The role of ERE in Costumer Protection

The role of ERE in The role of ERE in Costumer ProtectionCostumer Protection

Eduard EleziEduard EleziAlbanian Regulatory AuthorityAlbanian Regulatory Authority

ERE Conference “Albanian Energy Sector, Challenges and Regulation”

Tirana, 7 October 2010

Purpose and Role of EREPurpose and Role of ERE

To protect interest of electricity customersTo protect interest of electricity customers To solve disputes between customers and To solve disputes between customers and

supplier and between the licenseessupplier and between the licensees To ensure an equal and nondiscriminatory To ensure an equal and nondiscriminatory

treatment to all the customers by legal and treatment to all the customers by legal and transparent procedurestransparent procedures

To monitor and control services to the To monitor and control services to the licensees toward the electricity customerslicensees toward the electricity customers



LEGAL FRAMEWORK LEGAL FRAMEWORK Electricity Directive 2003/54/EC of the Electricity Directive 2003/54/EC of the

European Parliament and the Council of European Parliament and the Council of Europe and the Treaty on the Establishment of Europe and the Treaty on the Establishment of the Energy Community. the Energy Community.

Law No. 9072, dated 22 May 2003 “On the Law No. 9072, dated 22 May 2003 “On the Power Sector.” Power Sector.”

Energy Distribution Code. Energy Distribution Code. Power Measuring Code. Power Measuring Code. Albanian Market Model and the Market Rules. Albanian Market Model and the Market Rules. Energy supply contracts for residential and Energy supply contracts for residential and

non-residential customers.non-residential customers.



Complain classificationComplain classification

The Complains of customers with The Complains of customers with suppliers are in fulfilling the contractual suppliers are in fulfilling the contractual obligations with the licensees obligations with the licensees

The Complains of customers with the The Complains of customers with the suppliers for the quality of service suppliers for the quality of service offeredoffered

The Complains between the licensees The Complains between the licensees that deal with bilateral relations of the that deal with bilateral relations of the market participantsmarket participants



Procedure for solving the Procedure for solving the complainscomplains

Form and content of a Form and content of a complaincomplain

Each person can present to ERE a complain Each person can present to ERE a complain toward a licensee according to the standard toward a licensee according to the standard form approved by EREform approved by ERE

The complain should provide:The complain should provide:- the party or parties responsible for the - the party or parties responsible for the complaincomplain- the action or non action that is in - the action or non action that is in discordance with the applicable lawsdiscordance with the applicable laws- the calculations of the financial burden- the calculations of the financial burden

- the corrective action, assistance or - the corrective action, assistance or compensation asked for the damage causedcompensation asked for the damage caused



Procedure for solving the Procedure for solving the complainscomplains

ERE with 10 days sends a copy of complains ERE with 10 days sends a copy of complains to a party or parties considered responsible to a party or parties considered responsible for the issue treated in the complainfor the issue treated in the complain

The complain party will answer within ten The complain party will answer within ten days after the notification. The complain days after the notification. The complain party will send a copy of reply to ERE and a party will send a copy of reply to ERE and a copy a complainercopy a complainer

Within 20 days from taking the reply if the Within 20 days from taking the reply if the conflict is not solved ERE plans a hearing conflict is not solved ERE plans a hearing session between the parties or in any case session between the parties or in any case can carry verifications or inspections.can carry verifications or inspections.



Hearing SessionsHearing Sessions

While exercising its competence and While exercising its competence and responsibilities, ERE may organize several responsibilities, ERE may organize several sessions as follows: sessions as follows:

Official public sessions – to receive comments from Official public sessions – to receive comments from

parties concerned about ERE’s rate setting parties concerned about ERE’s rate setting process for process for

customers ERE regulations, guidelines, and customers ERE regulations, guidelines, and documents. documents.

Technical sessions – to solve technical issues Technical sessions – to solve technical issues regarding fees, licensing procedures, conflict regarding fees, licensing procedures, conflict resolution, or other actions. resolution, or other actions.



Ensuring service of Ensuring service of qualityquality

Main responsibility in fulfilling the Main responsibility in fulfilling the obligations of the licensee to the obligations of the licensee to the customercustomer

-Security of supply in continuance-Security of supply in continuance

-Technical security of supply-Technical security of supply

-Commercial security of supply-Commercial security of supply

-The contractual obligations of Energy -The contractual obligations of Energy sellingselling



Security of SupplySecurity of SupplyThe distribution code defines actions that should be taken to The distribution code defines actions that should be taken to

guarantee continuous supply and to resume supply as soon guarantee continuous supply and to resume supply as soon as possible: as possible:

Energy cuts due to defects – a company takes adequate Energy cuts due to defects – a company takes adequate actions and actions and

notifies the customer on progress made. notifies the customer on progress made. Scheduled cuts – notified via media at least 24 hours in Scheduled cuts – notified via media at least 24 hours in

advance. advance. Supply cuts – under certain circumstances, the customer Supply cuts – under certain circumstances, the customer

may be may be asked to reduce the load or use reserve supply sources. asked to reduce the load or use reserve supply sources.

Notifications issued 24 hours in advance. Notifications issued 24 hours in advance. Restrictions – in the event of a power reduction, Restrictions – in the event of a power reduction,

restrictions may be restrictions may be requested. If possible, the company will notify customers. requested. If possible, the company will notify customers.



TECHNICAL QUALITYTECHNICAL QUALITY(Voltage quality)(Voltage quality)

The contract determines the tension The contract determines the tension level level

and tolerance in limits: and tolerance in limits:

+/-10% for urban area customers+/-10% for urban area customers +/-15 % for rural area customers+/-15 % for rural area customers



Commercial Security of Commercial Security of SupplySupply

-The supplier has the right that within 30 days to make the -The supplier has the right that within 30 days to make the cutting of supply in case of surpassing the payment deadline cutting of supply in case of surpassing the payment deadline after the client was notified in written form 72 hours in after the client was notified in written form 72 hours in advanceadvance

-The reconnection is made within 48 hours from the payment-The reconnection is made within 48 hours from the payment-In case of accidental cuttings of supply the company:-In case of accidental cuttings of supply the company:a)a) Should realize supply as soon as possibleShould realize supply as soon as possibleb)b) Should register all the complains and notify the complainer Should register all the complains and notify the complainer

for the durationfor the duration-Activization of supply is provided within 30 days after the -Activization of supply is provided within 30 days after the

request from the client, while the cutting of the supply within request from the client, while the cutting of the supply within 10 days after the request of the client10 days after the request of the client

-When the client needs an additional power, the reply is given -When the client needs an additional power, the reply is given within 30 days from the request.within 30 days from the request.

ERE Conference “Albanian Energy Sector, Challenges and

Regulation” Tirana, 7 October 2010

CONTRACTUAL OBLIGATIONSCONTRACTUAL OBLIGATIONS(From the consumer protection perspective)(From the consumer protection perspective)

The main contractual conditions for energy sales are determined as follows: The main contractual conditions for energy sales are determined as follows:

Frequency of meter reading – monthly and the bill is sent on the 25th of Frequency of meter reading – monthly and the bill is sent on the 25th of the month the month

following the meter reading. following the meter reading. Payment mode – from the second day of the month till the end of the Payment mode – from the second day of the month till the end of the

following following month. month. Charge for a delayed payment – in the event of a delayed payment, the Charge for a delayed payment – in the event of a delayed payment, the

customer customer has to pay 0.5% per day in addition to the amount of the bill but not has to pay 0.5% per day in addition to the amount of the bill but not

more than the total amount of the bill. more than the total amount of the bill. Meter control – within 15 days after receiving the request. Meter control – within 15 days after receiving the request. Energy bill when the meter does not work – For days when the meter is Energy bill when the meter does not work – For days when the meter is

not not in use due to control or malfunctioning, the customer will be billed based in use due to control or malfunctioning, the customer will be billed based

on the on the average daily consumption of the previous month, but no more than a 30-average daily consumption of the previous month, but no more than a 30-

day day consumption. consumption.



Reporting and AuditingReporting and Auditing

The Distribution Company is requested to The Distribution Company is requested to prepare and submit to ERE an annual report prepare and submit to ERE an annual report on its activity focusing, among others, on:on its activity focusing, among others, on:

- A summary and analysis of the distribution - A summary and analysis of the distribution activity of the licensee regarding quality of activity of the licensee regarding quality of service and the details for each measure service and the details for each measure taken for the improvement of servicetaken for the improvement of service

- L- Load sheddings that lasts more than normal oad sheddings that lasts more than normal according to the rules and regulationsaccording to the rules and regulations

- Defects happended during the year- Defects happended during the yearERE Conference “Albanian Energy Sector, Challenges and Regulation”


Auditing and Auditing and BenchmarkingBenchmarking

ERE has created the legal framework ERE has created the legal framework carry an audit, but audit is closely carry an audit, but audit is closely connected to the setting of norms and connected to the setting of norms and quality of servicequality of service

ERE publishes and makes known the ERE publishes and makes known the conditions that ensure the electricity conditions that ensure the electricity services and the situation of electricity services and the situation of electricity sector and the services offered by the sector and the services offered by the operatoroperator

ERE is part of a benchmarking report in ERE is part of a benchmarking report in the region.the region.



OBJECTIVES ON OBJECTIVES ON IMPROVING QUALITY OF IMPROVING QUALITY OF

SERVICESSERVICES ERE is in process to draft the document to define ERE is in process to draft the document to define

the Standards of the quality of service, that will the Standards of the quality of service, that will end by 2010. end by 2010.

ERE will review the Supply Contracts in order to ERE will review the Supply Contracts in order to define accurately consumer rights with respect define accurately consumer rights with respect to main characteristics of power sale service. to main characteristics of power sale service.

ERE will engage in systematic tests to measure ERE will engage in systematic tests to measure the degree of the degree of

customer satisfaction with service of quality, for customer satisfaction with service of quality, for the purpose of monitoring the changes in the purpose of monitoring the changes in perception about the service quality. perception about the service quality.

To have in place a process for drafting these To have in place a process for drafting these documents through transparent procedures. documents through transparent procedures.



Vulnerable Consumers and Vulnerable Consumers and RegulatoryRegulatory

Under the law “On power sector”, ERE has the right to defined the tariffs of energy according to the cost and is Council of Minister that has the duty to realize the social programs.

The Council of Minister has redesigned the group of vulnerable customer included also the state employees to the targeted groups.

The vulnerable consumers obtain the subsidy, only if they are going to pay the bill. Problems of identifying the targeted groups are still present.



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THANK YOU ! THANK YOU !



The role of ERE in Costumer Protection

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