R EGULATION OF DISTRICT HEATING AND WATER SECTORS IN L ITHUANIA 2012-01-11.

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Presentation transcript:

R EGULATION OF DISTRICT HEATING AND WATER SECTORS IN L ITHUANIA

HEATING SECTOR HEATING SECTOR

Legal ground Law 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 year Adjusted every month 7 Variable component Fixed component + + =

Heat prices

The separation of regulation roles M UNICIPALITIES NCC I NVESTMENTS P RICES Approvement of the investments plans Evaluation of investments Setting the annual price components Verification (unilateral establishment)

W ATER SECTOR W ATER SECTOR

Legal ground Law 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 municipalitys 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 roles M UNICIPALITIES NCC I NVESTMENTS P RICES Approvement of the development plans Investment evaluation into the prices Setting the price Verification (unilateral establishment)

Thank You for Your Attention!