1. Energy Regulatory Commission of the Republic of Macedonia
Implementation and regulation of the public water supply and urban waste water management in Macedonia, current situation and challenges faced by regulator
Energy Regulatory Commission of the Republic of Macedonia

2. Establishment
Established with the Energy law in 2002, as independent body, operational since 2003
According to the amendments in the Energy Law from 2016 the Commission comprises:
Seven (7) members of the Commission (President and 6 members)

3. ENERGY REGULATORY COMMISSION OF THE REPUBLIC OF MACEDONIA
MEMBER
VICE PRESIDENT
PRESIDENT
MEMBER
MEMBER
Technical secretary
Internal auditor
P R O F E SS I O N A L D E P A R T M E N T S
ELECTRICITY
HEAD OF DEPARTMENT
DEPUTY HEAD OF DEPARTMENT
ADVISOR
ASSOCIATE
NATUARL GAS, OIL AND OIL DERIVATES AND DISTRICT HEATING
ECONOMICS
LEGAL
MONITORING OF ENERGY MARKETS
ADMINISTRATIVE, FINANCIAL AND GENERAL ISSUES
ADVISOR FOR ADMINISTRATIVE AND LEGAL ISSUES
ADVISOR FOR FINANCIAL AND ACCOUNTING ISSUES
ASSOCIATE FOR ARCHIVE
DRIVER
BUFFET WORKER
CLEANER
INFORMATION TECHNOLOGY AND STATISTICS
HEAD OF DEPARTMENT
DEPUTY HEAD OF DEPARTMENT
ADVISOR – PROGRAMMER
ADVISOR FOR SYSTEM ADMINISTRATION AND DATABASE
ASSOCIATE - SYSTEM ANALYST

4. Competencies electricity; natural gas;
oil and oil derivatives, blends of liquid fuels from fossil origin that are used for transport, with bio fuels;
district heating; and
water services

5. Water sector stakeholders
Ministry of Environment and Physical Planning
State environmental Inspectorate
Energy and water Regulatory Commission
ADKOM Association of Providers of Utility services to Macedonia

6. Non-governmental and unprofitable organization,
Represent the public service enterprises at the central government,
Recognized and desirable partner in the field of communal services,
A center of knowledge and experience for the public communal enterprises,
Promoter of the joint cooperation in supporting sustainable local and regional development in an inclusive way.
On daily base ADKOM follows all activities into legal regulation for PCU inform them and organize appropriate workshops.

7. REGULATION:
LAW ON SETTING THE PRICES FOR WATER SERVICES - JANUARY 2016
METHODOLOGY FOR THE SETTING OF WATER SERVICE TARIFFS – May 2017
RULEBOOK ON THE MANNER AND PROCEDURE FOR SETTING OF WATER SERVICE TARIFFS AND OF THE REGULATORY TARIFF FOR WATER SERVICES – May 2017

8. REGULATION OF WATER SERVICE PRICES
Until now:
MUNUCIPALITY
price
regulation
UTILITIES
New way of price determination:
ENERGY REGULATORY COMMISION
price
regulation
UTILITIES

9. Water services:
supply with raw water envisaged for water supplying of the population
supply with drinking water or water supplying
urban wastewater collection and drainage
wastewater treatment

10. Implementation Process

11. Water service provides
> equivalent inhabitants
provide raw water
< equivalent
76 APPLICATION to ERC from 38 UTILITIES – 15 September 2017
Decision for establishing the tariffs for water services by ERC –
21 November 2017 (raw water) and
24 November 2017 (>10.000)
Approved by municipality/government 150 days of days of date of publishing of publishing of the decision in the Official Gazette of the Republic of Macedonia
APPLICATION (above 60) to ERC from 37 UTILITIES
– 15 September 2018
Decision for establishing the tariffs for water services by ERC –
October 2018
Approved by municipality/government 150 days of days of date of publishing of publishing of the decision in the Official Gazette of the Republic of Macedonia

12. Water service provides
Implementation begins....
1st January 2018
1st January 2019
Providing water services on territories that are bigger that equivalent inhabitants as well as that provide raw water for the supply systems
Providing water services on territories that are smaller that equivalent inhabitants as well as that provide raw water for the supply systems

13. Decision for establishing the tariffs for water services by ERC for water services provider on territories that are bigger that equivalent inhabitants and for raw water

14. METHODOLOGY FOR THE SETTING OF WATER SERVICE TARIFFS
ERC
ERC
MIN
Revenue
MAX
Revenue
Service Provider Managerial Board Decision
Municipal Council or Government Approval

15. METHODOLOGY FOR THE SETTING OF WATER SERVICE TARIFFS
MIN REVENUE = operating costs + depreciation of own fixed assets + the price of long term debts of enterprises
MAX REVENUE = operating costs + amortization of own fixed assets + depreciation of free of charge fixed assets + liquidity fixed assets + return on regulated fixed assets.
"Affordability threshold" 3% - shall mean the upper limit expressed in percentages of financial affordability of water services calculated on level of Macedonia in which the price of water services is not higher than a specific percentage of the average total income per household in the specific service area

16. Comparison of the existing average tariffs and average minimum tariffs approved by ERC

17. DETECTED PROBLEMS AND NEXT CHALLENGE
ISSUING DECISIONS SIMULTANEOUSLY FOR SUPPLY WITH RAW WATER ENVISAGED FOR WATER SUPPLYING OF THE POPULATION AND SUPPLY WITH DRINKING WATER OR WATER SUPPLYING
PROMULGATION OF DECISSION BY SERVICE PROVIDER MANAGERIAL BOARD AND APPROVEMENT BY MUNICIPAL COUNCIL OR GOVERNMENT
HUMAN RESOURSES
The challenge currently (status of October 2018) facing the ERC is to analyse the applications of the second group of utilities providing water services on territories that are smaller that equivalent inhabitants , engage with the PUC’s where appropriate and decide on the appropriate tariff determination in accordance with laid down procedures and timescales.
Completion and development of IT platform including PUC detailed database/benchmarking facility
Development of reporting requirements