Law on Surveillance of the Wholesale Electricity and Natural Gas Market (“Official Gazette of Montenegro”, No. 1/22), which transposed Regulation (EU) 1227/2011 of 25 October 2011 on the integrity and transparency of wholesale market into Montenegrin legislation, entered into force on 18th January 2022. This law ensures the achievement of the following goals:
- establishment of an effective system of surveillance over the wholesale electricity and natural gas market, to prevent, detect and suppress market abuses,
- improvement of transparency in the wholesale electricity and natural gas market, to increase trust in the market, increase the number of participants in the wholesale market and establish a reliable price signal,
- provision of additional protection to end customers through adequate regulatory supervision over the behavior of participants in the wholesale market,
- fulfillment of the obligation arising from the process of European integration.
The Law on Surveillance of the Wholesale Electricity and Natural Gas Market prescribes several obligations of wholesale market participants, while REGAGEN has been assigned a supervisory role over the wholesale market.
Wholesale market participants are obliged to:
- submit an application for entry in the register of wholesale market participants before issuing an order to trade or realizing electricity or natural gas purchase and/or sell transaction on the wholesale market (Article 7 of the Law);
- publish inside information within 24h from the occurrence of inside information, using Inside Information Platforms from the ACER’s list (Art. 8 and 9 of the Law);
- notify REGAGEN in the case of the delayed publication of inside information in accordance with Article 9 paragraphs 2 and 3 of the Law;
- notify REGAGEN of the use of exemption related to prohibition of insider trading (Article 10 paragraphs 2 and 3 of the Law);
- compile, regularly update, and submit to REGAGEN a list of persons who have access to inside information (Article 11 of the Law);
- submit to REGAGEN the data on executed transactions by the 15th of the current month for the previous month, as well as to keep records of published inside information and executed transactions (Article 13 of the Law).
In the first month of application of this new law in the field of energy, REGAGEN created a set of templates to facilitate its implementation, namely:
- Application form for an entry in the register of wholesale market participants, 2. Notification of delay in disclosure of inside information, 3. List of electronic systems for publishing insider information (Inside Information Platforms), 4. Notification of the use of exemption related to insider trading, and 5. Notification of the suspected breach in the wholesale energy market in Montenegro or other Energy Community Contracting Party.
- How to trade electricity and cross-border capacities in Montenegro?
Electricity trade is the purchase and sale of electricity for resale (Law on Energy, Article 6, paragraph 1, point 74). How to trade electricity in Montenegro:
- It is not required to have a license to trade;
- The electricity trader concludes a Market Participation Agreement with the Market Operator – COTEE (Energy Law, Article 124, paragraph 2, point 5);
- The electricity trader pays a fee to the Market Operator, COTEE, which in 2022 amounts to 110.93 EUR/month (Law on Energy, Article 124, paragraph 2, point 5);
- Electricity trader may participate in auctions for the purchase of electricity for covering losses in the distribution or transmission system, organized by the Electricity Exchange in Montenegro, BELEN. Planned losses in 2022 in the transmission system amount to 328.07 GWh and planned losses in the distribution system amount to 166.07 GWh (source: The Energy Balance of Montenegro for 2022).
- Information on how to join BELEN and the possibilities of participating in auctions can be found on the link http://belen-spot.me/kako-postati-ucesnik/, and information on the amounts of fees paid by users of BELEN services at the link http://belen-spot.me/en/pravila-i-dokumentacija-rules-and-documents/.
- For the auctions of cross-border capacities on the borders of Montenegro with Albania, Bosnia and Herzegovina, Italy, and Kosovo, the trader registers with SEE CAO. Instructions on registration are given on the following link: https://www.seecao.com/registration.
- Allocations of cross-border capacities on the borders of Montenegro with Albania, Bosnia and Herzegovina, Italy, and Kosovo, are carried out by SEE CAO according to the rules given at the following link: https://www.seecao.com/document/see-cao-set-rules-0;
- For the auctions of cross-border capacities on the borders of Montenegro with Serbia, the trader registers with CGES or EMS. More information on mentioned registration can be found on the following link: https://www.cges.me/trziste/eic-registracija-ucesnika.
- Allocations of cross-border capacities on the borders of Montenegro with Serbia are carried out by CGES or EMS according to the Rules given at the following link: https://www.cges.me/trziste/pravila-za-alokaciju-kapaciteta.