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Market liberalization in Moldova -main challenges-. Seventh Partnership Activity . Veronica Muruziuc. Chisinau, May 16, 2013. MOLDOVAN POWER MARKET -SPECIFICS-. Power market opening: - From 1 January 2013, all non-household customers were declared eligible (Electricity Act);
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Market liberalization in Moldova-main challenges- Seventh Partnership Activity Veronica Muruziuc Chisinau, May 16, 2013
MOLDOVAN POWER MARKET -SPECIFICS- • Power market opening: - From 1 January 2013, all non-household customers were declared eligible (Electricity Act); - The power market for households will be opened from 1 January 2015 (Electricity Act); - Only one active eligible customer. • Lack of generation capacity: • 70% of electricity imported from Ukraine and Transnistrian Power plant;
MOLDOVAN POWER MARKET -SPECIFICS- - 30% covered by producers from the right side of Dniestr. • Moldovan TSO, Moldelectrica, is a state company and is functionally and legally unbundled; • The 3 DSOs performing their activity on a given area carry out both activities of distribution and supply of electricity at regulated tariffs;
MOLDOVAN POWER MARKET -SPECIFICS- TSO Moldelectrica 1 Independent power producers Transnistria Cross-border exchanges to Romania in island mode Non-regulated CHPs of Sugar Refineries Distribution and supply at regulated tariffs Gas Natural Fenosa RED Nord Vest Regulated Producer HPP Costesti RED Nord 1 Regulated Producers Tariff customers Picador-Grup CHP-North CHP-1 1292719 CHP-2 8 licensees for supply at non-regulated tariffs Cross-border exchanges from Ukraine Eligible customers all non-households Only one active Only one active Legend: Contractual, financial flows (billing and payment) Electricity flows
MOLDOVAN NATURAL GAS MARKET - SPECIFICS - • Natural gas market is fully opened; • No active supplier at non-regulatedtariffs; • No active alternative suppliers: natural gas is imported from Russia.
MOLDOVAN NATURAL GAS MARKET - SPECIFICS - • Moldovan TSO, Moldovatransgaz, a daughter company of Moldovagaz, is functionally and legally unbundled; • The 25 DSOs performing their activity on a given area carry out both activities of distribution and supply of natural at regulated tariffs.
MOLDOVAN NATURAL GAS MARKET - SPECIFICS - Import flows from Russian Federation (via Ukraine) Import Moldovagaz Final Customer (all customers are eligible but no one have the possibility to buy) Distribution Company 12 DSO S&PSO Tiraspoltransgaz Moldovatransgaz TSO TSO To DCs connected to Moldovatransgaz network To DCs connected to the neworks of Moldovagaz-daughter DCs 1 Producer Cross-border flows to Romania (natural gas from Russian Federation to Romania) DSO S&PSO „Darnic-gaz“ JSC 12 Distribution Companies (DC) 1 Supplier at non-regulated tarfiis Technical Link Commercial Link
COMMITMENTS UNDER TCE • In march 2010 Moldova signed the Energy Community Accession Protocol: - Under the treaty Moldova had to transpose the so-called “second energy package”. • According to the Ministerial Council Decision from 6 October 2011, by 1-st January 2015, the Energy Community Contracting parties should transpose the so-called “third energy package”: • Directive No. 2009/72/EC; • DirectiveNo. 2009/73/EC;
COMMITMENTS UNDER TCE • RegulationNo. 714/2009; • RegulationNo. 715/2009. • The scope of the “second energy package” and of the “third energy package” - ensure liberalization of energy markets.
MAIN CHALLENGES • Given specifics of the natural gas and power markets in Moldova, the main challenges regarding liberalization of energy markets are: • To ensure effective unbundling of TSO from producers and suppliers in the natural gas sector; • To establish procedure for switching suppliers by customers, in maximum 3 weeks (in both electricity and natural gas sectors);
MAIN CHALLENGES • To encourage the entrance of new suppliers on the energy markets: • introduction of obligation for non-household customers to buy electricity from the market (could be an option?); • To establish a day-ahead market: • At the level of Energy Community a SEE WMO Report was developed. One of the conclusions was that until Moldova joins ENTSO-E (in about 8 years according to the Report) , the possibility to create a common market with Ukraine should be considered. • To establish a balancing market, an ancillary services market.
THANK YOU. Veronica Muruziuc Legal consultant National Agency for Energy Regulation Tel. +373 22 852 934 E-mail: vmuruziuc@anre.md 90, Columna str., 2012, Chisinau, Republic of Moldova