State of compliance
Third Energy Package unbundling requirements for the transmission system operator are transposed by the new Law, which envisages ownership unbundling. On 24 July 2018, the Government adopted a decision on the transfer of shares of the transmission system operator to the Ministry of Transport. Following this, the transmission system operator has to initiate a certification procedure within 30 days. The rules for certification of transmission system operators were adopted by the regulator in August 2018.
With respect to distribution system operators, the Energy Law transposed the unbundling requirements properly, whereas most of the tasks on legal and functional unbundling had already happened in practice. EVN Electricity Distribution, a subsidiary of EVN Makedonija, was established in 2016 and in the course of 2017 conducted most of the activities required for proper functional unbundling. The regulatory authority approved its compliance programme and a compliance officer was appointed and made operational. The new Law imposes an obligation for rebranding and a separate visual identity of the new company that has to be implemented within six months.
ELEM as a network operator that holds also generation and supply licenses is exempted from legal unbundling as it falls under the threshold of 100.000 connected customers. However, the company has not implemented accounting unbundling, which is in breach of Directive 2009/72/EC.
Access to the system
Access to the system
The right to network access is granted by the Energy Law, which transposed the Third Energy Package, including Regulation (EC) 714/2009 with respect to third party access provisions. Access to the network is based on tariffs adopted prior to their coming into effect in a transparent procedure. Network tariffs are regulated and applied in a non-discriminatory manner.
The allocation of cross-border capacity is conducted in accordance with Auction Rules approved by ERC. Regionally coordinated auctions are done through SEE CAO for interconnection capacities on the borders with North Macedonia and Greece, whereas bilaterally coordinated joint auctions are applied with Serbia and Bulgaria.
While the rules for refusal of access and construction of direct lines have been transposed, the corresponding implementing acts must be revised.
The access to the system is governed in compliance with the acquis.
Regulation of the generation price is still present. The obligation of the incumbent generation company ELEM to provide electricity for supply to households and small customers under universal supply and supply of last resort will cease to exist as of 1 January 2019. An obligation of ELEM to offer a certain share of its production at market prices to the universal supplier as of 2019 is defined by the new Energy Law. A step-wise reduction of this share, starting from 80% in 2019 to minimum 30% in 2025 is defined.
The new Law introduced competitive purchases for all public service providers.
The Energy Law requires a market operator to be established by the transmission system operator in early September 2018 at the latest. The Government is obliged to prescribe the operation of an organized market until 5 December 2018, and either designate the established market operator to manage the organized day-ahead market or to launch a procedure to select a provider of this service.
The selection of an efficient way to establish an organised day-ahead market was supported by a technical assistance project under the WB6 regional energy market connectivity programme. According to the analysis conducted, a market operator with domestic institutional ownership and a cost-effective service provision should be established.
The Law allows ERC to introduce measures to improve liquidity, in cooperation with the competition authority.
Legal obstacles to the transmission system operator to procure balancing services in a non-discriminatory and market-based manner were removed by the adoption of the new Energy Law. The new Law requires the transmission system operator to adopt new balancing rules by September 2018, to be implemented from January 2019. Until then, the incumbent producer ELEM shall continue to provide balancing services at regulated prices.
Currently, the undertakings providing public service are exempted from balancing responsibility.
The Law obliges market participants to submit the necessary data to the system operator, as well as the system operator to submit information to ENTSO-E. The deadline for adoption of the rules on providing information by market participants to the system operator and the rules for coordination and information exchange mechanisms and congestion management is 5 December 2019.
Until the provisions of the Law are implemented, the functioning of the wholesale market will remain non-compliant with the acquis.
The new Energy Law grants the eligibility right to all customers, repealing the possibility to deny any customer the right to choose their supplier. The Secretariat thus withdrew the related reasoned request submitted to the Ministerial Council for serious and persistent breaches of the Energy Community acquis (Case ECS-2/15).
Switching rules are part of the Rules for the Supply of Electricity and shall be revised in order to comply with requirements of the new Energy Law.
By September 2018, the Government has to initiate a tender procedure for the selection of a universal supplier and a supplier of last resort. The Law envisages the obligation of the selected supplier to establish a new legal entity to perform universal supply and supply of last resort.
According to the new Law, the regulator adopts a tariff system for the sale of electricity by the universal service supplier and the supplier of last resort, and defines criteria for the selection of a universal supplier. The selected supplier shall begin operation after the adoption of the rules regarding the purchase of electricity by the universal supplier, supply, tariff systems, market and balancing. The deadline for adoption of the new rules is 5 September 2018
A customer protection scheme has to be developed as defined by Annex I of Directive 2009/72/EC by January 2019, including the revision of the measures for protection of vulnerable customers currently in place.
As of 2017, interconnection capacities between North Macedonia and Greece are auctioned on a yearly, monthly and daily basis through SEE CAO.
As of March 2018, the transmission system operator is procuring services of a regional security coordinator, including coordinated capacity calculation, from the Security Coordination Centre (SCC).
The Memorandum of Understanding on electricity day-ahead market coupling between transmission system operators, national regulatory authorities and the power exchanges of Bulgaria and North Macedonia signed on 12 April 2018 envisages market coupling based on available transmission capacity and in compliance with requirements of multi-regional coupling (MRC) by mid-2019, subject to a previous go-live of the day-ahead market in North Macedonia. Ministers of North Macedonia and Bulgaria also signed a Memorandum of understanding in support of the project.
Development of cross-border balancing cooperation is pending the establishment of a national balancing market.
A set of Connection Network Codes has not yet been transposed despite the fact that the deadline expired on 12 July 2018.
The Law introduced the possibility for a supplier established in a Contracting Party or Party to the Energy Community Treaty to operate in the national market under the principle of reciprocity and in cooperation with the respective national authority where the supplier is established.
Customer protection and protection of vulnerable customers
Customer protection and protection of vulnerable customers
Measures for customer protection, in particular consumer rights as defined by Annex I of Directive 2009/72/EC, have not been transposed. Some principles of customer protection are defined in the Rules for the Supply of Electricity. This is not in compliance with the acquis. The notion of vulnerable electricity customer is not defined
by the Energy Law. The government offers monthly financial subsidies for paid energy bills to households belonging to a social protection scheme.
The obligations from Regulation (EU) 543/2013 are not transposed by the Energy Law, which provides only a general obligation for data transparency. There is no further secondary legislation in place.
In practice, a significant amount of the data required by the Regulation is available. Most of the data on network loads, capacity allocation and electricity generation are regularly submitted to the ENTSO-E Transparency Platform, whereas capacity allocation data on the interconnection with Greece are submitted to ENTSO-E by SEE CAO. Some data items are provided by MEPSO only upon request, subject to the national Law on Access to Information of Public Nature, which is preventing compliance with the Regulation (EU) 543/2013. Locally available are the data on load forecasts. No data on balancing and market performance are available as required by the Regulation.