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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
Meeting of INOGATE Country Coordinators and Working Groups, Brussels, 18-19 May 2010 18/05/2010 - 19/05/2010 Completed Brussels (Belgium) Event
INOGATE Meetings
Meeting of INOGATE Country Coordinators and Working Group 3 - Brussels, 15th October 2009 15/10/2009 - 15/10/2009 Completed Brussels (Belgium) Event
INOGATE Meetings
Local information event in Tajikistan 20/11/2007 - 20/11/2007 Completed Dushanbe (Tajikistan) Event
Information Event
Local information event in Moldova 30/10/2007 - 30/10/2007 Completed Chisinau (Moldova) Information Event
Event
Local information event in Kyrgyzstan 22/11/2007 - 22/11/2007 Completed Bishkek (Kyrgyzstan) Event
Information Event
Local information event in Kazakhstan 04/12/2007 - 04/12/2007 Completed Astana (Kazakhstan) Event
Information Event
Local information event in Belarus 06/12/2007 - 06/12/2007 Completed Minsk (Belarus) Information Event
Local information event in Azerbaijan 23/10/2007 - 23/10/2007 Completed Baku (Azerbaijan) Event
Information Event
Local information event in Armenia 19/10/2007 - 19/10/2007 Completed Yerevan (Armenia) Event
Information Event
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
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
ITS Activity Completion Reports (ACR) 06/06/2016 - 07/06/2016 Completed Other Event
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
INOGATE Web Portal 15/02/2009 - 14/02/2012 Ongoing Publications
Multi-Annual Report 2012-2014 18/06/2015 - 18/06/2015 Completed Reports and Studies
Publications
INOGATE Newsletter 14/12/2012 - 31/01/2015 Completed Publications
Publications
INOGATE Local Information Events 16/02/2009 - 14/02/2012 Ongoing Astana (Kazakhstan) Event
Information Event
INOGATE Local Information event for Azerbaijan 17/07/2014 - 17/07/2014 Completed Baku (Azerbaijan) Event
INOGATE Meetings
INOGATE Country Coordinators and Country Experts informal meeting 27/04/2015 - 28/04/2015 Completed Tbilisi (Georgia) INOGATE Meetings
INOGATE Annual Report 2011 30/11/2011 - 14/02/2012 Completed Publications
Reports and Studies
INOGATE Annual Report 2009 15/02/2009 - 14/02/2012 Completed Publications
Reports and Studies
INOGATE Annual Meeting – Brussels, 22 October 2014 22/10/2014 - 22/10/2014 Completed Brussels (Belgium) INOGATE Meetings
Event
INOGATE 15th Anniversary Report - INOGATE in Milestones 1996-2011 14/02/2012 - 14/02/2012 Completed Publications
Informal meeting of the INOGATE Country Coordinators 28/09/2015 - 29/09/2015 Completed Kiev (Ukraine) Event
INOGATE Meetings

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