Review article
REGULATORY POLICY AND ITS IMPACT ON THE DEVELOPMENT AND CONSTRUCTION PLANS OF ENTITIES PERFORMING REGULATED ACTIVITIES
I. Štritof
F. Klečina
Abstract
In December 2006, the Croatian Energy Regulatory Agency – CERA (Hrvatska energetska regulatorna agencija – HERA) adopted tariff systems without stipulating the amounts of the tariff items for the activities of the generation, transmission, distribution and supply of electrical energy. A regulatory method was established through the tariff systems that will be applied in the determination of the amounts of the tariff items for individual activities. One of the prerequisites for the adoption of the amounts of tariff items by the Government of the Republic of Croatia is the adoption of the development and construction plans of the transmission and distribution networks to which the CERA issues approval.
This article presents an analysis of the role of the member regulatory bodies of the Energy Regulators Regional Association in the adoption of plans for the operations and development of transmission and distribution networks and the impact of the chosen regulatory policies on the plans for the operations, development and regulated revenues of the energy entities.
A review is provided of the CERA’s legislative role in the process of the adoption of the development and construction plans of transmission and distribution networks and the regulatory experiences to date in issuing approval for the plans of the entities performing regulated activities in Croatia. Finally, problems and dilemmas are analyzed that will occur when issuing approval for the plans and issuing opinions on proposals for the amounts of tariff items for individual activities. In order to resolve the analyzed problems, the CERA, as a regulatory body, must assume well argued positions with the goal of determining justified and cost-based amounts of the tariff items, while respecting the principle of the transparency of the procedures of a regulatory body.
Keywords
development plans; entity performing regulated activity; regulatory body; regulatory policy; tariff systems
Hrčak ID:
18689
URI
Publication date:
30.10.2007.
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