Focus on Energy, 2010 - Karanovic & Nikolic

GAS ENERGY ACTIVITIESOIL ENERGY ACTIVITIES*natural gas transmission*natural gas transmission system operation;*natural gas distribution;*natural gas distribution system operation;*natural gas supply for tariff consumers connectedto the natural gas transmission system;*natural gas supply for captive consumers connectedto the natural gas distribution system;transit of natural gas and*natural gas trading, ancillary services fornatural gas.*oil and oil derivates transportation via pipelines,i.e., product pipelines;*oil processing and oil derivates production;*oil and/or oil derivates storage, as well as thestorage of biofuels and blends of liquid fossil fuelsused transport with biofuels;*transit of oil or derivates, and*trading with oil derivates, biofuels and blends ofliquid fossil fuels used for transport, with biofuels.The ERC is the authorized body for the issuing of licenses, grid rules and for price monitoring and pricedetermination in the oil and gas sectors. This is done through the issuing of by-laws. Such an example isthe “Rulebook on the Method of Price Regulation for Natural Gas Transmission, Distribution and Supply”,which was published in December 2009. Under this rulebook, the ERC is authorized to determine theprices for natural gas.The “Rulebook for the Conditions, Method and Procedure for Obtaining and Terminating Eligible ConsumerStatus for Natural Gas”, also enacted by the ERC, regulates the procedures and required documentation forthe acquiring of the status of an eligible consumer of natural gas.53With regard to oil, the Energy law prescribes the obligations and general regulation of the entities performingoil energy activities into three groups: (i) transit of crude oil and/or oil derivatives, (ii) wholesale of oilderivatives and (iii) retail of oil derivatives. The capped prices of the refinery and retail prices for the oilderivatives are set by the ERC, according to enacted by-laws on the matter 7 .Renewable EnergyEnergy produced from RES is regulated under the Energy Law in terms of the strategic tendencies andobligations undertaken with the Energy Community Treaty. A strategy on renewable energy has not beendeveloped yet, although the Energy Law provisions dedicated to renewable energy relies on the existenceof such a strategic document. Renewable energy is further regulated with the Rulebook on RenewableRecourses for the Production of Electricity, published in the Official Gazette of Macedonia no. 127/2008(the “RES Rulebook”). Besides the general rules regarding renewable energy facilities, the RES Rulebookdetermines the different types of renewable recourses facilities for:FOCUS ON ENERGYThe Energy Agency of Macedonia (the “Energy Agency”) is the policy maker in this area, together withthe Government. Besides policy making, the Energy Agency issues guaranties for the origin of electricityproduced using renewable sources. These guaranties are issued in the form of a certificate, which enablesthe producer of energy to qualify as a privileged producer. Holding such certificates enables the RES-usingproducers to benefit from privileged (feed-in) tariffs 8 .7 The ERC enacts decisions on price of the oil and oil derivatives on regular basis. In 2009, 27 different decisions were enacted, correcting the prices inreflection of the crude oil prices in the international markets.8 Feed-in or privileged tariff is a policy mechanism designed to encourage the adoption of renewable energy sources. It typically includes three key