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

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

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 |
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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 |
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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 |
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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 |
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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 INOGATE Meetings |