Activity

According to the Law, the Agency’s competences are as follows:

  • Providing energy undertakings with licenses for energy activities,
  • Issuing guarantees of origin for electricity generated from renewable energy sources or high-efficient cogeneration,
  • Setting the status of privileged generator of electricity from renewable energy sources,
  • Approving or setting regulatory allowed revenue, prices and tariffs for energy undertakings,
  • Making decision on appeals,
  • Resolving disputes,
  • Setting acts within its competences and giving consents to acts of energy undertakings,
  • Supervising of operations of energy undertakings.

 

Providing undertakings with licenses for energy activities

 Within this competence, the Agency:

  • Issues rules on the manner and conditions for issuing, modification and revoking of licenses,
  • Issues, modify and revokes licenses,
  • monitor activities of energy undertakings in regards to compliance with conditions set by the license,
  • make annual decisions on setting of fees for licenses,
  • maintain a register of issued and revoked licenses

Issuing of guarantees of origin for electricity generated from renewable energy sources or from high-efficient cogeneration

 Within this competence, the Agency:

  • issues guarantees of origin,
  • acts on the order for transfer or revoke of guarantee of origin,
  • sets the content and manner of keeping the register of guarantees of origin.

Setting of the status of privileged generator of electricity from renewable energy sources

 In this part of its competences, the Agency:

  • sets a status of privileged generator,
  • decides on the termination of a status of privileged generator,
  • sets the content and manner of keeping the register of privileged generators

Approving or setting of regulatory allowed revenue, prices and tariffs to energy undertakings

 The significant role of the Agency in the regulation of electricity prices is reflected in the establishment of acts governing this segment of the regulation, and :

  • methodologies for setting of prices, terms and conditions for:
    • use of electricity transmission and distribution systems,
    • use of gas storage systems, LNG and LPG facilities,
    • provision of ancillary and system services and balancing services for electricity and gas transmission systems;
  • methodologies for setting of prices for use of transmission or distribution system paid by users of direct line connected to the transmission or distribution system;
  • methodologies for setting of regulated tariffs for tariff customers and customers by regulated tariffs for electricity or gas supplied by public supplier;
  • rules to modify tariffs at the request of entity or by the Agency,
  • rules for settlement of difference between justified and realized revenues and approved costs between individual distribution system operators;

The Energy Law gives the Agency authorizations to approve:

  • Regulated tariffs for electricity or gas supply to tariff customers and tariffs for supply to eligible customers that are supplied by a Public supplier, and that may be also offered by other suppliers to eligible customers
  • tariffs applied by a supplier of last resort,
  • tariffs for use of LNG and LPG facilities,
  • charges for removal of congestions on identified entry or exit points in the gas transmission system, that is a part of price (tariff) for transmission and transit of gas, and
  • charge for operation of market operator.

Decision about complaints and dispute resolution

The Agency decides about complaints relating to:

  • an act of the transmission or distribution system operator about denial of access, i.e. connection to transmission or distribution system;
  • terms and conditions from a connection consent;
  • calculation of electricity volumes in the event of unauthorized consumption;
  • final customers in case of suspension of delivery of electricity or gas.

In addition to deciding on complaints as an appellate body, the Agency is authorized to resolve disputes between energy undertakings or between energy undertakings and users of their services, arising from their contractual relations set in accordance with the law, if the contractual parties entrust the settlement of disputes to the Agency.

Setting of acts under its competence and giving consents to acts of energy undertakings
In addition to above mentioned the Agency setts rules:

  • for resolution of disputes by applying rules of arbitrage;
  • for unbundling of electricity market operator;
  • for functioning of public supplier;
  • about requirements for award of permits on the basis of which generators and suppliers of electricity and gas undertakings, may supply eligible customers through a direct line;
  • about conditions and procedure in which eligible customers for electricity and gas may switch to another supplier;
  • maintain confidentiality of commercially sensitive information used by system operators;
  • for unbundling of accounts, management and information, in order to avoid cross-subsidies between activities in the gas sector.

The Agency sets minimum quality of supply, including as follows:

  • quality of service, specifically regarding the time taken by transmission and distribution system operators for electricity and gas to make connection and repairs;
  • continuity of supply;
  • voltage quality for electricity and quality of gas.

The Agency approves the following acts of energy undertakings:

  • methodologies for:
    • setting of prices, terms and conditions for connection to transmission and distribution systems for electricity and gas;
    • setting of prices, terms and conditions  for connection of gas storage system, LNG and LPG facilities;
    • calculation and charging of unauthorized use of electricity;
    • setting of tariffs of a supplier of last resort.
  • Rules for
      • Functioning of transmission system for electricity and gas;
      • Functioning of distribution system for electricity and gas;
      • Metering of energy in distribution systems for electricity and gas;
      • Balancing in gas transmission system;
      • Operation and functioning of gas storage system;
      • Setting of transparent mechanisms for operation and allocation of capacities based on market principles;
      • implementation of transparent mechanisms for operation and allocation of capacities for transmission of electricity based on market principles;
      • allocation of cross-border capacities in conformity with agreed rules in the region.

The Agency approves:

  • general conditions for supply,
  • market rules for electricity market, and
  • Market rules for gas market.

The Agency gives consents to:

  • ten-year development plan for electricity transmission system;
  • annual investment plan of electricity and gas system operator;
  • ten-year development plan for gas transmission system, which is harmonized on a national level and with interconnected systems;
  • Ten year development plans for electricity and gas distribution systems, which are harmonized with development plans for electricity and gas transmission systems;
  • Five year development plan for LNG and LPG facilities, with an annual update, that is issued by LNG and LPG facility Operator;

The Agency also approves:

  • Program i.e. a time schedule for replacement of electricity meters that are owned by other legal and natural persons, as well as their relocation when required;
  • Program of measures for ensuring non-discriminatory conditions for access to transmission and distribution systems for electricity and gas;
  • Technical-operational agreements of a supplier that is exporter or user of gas transit on the territory of Montenegro;
  • Exemption from application of specified terms, conditions and prices for use of new infrastructure for electricity or gas;
  • Exemption from »take or pay« commitment for gas undertakings.

Within the scope of these activities, the Agency supervises and analyses operation and business activities of licenses undertakings in respect of:

  • actual costs and revenues of entities carrying out an activity for which prices or tariffs are set or approved by the Agency;
  • quality of electricity supply, including quality of service, continuity of supply, and voltage quality;
  • application of regulations relating to quality control for petroleum products and gas;
  • implementation of market rules and operation of entities in the energy market, including their impact on competition and protection of final customers’ rights;
  • consumption of energy;
  • implementation of support schemes in the area of renewable energy sources, including terms and conditions and prices for connection of new generators to transmission and distribution systems;
  • application of regulations governing cross-border energy exchange, as well as operation and functioning of entities allocating cross-border capacities on auctions or organizing purchase and sale of energy;
  • application of regulations governing obligation to publish information about cross-border capacities, use of transmission and distribution systems;
  • unbundling of activities for the transmission and distribution system operators for electricity and gas and implementation of program of measures for the application of non-discriminatory conditions for the access to the system operated by electricity and gas transmission or distribution system operators;
  • activities and measures undertaken by energy undertakings with the objective to increase energy efficiency,
  • compliance with license requirements.