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2 November 2017 - MEDREG’s Working Groups about to finalise the Regulatory Outlook and other key RES, Gas and Consumer reports
MEDREG’s Working Groups about to finalise the Regulatory Outlook and other key RES, Gas and Consumer reports
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Dear Friends,

In October, MEDREG’s Working Groups (WGs) met to discuss and finalise key deliverables making significant breakthrough on the Mediterranean Electricity Observatory (MEMO) Report, the assessment of gas competition indicators and market prices within MEDREG countries, a RES benchmarking report, a survey on disconnection procedures and the Regulatory Outlook, a major survey on the regulatory conditions in all MEDREG countries.

The WGs also acknowledged a very encouraging start of the Support to Regulatory Reforms activities, with a training planned in Tunisia in December and an ongoing peer review looking at the licensing procedures of the Jordanian electricity regulator. In addition, MEDREG is working on its contribution to two reports of the UfM Gas Platform: one assessing the existing and future of the gas supply-demand balance and the other addressing the role of LNG in gas supply security, both in the Euro-Mediterranean region.

Here are the main highlights of the various working groups meetings.

The INS WG is making final adjustments to the Regulatory Outlook, preparing a training for Tunisia, and launching a peer review on the Jordanian regulator’s licensing procedures

23rd INS WG meeting, 9 October 2017, Milan

Chaired by Mr. Nicolò di Gaetano (AEEGSI, Italy) in Milan on 9 October 2017, MEDREG’s 23rd Institutional Working Group (INS WG) meeting saw the participation of 8 members (Albania, Egypt, Greece, Jordan, Italy, Portugal, Spain, Turkey) involved in the drafting of key reports expected to be finalised by the end of the year.

The INS WG is adding final touches to its Regulatory Outlook and started activities under its Support to National Reforms initiative, both projects being key deliverables.

  • Regulatory Outlook: Final improvements are being made to this document which will present the status of energy regulation in the Mediterranean Basin with the aim of providing a complete overview about how the national energy sectors are ruled, ranging from independent entities to governmental bodies. Each regulator will be analysed according to a number of dimensions such as independence, organization, transparency and accountability. The release of the report is expected before the end of the year, after MEDREG’s General Assembly (GA)’s approval in November.

  • Support to National Reforms: the INS WG is planning and implementing various support activities:

    • Peer review for our Jordanian member (EMRC): during a preliminary visit from MEDREG INS WG Chair and Secretariat to EMRC in July, the Jordanian regulator defined the focus of its peer review which will address Licensing Procedures. The INS WG is now putting together a peer review team, composed of experts from MEDREG's Members. A new concept was also introduced within the peer review process to design a set of Key Performance Indicators (KPIs) that help track the progress of regulators according to the MEDREG Good Regulatory Principles. The peer review is expected to be completed in the Summer 2018.

    • Training to Tunisia: In response to a request made from the Tunisian Minister of Energy, Mining and Renewable Energies to support them with the management of the interconnection project Tunisia-Italy as a Project of Common Interest (PCI), MEDREG has elaborated a 2-day training on “EU Regulation on Cross Border Energy Exchanges” for the staff of the Tunisian energy Ministry. The training, scheduled on 5-6 December in Tunis, should enhance their knowledge on the fundamentals and challenges related to the implementation of cross-border interconnections.

The ELE WG is fine-tuning its MEMO report, making progress on its Infrastructure Investment report and pursuing cooperation with Med-TSO

22nd RES WG and 23rd ELE WG’s back-to-back meetings,11 October 2017, Nicosia (Cyprus)

Hosted by the Cyprus Energy Regulator (CERA) on 11 October 2017 in Nicosia and chaired by Mr. Benoit Esnault (CRE, France), the 23rd Electricity Working Group (ELE WG) meeting included 13 participants from 10 members (Cyprus, Egypt, France, Greece, Italy, Jordan, Lebanon, Montenegro, Portugal and Spain).

The Group discussed the MEMO report prepared by EgyptERA, adding final improvements before its adoption by MEDREG’s General Assembly at the end of November. The ELE WG also agreed to cooperate with Med-TSO on their Cross Border Cost Allocation work. Additions were made to the Infrastructure Investment working document, with Cyprus, Greece, Jordan and Lebanon market’s state of play, presented in the meeting.

Before the end of the meeting, the ELE WG was joined by the RES WG to discuss the impact of smart grids on network regulation, a subject for which the two groups are jointly working on. The two WGs agreed on the work methodology prepared by the Secretariat and discussed the division of tasks among the members who will provide support in drafting their national case.

The RES WG brainstormed on its support to MEDREG’s Palestinian member in the deployment of a RES programme and is completing its benchmarking report

Taking place in Cyprus on 11 October in Nicosia and chaired by Mr. Luis Jesus Sanchez (CNMC, Spain), the 22nd Environment, Renewable energy sources and Energy Efficiency Working Group (RES WG) meeting saw the participation of 12 people of which 9 members (Cyprus, Egypt, France, Greece, Italy, Jordan, Lebanon, Portugal, Spain).

The Group discussed how they can contribute to support MEDREG’s Palestinian member (PERC) in developing policies and regulations for the deployment of a RES program, as requested by PERC in the context of MEDREG’s Support to National Reforms initiative. The group also envisaged which National Regulatory Authorities would be likely to share their experiences with PERC.

The final draft of the RES benchmarking report prepared by the Israeli regulator (PUA) was discussed; the report should be completed by an update on the national situation and finalised by the end of the year.

The GAS WG is finalising its assessment of competition indicators and market prices within MEDREG countries and starting its contribution to the UfM Gas Platform

22nd GAS WG meeting, 18 October 2017, Madrid

Chaired by the co-Chair Mr. Pedro Verdelho (ERSE, Portugal) and kindly hosted by MEDREG’s Spanish member (CNMC), the 22nd GAS WG meeting gathered 15 participants from 10 members (Albania, Egypt, France, Italy, Israel, Jordan, Lebanon, Portugal, Spain and Turkey) in Madrid on 18 October.

The Portuguese regulator ERSE leading the drafting of the report on Assessment of competition indicators and market prices within MEDREG countries presented an update of the draft report to members and highlighted the complexity of the data evaluation. With a contribution from the Turkish regulator (EMRA) on Good practices on tariff methodologies, the reports should be finalized in the next couple of weeks before being submitted at the next GA for approval.

The Group was also updated on MEDREG’s participation in the UfM Gas Platform meeting hosted by OME on 15 September in Paris and on the contribution expected from MEDREG to the UfM Gas Platform.
MEDREG has indeed accepted to contribute to two deliverables on “An Advisory assessment of the existing and future of the gas supply-demand balance in the Euro-Mediterranean region” and on “The role of LNG in European-Mediterranean gas supply security”. Mr. Esnault and Mr. Yunta (CNMC, Spain) will coordinate a concept paper that will constitute MEDREG’s contribution to the deliverable on LNG, with the input from all WG members, for the next meeting of the OME working team in December.

The CUS WG is completing its survey on disconnection procedures and is envisaging to jointly work on complaint handling and dispute settlement mechanisms with ECRB

11th CUS WG meeting, 24 October 2017, Milan

Hosted by the Italian Energy Regulator (AEEGSI) in Milan on 24 October 2017 and chaired by Mr. Mohammad Mayaah (EMRC, Jordan), the 11th Consumers Working Group (CUS WG) meeting gathered 8 participants from 6 members (Albania, Algeria, Italy, Jordan, Malta, Spain).

Considering the significant impact that disconnection procedures may have on consumers, the CUS WG prepared a survey on national methods and concepts for the disconnection of household consumers due to unpaid bills. The aim is to provide an overview of national practices and experiences in order to draw general recommendations, working methods and approaches for consumers, enabling them to stand against their energy supplier and reinforce their rights. The group discussed the 16 replies received to the related questionnaire. The Israeli regulator PUA, as a referent regulator, will prepare the final report to be presented for approval in the next GA.

Finally, in view of MEDREG’s cooperation with ECRB, the CUS WG envisages to jointly work on complaint handling and dispute settlement mechanisms with the ECRB’s Customer Retail Market WG. This possibility will be taken forward on the occasion of a first back-to-back meeting in February 2018.

Best Regards,
Mediterranean Energy Regulators

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