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INOGATE & Energy tariffs

The tariff paid by every consumer of energy includes its delivery, extraction or import (for gas) and generation or import (for electricity). To guarantee the quality and security of energy supply, tariffs must be paid for at a rate sufficient to recover the operating costs and to provide a reasonable return on the capital invested in the assets.

Payment is generally achieved by a system of tariffs - although some large users may enter into commercial contracts for supply. End consumer tariffs may be applied by commercial suppliers in de-regulated sectors, or through a regulatory process where monopoly suppliers are in place. The network businesses (for transmission and distribution) are viewed as natural monopolies in de-regulated sectors and are always subject to tariffs.

Where there are monopolies, the regulator acts as a proxy for completion by attempting to limit the profits a company makes to that which would be found in a similar organisation in a competitive environment. Through incentives or price controls it encourages efficiency in those companies. End user tariffs are matched to the cost of providing the services to ensure that no cross-subsidisation takes place.

In the INOGATE Partner Countries (PCs), there is a large variation in the tariff methodologies currently in place. In many PCs, particularly those that are considering membership in the EU Energy Community, the tariffs are well designed, and most of the assistance is targeted at specific issues. In those countries that maintain a traditional, vertically integrated structure, assistance is much more geared towards capacity building and advice on the underlying disciplines.

INOGATE has undertaken a tariff review of the Partner Countries to establish their current status and to advise on the steps that they may take if they wish to reform their tariffs according to the central tenets: fairness, transparency, coverage of reasonable costs, efficient allocatation of the costs between customer classes, provision for investment and provision of a reasonable return for the owners.

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Energy tariffs - related news

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INOGATE sums up 20 years of activity at final high-level conference
14/04/2016 - Brussels, Belgium

Ministers, deputy-ministers and other high-ranking officials from INOGATE Partner Countries (PCs), Directors-General from the European Commission and European representatives of international financial organisations, energy agencies, the private s... Read more

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Setting up an independent energy regulator in Azerbaijan - perspectives, concerns and overall planning
13/04/2016 - Azerbaijan

Setting up a regulatory authority for energy is a fundamental factor for the successful implementation of the set of strategic tasks, approved by the Minister of Energy of the Republic of Azerbaijan on July 23, 2015, aiming to introduce market-bas... Read more

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INOGATE & Energy tariffs

Activity Title ▴▾ Date ▴▾ Status ▴ Location Type
INOGATE Annual Report 2011 30/11/2011 - 14/02/2012 Completed Publications
Reports and Studies
Translation of 3rd Energy Package of EU Directives 30/11/2011 - 14/02/2012 Completed Publications
Reports and Studies
Recruitment of Network of Experts 21/03/2012 - 06/04/2012 Completed Publications
Final Report 25/01/2012 - Completed Reports and Studies
Comp A: Internal Training Course 23/04/2012 - 24/04/2012 Completed Kiev (Ukraine) Training Course
New Guidelines & Application Form for Assistance under the ITS Ad Hoc Expert Facility (AHEF) 01/07/2012 - 01/04/2015 Completed Country Requests (AHEFS)
Event
Comp A: Working Group and Country Coordinators Meeting 29/11/2012 - 30/11/2012 Completed Brussels (Belgium) Event
INOGATE Meetings
Comp A: Promotion of the INOGATE Programme in Oil and Gas Forum in Ukraine 23/10/2012 - 25/10/2012 Completed Kiev (Ukraine) Other Event
Final Reprt of ITS 15/02/2012 - 15/02/2012 Completed Reports and Studies
Final Report of SEMISE 01/01/2012 - 01/01/2012 Completed Reports and Studies
Regional Seminar “Electricity Cross Border Trading – EU Perspectives” – Belgium 31/01/2013 - 01/02/2013 Completed Brussels (Belgium) Event
INOGATE Meetings
INOGATE Newsletter 14/12/2012 - 31/01/2015 Completed Publications
Publications
Status Report 2011 30/11/2012 - 30/11/2013 Completed Publications
Reports and Studies
Comp A: Communication Trainings for EU projects in Ukraine 11/12/2012 - 12/12/2012 Completed Kiev (Ukraine) Event
Seminars & Workshops
Comp A: Opening of the INOGATE Technical Secretariat office in Central Asia 09/11/2012 - 09/11/2012 Completed Tashkent (Uzbekistan) Event
Other Event
Comp C: Participation of INOGATE in Donor Round Table Meeting 31/01/2013 - 31/01/2013 Completed Tbilisi (Georgia) Event
Other Event
Comp B: Particpation of INOGATE Experts in the Workshop of Eastern Partnership Energy Regulatory Bodies 18/06/2013 - 18/06/2013 Completed Tbilisi (Georgia) Event
Other Event
Comp A: INOGATE Annual Meeting 09/10/2013 - 09/10/2013 Completed Brussels (Belgium) Event
INOGATE Meetings
Comp B: Capacity building for the Regulatory Authorities of the INOGATE Partner Countries – Regional Seminar and Study Tour 09/10/2013 - 11/10/2013 Completed Bratislava (Slovakia) Event
Seminars & Workshops
Training Course
Comp A: INOGATE Local Information Event in Kyrgyz Republic 22/10/2013 - 23/10/2013 Completed Bishkek (Kyrgyzstan) Event
Information Event
Regional Seminar on “EU Gas and Electricity Tariffs” – Hungary 29/10/2013 - 31/10/2013 Completed Budapest (Hungary) Event
Seminars & Workshops
Comp A: INOGATE Local Information Event in Uzbekistan 29/01/2014 - 29/01/2014 Completed Tashkent (Uzbekistan) Event
Information Event
LIE in Georgia: INOGATE as a successful EU Energy Cooperation Programme: Achievements in Georgia and Way Forward in 2014 19/02/2014 - 19/02/2014 Completed Tbilisi (Georgia) Event
Information Event
ITS Reports 25/01/2014 - 25/01/2014 Completed Reports and Studies
Comp A: INOGATE Local Information Event for Moldova 19/03/2014 - 19/03/2014 Completed Chisinau (Moldova) Event
Information Event

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