„Energy and Water Regulatory Agency of Montenegro“ (REGAGEN) was established by the Parliament of Montenegro on 22 nd January 2004 as „Energy Regulatory Agency of Montenegro“. Competences and responsibilities of this institution, initially prescribed by the Law on Energy, have been evolving meanwhile, following the Law on communal utilities enacted in 2016 and the Law on monitoring of wholesale electricity and natural gas markets enacted in 2022.
Nowadays, REGAGEN is an independent, non-profit organization, legally and functionally independent form state authorities and energy utilities. This independent regulatory authority is competent in the area of electricity, oil and natural gas, as well as in the area of water supply and wastewater utility regulation.
The main responsibilities of REGAGEN are:
Licensing of energy utilities in the areas of electricity, oil and gas
Determination of status of Closed Distribution System Operator
Licensing of water supply and wastewater utilities
Supervision of energy utilities and Closed Distribution System Operators
Supervision of water supply and wastewater utilities
Determination of regulatory allowed income and prices/fees for regulated electricity utilities
(transmission system operator, distribution system operator and market operator)
Issuing of consent on price proposals by water supply and wastewater utilities
Issuing of consents on ten years development plans of electricity transmission system and
electricity distribution system
Issuing of consents on investment plans of electricity transmission system and electricity
Approval of rules on allocation of cross-border capacities
Resolving of electricity consumers complaints
Monitoring of wholesale electricity market
Annual report on energy sector of Montenegro
Annual report on activities related to the water supply and wastewater utilities
Annual analysis on share of renewable energy sources and high-efficiency cogeneration in
total electricity generation and consumption
Annual benchmarking report of water supply and wastewater utilities
Following the ratified international treaty, REGAGEN conducts decisions of Energy Community bodies. With an aim to foster cooperation between the regulators in Energy Community, REGAGEN could enter into bilateral cooperation arrangements. REGAGEN cooperates with national regulatory authorities, other competent authorities of Energy Community Contracting Parties and states in the region in the area of cross-border issues, contributes to the market integration, as well as harmonisation and exchange of data and information at the regional level.
At the international level, REGAGEN is full member of Energy Community Regulatory Board (ECRB), Association of European Regulators in the drinking water and wastewater sector (WAREG) and Association of Mediterranean Energy Regulators (MEDREG), while it holds an observer status at Council of European Energy Regulators (CEER). At the end of 2017, REGAGEN became the first national regulatory authority from Energy Community that has been granted participation at electricity and gas working groups of The European Union Agency for the Cooperation of Energy Regulators (ACER).
The financing sources of REGAGEN are: fees for licence issuing, annual fees for the license use, fees for determination of status of Closed Distribution System Operator, annual fees for the use of status of Closed Distribution System Operator, fees for arbitration and other fees in line the Law on Energy, as well as fees paid by the water supply and wastewater utilities.