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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
Participation of INOGATE Country Coordinators in the Eastern Partnership 3rd Platform Meeting - Belgium 23/10/2014 - 23/10/2014 Completed Brussels (Belgium) Event
Other Event
INOGATE Annual Meeting – Brussels, 22 October 2014 22/10/2014 - 22/10/2014 Completed Brussels (Belgium) INOGATE Meetings
Event
Eastern Europe, Caucasus and Central Asia – Highlights 2013 20/10/2014 - 20/10/2014 Completed Publications
Reports and Studies
Seminar and Study Tour on gas metering stations and data recording, 17-19 June, Vilnius, Lithuania 17/06/2014 - 19/06/2014 Completed Vilnius (Lithuania) Seminars & Workshops
Training Course
Study visits
Local Information Event - INOGATE as a successful EU energy cooperation programme: achievements in Kazakhstan and way forward in 2014, 18 June 2014 - Astana, Kazakhstan 18/06/2014 - 18/06/2014 Completed Astana (Kazakhstan) Information Event
Com B: AHEF MD.110, Calculation of losses in electricity distribution grids, methods of calculation and incorporation of losses in end user tariffs 26/11/2014 - 26/11/2014 Completed Chisinau (Moldova) Country Requests (AHEFS)
Event
Com B: AHEF MD.111, Regulation and monitoring of investment activities of regulated companies 15/12/2014 - 19/12/2014 Completed Chisinau (Moldova) Country Requests (AHEFS)
Event
Com B: AHEF KG.112, Rules for connection to distribution electricity and gas networks 30/11/2014 - 30/12/2014 Completed Bishkek (Kyrgyzstan) Country Requests (AHEFS)
Event
Com B: AHEF KG.114, Strengthening of independence of the energy regulator in Kyrgyzstan – State Department for FEC regulation under the Energy and Industry Ministry of the Kyrgyz Republic 30/11/2014 - 30/11/2014 Completed Bishkek (Kyrgyzstan) Country Requests (AHEFS)
Event
Com B: AM 53, Reactive power control 31/01/2013 - 31/01/2013 Completed Yerevan (Armenia) Country Requests (AHEFS)
Event
EU: IEA / INOGATE Energy Policy Review of countries in Eastern Europe, Caucasus and Central Asia - launch of the compendium publication in Brussels 13/04/2015 - 13/04/2015 Completed Brussels (Belgium) Event
Information Event
EASTERN EUROPE: IEA / INOGATE Eastern Europe, Caucasus and Central Asia Energy Policy Review publication launch event 15/04/2015 - 15/04/2015 Completed Chisinau (Moldova) Event
Information Event
CAUCASUS: IEA / INOGATE Eastern Europe, Caucasus and Central Asia Energy Policy Review publication launch event 17/04/2015 - 17/04/2015 Completed Tbilisi (Georgia) Event
Information Event
CENTRAL ASIA: IEA / INOGATE Eastern Europe, Caucasus and Central Asia Energy Policy Review publication launch event 24/04/2015 - 24/04/2015 Completed Astana (Kazakhstan) Event
Information Event
Organisation of operational framework for Energy Service Companies (ESCO) (AHEF.119.MD) 02/03/2015 - 04/03/2015 Completed Chisinau (Moldova) Event
Seminars & Workshops
Country Requests (AHEFS)
INOGATE Country Coordinators and Country Experts informal meeting 27/04/2015 - 28/04/2015 Completed Tbilisi (Georgia) INOGATE Meetings
Rules of connection to electricity and gas distribution networks (AHEF 064.AM) 16/03/2014 - 16/03/2014 Completed Yerevan (Armenia) Country Requests (AHEFS)
Event
Multi-Annual Report 2012-2014 18/06/2015 - 18/06/2015 Completed Reports and Studies
Publications
A Review of Energy Tariffs in INOGATE Partner Countries 19/06/2015 - 19/06/2015 Completed Publications
Reports and Studies
Assistance to the Ministry of Economy for the transposition of Directives 2009/72/EC & 2009/73/EC into the national legislation 06/07/2015 - 07/07/2015 Completed Chisinau (Moldova) Event
Other Event
Informal meeting of the INOGATE Country Coordinators 28/09/2015 - 29/09/2015 Completed Kiev (Ukraine) Event
INOGATE Meetings
Develop the model and the regulations on elimination of cross-subsidies in energy tariffs (electricity) (CWP.03.BY) 02/11/2015 - 04/11/2015 Completed Minsk (Belarus) Other Event
Event
Country Requests (AHEFS)
Energy Policy Talks “Measures to enhance energy efficiency among Vulnerable Consumers” 03/11/2015 - 03/11/2015 Completed Kiev (Ukraine) Event
Other Event
Executive summary of the 7th Interim Progress Report 01/02/2015 - 31/08/2015 Completed Reports and Studies
Final Conference on “EU Energy Cooperation with Eastern Neighborhood and Central Asia” 17/03/2016 - 17/03/2016 Completed Brussels (Belgium) INOGATE Meetings
Event

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