R EGULATION OF DISTRICT HEATING AND WATER SECTORS IN L ITHUANIA 2012-01-11.
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Transcript of R EGULATION OF DISTRICT HEATING AND WATER SECTORS IN L ITHUANIA 2012-01-11.
REGULATION OF DISTRICT HEATING AND
WATER SECTORS IN LITHUANIA
2012-01-11
HEATING SECTOR
Legal groundLaw on Energy;
Law on Heat Sector.
Regulatory authorities Ministry of Energy;
NCC;
Municipalities.
NCC role
Approves Heat price calculation methodology and Hot water price calculation methodology;
Issues licenses, controls regulated activity (>10 GWh per year);
Sets basic heat and hot-water price components;
Verifies annual heat price components compliance with the law, unilaterally establishes (if needed) annual heat price components;
Evaluates investments;
Controls price application.
Regulation area (1)
Regulation area (2)
Price components
Generation
Supply
Price of sales
Adjusted every yearAdjusted every month7
Variable component Fixed component
+
+
=
Heat prices
The separation of regulation rolesMUNICIPALITIE
S
NCC
INVESTMENTS
PRICES
Approvement of the investments plans
Evaluation of investments
Setting the annual price components
Verification (unilateral
establishment)
WATER SECTOR
Legal groundLaw on Water Supply and Waste Water
Management.
Regulatory authorities
Ministry of Environment;
NCC;
Municipalities.
NCC role
Approves Water supply and waste water management price calculation methodology;
Issue licenses, controls regulated activity;
Coordinates water supply and waste water management price;
Verifies municipality’s determined water and waste water management price compliance with the law, unilaterally establishes (if needed) price;
Controls price application.
Regulation area (1)
Regulation area (2)
The separation of regulation rolesMUNICIPALITIE
S
NCC
INVESTMENTS
PRICES
Approvement of the development plans
Investment evaluation into the prices
Setting the price
Verification (unilateral
establishment)
Thank You for Your Attention!