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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
Success stories 17/03/2016 - 17/04/2016 Completed Publications
Setting up an independent energy regulator in Azerbaijan - perspectives, concerns and overall planning 09/03/2016 - 09/03/2016 Completed Baku (Azerbaijan) Event
ITS Activity Completion Reports (ACR) 06/06/2016 - 07/06/2016 Completed Other Event
Reports and Studies
INOGATE Local Information event for Azerbaijan 17/07/2014 - 17/07/2014 Completed Baku (Azerbaijan) Event
INOGATE Meetings
Assistance to Market Participants for the development of the Electricity Commercial Metering Code in Ukraine 23/05/2016 - 23/05/2016 Completed Kiev (Ukraine) Event
Seminars & Workshops
Elimination of cross-subsidies in energy tariffs in Belarus 23/05/2016 - 23/05/2016 Completed Minsk (Belarus)
Review of and Guide for Financial Support Facilities for Renewable Energy and Energy Efficiency in EnC Partner Countries 31/03/2016 - 01/04/2016 Completed Reports and Studies
Other Event
Preparation of INOGATE Work Programmes 16/02/2009 - 14/02/2012 Ongoing Reports and Studies
INOGATE Local Information Events 16/02/2009 - 14/02/2012 Ongoing Astana (Kazakhstan) Event
Information Event
INOGATE Web Portal 15/02/2009 - 14/02/2012 Ongoing Publications
Draft Benchmarking Reports on Progress on the Astana Road Map 03/01/2011 - 11/05/2011 Ongoing Reports and Studies
Development of Country Communication Action Plans 01/03/2011 - 31/12/2011 Ongoing Publications
Preparation of INOGATE Country Leaflets 01/06/2011 - 14/02/2012 Ongoing Publications
Textbooks 30/09/2011 - 31/12/2011 Ongoing Publications
Reports and Studies
INOGATE Regional and Country Work Plans 2015-2016 26/02/2015 - 26/02/2016 Ongoing Brussels (Belgium) Reports and Studies
Preparation of a concept note and a road map for the setup of an independent energy regulator, towards the development of the country's energy market (CWP.01.AZ) 01/01/2016 - 30/04/2016 Ongoing Baku (Azerbaijan) Country Requests (AHEFS)
Country Coordinators` Whorkshop on Communication and Monitoring 19/10/2010 - 20/10/2010 Upcoming Tbilisi (Georgia) Event
Training Course
Country Coordinators Meeting October 2010 19/10/2010 - 20/10/2010 Upcoming Tbilisi (Georgia) Event
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