrenog i stvarno zarađenog pihoda a iznos rezultirajućeg prekomjernog ili
podcijenjenog povrata se nakon toga nadoknađuje u narednom regulatornom periodu.
Regulatorne agencije analiziranih tržišta uglavnom izračunavaju faktor korekcije koji se
zasniva na obimima trnsportovane energije i realizovanih troškova.

2. REGULACIJA CIJENE ENERGIJE

Pored regulacije prirodnih monopola t.j. prenosa i distribucije energije, na svim analiziranim
tržištima i dalje postoje regulisane cijene za krajnjeg korisnika za potrošače kategorije
domaćinstva i ostale potrošače. Izuzetak je Hrvatska gdje se regulisane cijene primjenjuju
samo za domaćinstva. Dozvoljeni prihod za regulisano snabdijevanje energijom uključuje
troškove prenosa i distribucije (koje naplaćuju snabdjevači, ali koji se kasnije prenose na
relevantne operatore sistema u skladu sa važećim tarifnim sistemima), troškove nabavljene
energije, troškove usluga snabdijevanja i ponekad maloprodajnu maržu/profit ili stopu
nenaplate.

52
 - U sektoru za električnu energiju odobrenje nenaplativog duga je uključeno u
dozvoljeni prihod u Albaniji, Bosni i Hercegovini, BJR Makedoniji, Turskoj i Kosovu*,
dok se profit priznaje u regulsane prihode od snabdijevanja u BJR Makedoniji, Srbiji i
Ukrajini (samo za kompanije gdje je uvedena podsticajna regulacija).
- U sektoru za gas, stopa nenaplate je uključena u dozvoljeni prihod za snabdijevanje u
Srbiji a stopa povrata u Ukrajini. U slučaju naknada za cijenu roba, ovo rezultira i u
naknadama u finalnim cijenama, obično ne automatski, već na zahtjev regulisanih
sbadjevača (u nekim slučajevima svake godine). Generalno, cijeli iznos naknade
troška se prenosi na potrošače.

3. UNIVERZALNE USLUGE –ZADANI SNABDJEVAČ –OBAVEZA

PRUŽANJA JAVNIH USLUGA

Specifično za električnu energiju, koncept univerzalne usluge se koristi za regulisano

snabdijevanje na svim analiziranim tržištima sa izuzetkom Ukrajine. Univerzalne usluge pruža
snabdjevač posljednjeg izbora na svim analiziranim tržištima. Štaviše, u nekim zemljama
postoji i definicija zadanog snabdjevača (Bosna i Hercegovina i Hrvatska za domaćinstva).

Na kraju, pružanje univerzalnih usluga ili izvršavanje obaveza pružanja javnih usluga u
smislu implementacije regulacije cijene za krajnjeg korisnika je u mnogim slučajevima
ograničena u vremenu. U Albaniji, Hrvatskoj, Crnoj Gori, Turskoj i Ukrajini implementacija
regulisanih cijena za domaćinstva i mala preduzeća nema vremensko ograničenje. Na svim
ostalim istraženim tržištima krajnji rok za ukidanje regulisanih cijena za krajnjeg korisnika za
domaćistva je 1 januar 2015 a za mala preduzeća u nekim slučajevima čak i ranije.

4. OSTALE NAKNADE

Na kraju, neke druge naknade ili takse, su takođe uključene u regulisane tarife ili cijene za
krajnje korisnike, kao što su naknade za finansiranje regulatornih agencija ili podršku
obnovljivih izvora energije.

- Izuzimajući Ukrajinu, regulatorna naknada je uključena implicitno (ne vidi se na

računu) u sve tarife na svim analiziranim tržištima (u Srbiji samo u tarifu za prenos).
- Podrška za električnu energiju iz obnovljivih izvora je uključena u veleprodajnu tarifu
za javno snabdijevanje u Albaniji i Ukrajini, u tarifu za snabdijevanje u Bosni i
Hercegovini, Hrvatskoj, Kosovu*, Moldaviji iTurskoj (uHrvatskoj i Bosni i Hercegovini
ona se vidi na računu za električnu enertgiju) i u tarifi za organizaciju i poslovanje
tržišta u BJR Makedoniji.

53
APPENDIX
Questionnaire

GAS
PRENOS

1. Type of implemented regulation:

Cost plus
Revenue cap
Price cap
Other (if implemeted, please explain below)

     

2. Length of regulatory period:      

3. Are there regulatory accounting guidelines/rules applicable for tariff regulation?

Yes
No

If yes, please provide reference below:

     

4. Are all operation and maintenance costs from the statutory accounting
recognized in the dozvoljeni prihod?

Yes
No

If no, please provide below criteria for

recognition of OPEX in the dozvoljeni prihod
i.e. what costs are defined as justified/non-

54
 justified, are there some costs predefined as
controllable and non-controllable, are there pre-
determined limits for certain costs:

     

5. In case of incentive based regulation, what is the percentage of the currently

applied efficiency factor? Please also clarify whether this is yearly based
information or it refers to total efficiency factor for the whole regulatory period? Is
efficiency factor sector based or individual (company based)? If individual, please
provide percentages for all companies.

     

6. When determining the cost efficiency (X factor), do you implement benchmarking

procedures?

Yes, for controllable part of OPEX

Yes, for total OPEX

Yes, for OPEX and CAPEX

(TOTEX)

No

If yes, please provide explanation of the

implemented benchmarking methodology
(whether it is uni- dimensional or multi-
dimensional; parametric (COLS, SFA) or non-
parametric (DEA, SDEA), other?)

     

7. Has the regulator the right to re- evaluate assets if deems necessary?

Yes
No

If yes, under what circumstances and what

methodology may be used?

55
      

8. Have assets been re- evaluated in the process of tariff regulation?

Yes
No

If yes, what methodology has been used

(historic costs, replacement costs, other)?:

     

9. What are the criteria for including or not including certain assets in the RAB?
What is the legal background for this?

     

10. Does the regulator approve investment plans ex- ante?

Yes
No

11. Does the regulator monitor the implementation of investment plan? How does it
influence RAB ex-post?

Yes
No

     

12. Are assets under construction included in the RAB?

Yes
No

If yes, please explain how are they included e.g.

56
 only ex- post (when assets in use) or ex- ante
(as a way of incentivizing investments; if
applied, please explain how it is evaluated):

     

13. Depreciation method implemented

Straight- line depreciation

Accelerated depreciation
Other

If other, please explain:

     

If depreciation method differs for old and new

(for the regulatory period), assets please
explain:

     

14. Please provide the lista asset lives of the most important assets (pipes,
compressor stations, etc.)

     

15. Does the regulator define asset lives for the regulatory purposes?

Yes
No

16. Are the assets funded by capital contributions (e.g. connection charges) included
in RAB?

Yes
No

Please provide brief explanation of the

approach:

57
      

17. Is depreciation of assets funded by capital contributions recognized in the

dozvoljeni prihod?

Yes
No

Please provide brief explanation of the

approach:

     

18. Are intangible assets included in RAB?

Yes
No

Please provide brief explanation of the

approach:

     

19. Is working capital included in RAB?

Yes
No

If yes, please explain how it is calculated:

58
      

20. In case of regulatory period longer than 1 year, how do you treat RAB during the
regulatory period (e.g. are there any automatic adjustments or yearly based
revision?)

     

21. Rate of return calculated as:

WACC
Other

If other, please explain the approach:

     

22. Please complete the Tabelas below, if applicable:

Gearing
WACC (real, (debt/ Return on Return
pre-tax) (debt+equity) equity on debt
)

% % % %

59
 Beta
Risk free rate Market return
coefficient

% % %

Please explain how do you determine risk free rate, beta coefficient and market
return:

     

Please explain below how is return on equity and/or return on debt calculated, if not
by using CAPM for Re and company’s weighted debt for Rd:

     
23. Please provide the definition of losses recognized in the dozvoljeni prihod, both
technical and commercial, if applicable:

     
24. Please describe the procedure and criteria for recognizing losses in the dozvoljeni
prihod for prenos, for both technical and commercial losses (including the lista
information the regulator requires from the prenos company):

     

25. Please provide the currently allowed percentage(s) of losses in the prenos
network:

     

26. How is the price for allowed losses determined?

     

27. What kind of stranded costs, if any, are recognized in the dozvoljeni prihod and to
what extent are they recognized? Please provide relevant criteria

     

28. Are there any revenues prenos system operator earns (i.e. revenues from non-
regulated activities, but performed by using regulated asset base) that are
deducted from the dozvoljeni prihod? If yes, please explain which revenues.

     

29. When calculating prenos tariffs, how do you determine quantities taken into
consideration? Please provide legal reference to this.

     

60
30. After expiry of a regulatory period, how do you calculate correction of the
dozvoljeni prihod (the amount of over/under –recovery that is to be compensated
in the next regulatory period)?

Only by taking into consideration

actual quantities transported
Taking into consideration actual
quantities, but also by comparing
planned and realized costs
Other

Please provide legal reference:

     

Please explain briefly the applied criteria and

the method of calculation:

     

61
DISTRIBUCIJA

1. Type of implemented regulation:

Cost plus
Revenue cap
Price cap
Other (if implemented, please explain below)

     

2. Length of regulatory period:      

3. Are there regulatory accounting guidelines/rules applicable for tariff regulation?

Yes
No

If yes, please provide reference below:

     

4. Are all operation and maintenance costs from the statutory accounting
recognized in the dozvoljeni prihod?

Yes
No

If no, please provide below criteria for

recognition of OPEX in the dozvoljeni prihod
i.e. what costs are defined as justified/non-
justified, are there some costs predefined as
controllable and non-controllable, are there pre-
determined limits for certain costs:

     

5. In case of incentive based regulation, what is the percentage of the currently

applied efficiency factor? Please also clarify whether this is yearly based
information or it refers to total efficiency factor for the whole regulatory period? Is

62
 efficiency factor sector based or individual (company based)? If individual, please
provide percentages for all companies.

     

6. When determining the cost efficiency (X factor), do you implement benchmarking

procedures?

Yes, for controllable part of OPEX

Yes, for total OPEX

Yes, for OPEX and CAPEX

(TOTEX)

No

If yes, please provide explanation of the

implemented benchmarking methodology
(whether it is uni- dimensional or multi-
dimensional; parametric (COLS, SFA) or non-
parametric (DEA, SDEA), other?)

     

7. Has the regulator the right to re- evaluate assets if deems necessary?

Yes
No

If yes, under what circumstances and what

methodology may be used?

     

8. Have assets been re- evaluated in the process of tariff regulation?

Yes

63
 No

If yes, what methodology has been used

(historic costs, replacement costs, other)?

     

9. What are the criteria for including or not including certain assets in the RAB?
What is the legal background for this?

     

10. Does the regulator approve investment plans ex- ante?

Yes
No

11. Does the regulator monitor the implementation of investment plan? How does it
influence RAB ex-post?

Yes
No

     

12. Are assets under construction included in the RAB?

Yes
No

If yes, please explain how are they included e.g.

only ex- post (when assets in use) or ex- ante
(as a way of incentivizing investments; if
applied, please explain how it is evaluated):

     

64
13. Depreciation method implemented:

Straight- line depreciation

Accelerated depreciation
Other

If other, please explain:

     

If depreciation method differs for old and new

(for the regulatory period) assets, please
explain:

     

14. Please provide the lista asset lives of the most important assets (pipes,
compressor stations, etc.):

     

15. Does the regulator define asset lives for the regulatory purposes?

Yes
No

16. Are the assets funded by capital contributions (e.g. connection charges) included
in RAB?

Yes
No

Please provide brief explanation of the

approach:

     

17. Is depreciation of assets funded by capital contributions recognized in the

dozvoljeni prihod?

65
 Yes
No

Please provide brief explanation of the

approach:

     

18. Are intangible assets included in RAB?

Yes
No

Please provide brief explanation of the

approach:

     

19. Is working capital included in RAB?

Yes
No

If yes, please explain how it is calculated:

     

66
20. In case of regulatory period longer than 1 year, how do you treat RAB during the
regulatory period (e.g. are there any automatic adjustments or yearly based
revision?)

     

21. Rate of return calculated as:

WACC
Other

If other, please explain the approach:

     

22. Please complete the Tabelas below, if applicable:

Gearing
WACC (real, (debt/ Return on Return
pre-tax) (debt+equity) equity on debt
)

% % % %

Beta
Risk free rate Market return
coefficient

67
 % % %

Please explain how do you determine risk free rate, beta coefficient and market
return:

     

Please explain below how is return on equity and/or return on debt calculated, if not
by using CAPM for Re and company’s weighted debt for Rd:

     

23. Please provide the definition of losses, both technical and commercial,
recognized in the dozvoljeni prihod:

     
24. Please describe the procedure and criteria for recognizing losses in the dozvoljeni
prihod for distribucija, for both technical and commercial (including the lista
information the regulator requires from the distribucija company):

     

25. Please provide the currently allowed percentage(s) of losses in the distribucija
network (if allowed differently for different companies, please provide all):

     

26. How is the price for allowed losses determined?

     

27. What kind of stranded costs, if any, are recognized in the dozvoljeni prihod and to
what extent are they recognized? Please provide relevant criteria

     

28. Are there any revenues distribucija system operator earns (i.e. revenues from
non- regulated activities, but performed by using regulated asset base) that are
deducted from the dozvoljeni prihod? If yes, please explain which revenues.

     

29. When calculating distribucija tariffs, how do you determine quantities taken into
consideration? Please provide legal reference to this.

     

68
30. After expiry of a regulatory period, how do you calculate correction of the
dozvoljeni prihod (the amount of over/under –recovery that is to be compensated
in the next regulatory period)?

Only by taking into consideration

actual quantities distributed
Taking into consideration actual
quantities, but also by comparing
planned and realized costs
Other

Please provide legal reference:

     

Please explain briefly the applied criteria and

the method of calculation:

     

69
SUPPLY (if regulated)

1. Please provide definition (list) of supply service costs recognized in the final
regulated price of gas:

     

2. Are bad debts recognized in the final regulated price of gas?

Yes
No

If yes, please provide the criteria for their

recognition:

     

3. Is non- collection recognized in the final regulated price of gas?

Yes
No

If yes, what is the percentage currently allowed:

     

If yes, how is this allowance determined (what are the criteria

implemented)?

     

4. How is the change in commodity cijene treated in the final price regulation? Is
there some kind of automatic mechanism applied? Please provide also legal
reference to this:

     

70
OTHER:

1. Are the costs for financing the regulatory institution included in tariff?

Yes
No

If yes, please explain in what tariff(s):

     

If yes, please explain how it is determined (please provide legal

reference)

     

71
ELEKTRIČNA ENERGIJA
PRENOS

1. Type of implemented regulation:

Cost plus
Revenue cap
Price cap
Other (if implemeted, please explain below)

     

2. Length of regulatory period:      

3. Are there regulatory accounting guidelines/rules applicable for tariff regulation?

Yes
No

If yes, please provide reference below:

     

4. Are all operation and maintenance costs from the statutory accounting
recognized in the dozvoljeni prihod?

Yes
No

If no, please provide below criteria for

recognition of OPEX in the dozvoljeni prihod
i.e. what costs are defined as justified/non-
justified, are there some costs predefined as
controllable and non-controllable, are there pre-
determined limits for certain costs:

     

5. In case of incentive based regulation, what is the percentage of the currently

applied efficiency factor? Please also clarify whether this is yearly based
information or it refers to total efficiency factor for the whole regulatory period? Is

72
 efficiency factor sector based or individual (company based)? If individual, please
provide percentages for all companies.

     

6. When determining the cost efficiency (X factor), do you implement benchmarking

procedures?

Yes, for controllable part of OPEX

Yes, for total OPEX

Yes, for OPEX and CAPEX

(TOTEX)

No

If yes, please provide explanation of the

implemented benchmarking methodology
(whether it is uni- dimensional or multi-
dimensional; parametric (COLS, SFA) or non-
parametric (DEA, SDEA), other?)

     

7. How are the costs related to reactive power treated when calculating dozvoljeni
prihod?

     

8. Has the regulator right to re- evaluate assets if deems necessary?

Yes
No

If yes, under what circumstances and what

methodology may be used?

     

73
9. Have assets been re- evaluated in the process of tariff regulation?

Yes
No

If yes, what methodology has been used

(historic costs, replacement costs, other)?

     

10. What are the criteria for including or not including certain assets in the RAB?
What is the legal background for this?

     

11. Does the regulator approve investment plans ex- ante?

Yes
No

12. Does the regulator monitor the implementation of investment plan? How does it
influence RAB ex-post?

Yes
No

     

13. Are assets under construction included in the RAB?

Yes
No

If yes, please explain how are they included e.g.

only ex- post (when assets in use) or ex- ante
(as a way of incentivizing investments; if
applied, please explain how it is evaluated):

74
      

14. Depreciation method implemented

Straight- line depreciation

Accelerated depreciation
Other

If other, please explain:

     

If depreciation method differs for old and new

(for the regulatory period) assets, please
explain:

     

15. Please provide the lista asset lives of the most important assets (network,
substations, etc.)

     

16. Does the regulator define asset lives for the regulatory purposes?

Yes
No

17. Are the assets funded by capital contributions (e.g. connection fees) included in
RAB?

Yes
No

Please provide brief explanation of the

approach:

     

75
18. Is depreciation of assets funded by capital contributions recognized in the
dozvoljeni prihod?

Yes
No

Please provide brief explanation of the

approach:

     

19. Are intangible assets included in RAB?

Yes
No

Please provide brief explanation of the

approach:

     

20. Is working capital included in RAB?

Yes
No

If yes, please explain how it is calculated:

     

76
21. In case of regulatory period longer than 1 year, how do you treat RAB during the
regulatory period (e.g. are there any automatic adjustments or yearly based
revision?)

     

22. Rate of return calculated as:

WACC
Other

If other, please explain the approach:

     

23. Please complete the Tabelas below, if applicable:

Gearing
WACC (real, (debt/ Return on Return
pre-tax) (debt+equity) equity on debt
)

% % % %

77
 Beta
Risk free rate Market return
coefficient

% % %

Please explain how do you determine risk free rate, beta coefficient and market
return:

     

Please explain below how is return on equity and/or return on debt calculated, if not
by using CAPM for Re and company’s weighted debt for Rd:

     
24. Please provide the definition of losses recognized in the dozvoljeni prihod, both
technical and commercial, if applicable:

     

25. Please describe the procedure and criteria for recognizing losses in the dozvoljeni
prihod for prenos, for both technical and commercial (including the lista
information the regulator requires from the prenos company):

     

26. Please provide the currently allowed percentage(s) of losses in the prenos
network:

     

27. How is the price for allowed losses determined?

     

28. What kind of stranded costs, if any, are recognized in the dozvoljeni prihod and to
what extent are they recognized? Please provide relevant criteria.

     

29. Are there any revenues prenos system operator earns (i.e. revenues from non-
regulated activities, but performed by using regulated asset base, e.g. revenues
from congestion) that are deducted from the dozvoljeni prihod? If yes, please
explain which revenues.

     

30. When calculating prenos tariffs, how do you determine quantities taken into
consideration? Please provide legal reference to this.

78
      

31. After expiry of a regulatory period, how do you calculate correction of the
dozvoljeni prihod (the amount of over/under –recovery that is to be compensated
in the next regulatory period)?

Only by taking into consideration

actual quantities transported
Taking into consideration actual
quantities, but also by comparing
planned and realized costs
Other

Please provide legal reference:

     

Please explain briefly the applied criteria and

the method of calculation:

     

32. What kind of ancillary services costs, if any, are recognized in the dozvoljeni
prihodand how? Please provide relevant criteria (type of ancillary services and
unit cijene)

     

79
DISTRIBUCIJA

1. Type of implemented regulation:

Cost plus
Revenue cap
Price cap
Other (if implemented, please explain below)

     

2. Length of regulatory period:      

3. Are there regulatory accounting guidelines/rules applicable for tariff regulation?

Yes
No

If yes, please provide reference below:

     

4. Are all operation and maintenance costs from the statutory accounting
recognized in the dozvoljeni prihod?

Yes
No

If no, please provide below criteria for

recognition of OPEX in the dozvoljeni prihod
i.e. what costs are defined as justified/non-
justified, are there some costs predefined as
controllable and non-controllable, are there pre-
determined limits for certain costs:

     

5. Do allowed costs include cost of reserves?

Yes

No

80
 6. In case of incentive based regulation, what is the percentage of the currently
applied efficiency factor? Please also clarify whether this is yearly based
information or it refers to total efficiency factor for the whole regulatory period? Is
efficiency factor sector based or individual (company based)? If individual, please
provide the percentage for several representative companies.

     

7. When determining the cost efficiency (X factor), do you implement benchmarking

procedures?

Yes, for controllable part of OPEX

Yes, for total OPEX

Yes, for OPEX and CAPEX

(TOTEX)

No

If yes, please provide explanation of the

implemented benchmarking methodology
(whether it is uni- dimensional or multi-
dimensional; parametric (COLS, SFA) or non-
parametric (DEA, SDEA), other?)

     

8. How are the costs related to reactive power treated when calculating dozvoljeni
prihod?

     

9. Has the regulator right to re- evaluate assets if deems necessary?

Yes
No

If yes, under what circumstances and what

methodology may be used?

81
      

10. Have assets been re- evaluated in the process of tariff regulation?

Yes
No

If yes, what methodology has been used

(historic costs, replacement costs, other)?:

     

11. What are the criteria for including or not including certain assets in the RAB?
What is the legal background for this?

     

12. Does the regulator approve investment plans ex- ante?

Yes
No

13. Does the regulator monitor the implementation of investment plan? How does it
influence RAB ex-post?

Yes
No

     

14. Are assets under construction included in the RAB?

Yes
No

82
 If yes, please explain how are they included e.g.
only ex- post (when assets in use) or ex- ante
(as a way of incentivizing investments; if
applied, please explain how it is evaluated):

     

15. Depreciation method implemented:

Straight- line depreciation

Accelerated depreciation
Other

If other, please explain:

     

If depreciation method differs for old and new

(for the regulatory period) assets, please
explain:

     

16. Please provide the lista asset lives of the most important assets (network,
substations, etc.):

     

17. Does the regulator define asset lives for the regulatory purposes?

Yes
No

18. Are the assets funded by capital contributions (e.g. connection charges) included
in RAB?

83
 Yes
No

Please provide brief explanation of the

approach:

     

19. Is depreciation of assets funded by capital contributions recognized in the

dozvoljeni prihod?

Yes
No

Please provide brief explanation of the

approach:

     

20. Are intangible assets included in RAB?

Yes
No

Please provide brief explanation of the

approach:

     

21. Is working capital included in RAB?

84
 Yes
No

If yes, please explain how it is calculated:

     

22. In case of regulatory period longer than 1 year, how do you treat RAB during the
regulatory period (e.g. are there any automatic adjustments or yearly based
revision?)

     

23. Rate of return calculated as:

WACC
Other

If other, please explain the approach:

     

24. Please complete the Tabelas below, if applicable:

85
 Gearing
WACC (real, (debt/ Return on Return
pre-tax) (debt+equity) equity on debt
)

% % % %

Beta
Risk free rate Market return
coefficient

% % %

Please explain how do you determine risk free rate, beta coefficient and market
return:

     

Please explain below how is return on equity and/or return on debt calculated, if not
by using CAPM for Re and company’s weighted debt for Rd:

     

25. Please provide the definition of losses, both technical and commercial,
recognized in the dozvoljeni prihod:

     

26. Please describe the procedure and criteria for recognizing losses in the dozvoljeni
prihod for distribucija, for both technical and commercial (including the lista
information the regulator requires from the distribucija company):

     

27. Please provide the currently allowed percentage(s) of losses in the distribucija
network (if allowed differently for different companies, please provide all):

     

28. How is the price for allowed losses determined?

     

29. What kind of stranded costs, if any, are recognized in the dozvoljeni prihod and to
what extent are they recognized? Please provide relevant criteria

     

86
30. Are there any revenues distribucija system operator earns (i.e. revenues from
non- regulated activities, but performed by using regulated asset base) that are
deducted from the dozvoljeni prihod? If yes, please explain which revenues.

     
31. When calculating distribucija tariffs, how do you determine quantities taken into
consideration? Please provide legal reference to this.

     

32. After expiry of a regulatory period, how do you calculate correction of the
dozvoljeni prihod (the amount of over/under –recovery that is to be compensated
in the next regulatory period)?

Only by taking into consideration

actual quantities distributed
Taking into consideration actual
quantities, but also by comparing
planned and realized costs
Other

Please provide legal reference:

     

Please explain briefly the applied criteria and

the method of calculation:

     

87
SUPPLY (if regulated)

1. Please provide definition (list) of supply service costs recognized in the final
regulated price of električna energija:

     

2. Are bad debts recognized in the final regulated price of električna energija?

Yes
No

If yes, please provide the criteria for their

recognition:

     

3. Is non- collection recognized in the final regulated price of električna energija?

Yes
No

If yes, what is the percentage currently allowed:

     

If yes, how is this allowance determined (what are the criteria

implemented)?

     

4. How is the change in commodity cijene treated in the final price regulation? Is
there some kind of automatic mechanism applied? Please provide also legal
reference to this:

     

88
UNIVERSAL SERVICE82

1. Does your legislation recognize default supplier and the supplier of last resort:

Default supplier:
Yes
No

Supplier of last resort:

Yes
No

2. Which end-use customers have the right to resort to the default supplier/supplier
of last resort (tariff):

Households

Small enterprises
All customers

Share of households under default tariff (of total households):

     %

3. Indicate if your legislation specified a methodology for universal service:

For default supplier:

Yes
No

For the supplier of last resort:

Yes
No

4. Which institution in your country is the price setting authority (for regulated retail
cijene):

NRA
Ministry (of Economy etc.)
Other

5. How is commodity (energy) that is sold by the retailers to the consumers at

regulated tariff as universal service procured:
82
As described in Article 3(3) of Directive 2003/54/EC

89
 Power exchange
Bilateral contracts
Competitive procurement (auctions)
Combination
Other (please specify)
Indicate the share of energy procured:

      % (power exchange)

      % (bilateral contracts)

     % (auctions)

     % (other)

6. What is the time limit for the supply under the last resort service:

For default supplier:

No time limit
Time limit:

Indicate the time limit:

     weeks

7. The case in which default or supplier of last resort is applicable:

Customer non-payment
Customer cannot find a supplier
Supplier going bankrupt
Customer does not choose a supplier
Expired contract
Other:

Please indicate the reason:

     

8. Do you have proposed time schedule for abandoning of the regulated price for
households and small enterprises:

No
Yes

Indicate the year (for example in 2017):

90
for households     

for small enterprises     

91
OTHER:

1. Are the costs for financing the regulatory institution included in tariff?

Yes
No

If yes, please explain in what tariff(s):

     

If yes, please explain how it is determined (please provide legal

reference)

     

2. Is RES support allowance included in tariff?

Yes
No

If yes, please explain in what tariff(s):

     

If yes, please explain how it is determined (please provide legal

reference)

     

92