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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
ITS Activity Completion Reports (ACR) 06/06/2016 - 07/06/2016 Completed Other Event
Reports and Studies
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)
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)
Success stories 17/03/2016 - 17/04/2016 Completed Publications
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
Final Conference on “EU Energy Cooperation with Eastern Neighborhood and Central Asia” 17/03/2016 - 17/03/2016 Completed Brussels (Belgium) INOGATE Meetings
Event
Setting up an independent energy regulator in Azerbaijan - perspectives, concerns and overall planning 09/03/2016 - 09/03/2016 Completed Baku (Azerbaijan) Event
INOGATE Regional and Country Work Plans 2015-2016 26/02/2015 - 26/02/2016 Ongoing Brussels (Belgium) Reports and Studies
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
Informal meeting of the INOGATE Country Coordinators 28/09/2015 - 29/09/2015 Completed Kiev (Ukraine) Event
INOGATE Meetings
Executive summary of the 7th Interim Progress Report 01/02/2015 - 31/08/2015 Completed 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
A Review of Energy Tariffs in INOGATE Partner Countries 19/06/2015 - 19/06/2015 Completed Publications
Reports and Studies
Multi-Annual Report 2012-2014 18/06/2015 - 18/06/2015 Completed Reports and Studies
Publications
INOGATE Country Coordinators and Country Experts informal meeting 27/04/2015 - 28/04/2015 Completed Tbilisi (Georgia) INOGATE Meetings
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
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
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
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
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
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 Newsletter 14/12/2012 - 31/01/2015 Completed Publications
Publications
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

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