TSOs certification

Transportgas is a limited liability company, whose founder and sole shareholder is the Republic of Serbia, and whose main field of activity is the transport of natural gas. The control by the Republic of Serbia over Transportgas is exercised through the Republic Commission for Energy Networks. Transportgas applied for certification as an independent system operator (ISO) on 25 July 2024.

In its Preliminary Decision, AERS concluded that Transportsgas complies with Article 14 of the Gas Directive.

In Opinion 3/24, the Secretariat raises several concerns, for example regarding the compliance of the transmission system owner with the requirement of legal unbundling under Article 15(1) of the Gas Directive and with the some of the system owner’s obligations in Article 14(5) of the Gas Directive.

EMS is a joint stock company and its founder and the only shareholder is the Republic of Serbia. The owner’s rights are exercised by the Government.

In the period after the Secretariat issued its negative Opinion 3/17 on the AERS Preliminary Decision concerning the certification of EMS with a finding that separation of control within the State has not taken place even in its most basic requirement, the designation of two public bodies, and before the adoption of the Final Decision of AERS, the Serbian Parliament adopted amendments to the Law on Ministries. Article 4 of the Law on Ministries, specifying the competences of the ministries were amended in a way that two different public bodies (Ministers) were given right to preparing “proposals for acts on appointment and dismissal of management bodies” of EMS on the one hand and of the companies performing activity of production and supply of electricity and gas. On the one hand, the Secretariat’s Opinion was not made on the same set of facts and laws as AERS’ Final Decision. On the other hand, the Final Decision on the basis of new legislation raises a number of issues on which the Secretariat had no opportunity to give its Opinion to AERS and which seem to require a more in-depth against the Electricity Directives provisions on ownership unbundling. Therefore, the Secretariat submitted to AERS a request for re-opening the certification procedure pursuant to Article 10(4)c) of the Electricity Directive, to which AERS responded negatively and failed to reassess compliance of EMS with the unbundling criteria despite the changed legal framework.

Joint Stock Company NOMAGAS, the gas transmission system operator in the Republic of North Macedonia, is the result of a merger between two companies, National Energy Resources AD Skopje and GA-MA AD Skopje in 2022.

On 22 January 2024, the Energy and Water Services Regulatory Commission of the Republic of North Macedonia concluded that NOMAGAS can be certified under the ownership unbundling model.

On 21 May 2024, the Secretariat issued Opinion 1/24, in which it largely supports the certification of NOMAGAS in line with the Preliminary Decision. In its Opinion the Secretariat recommended that, in the future, the functions of transmission system operator and market operator are performed by two different entities, not only by NOMAGAS, thus ensuring an additional layer of oversight in the market.
 

MEPSO was certified as a TSO on 15 August 2019. On 24 July 2025, the Ministry of Transport and Communications transferred its shares in MEPSO to the Ministry of Energy, Mining, and Mineral resources as a sole shareholder. On 4 August 2025, the shares of MEPSO were registered to the Ministry of Energy in the Central Securities Depository of the Republic of North Macedonia. The change of ownership triggered the new certification procedure.

On 29 December 2025, ERC adopted and notified to the Secretariat its Preliminary Decision on the certification of MEPSO subject to the opinion of the Secretariat. In the Preliminary Decision, ERC concluded that MEPSO complies with the requirements of the provisions on ownership unbundling.

In its Opinion, the Secretariat identifies several instances of incompliance with the ownership unbundling model and suggests regulatory and corporate amendments that would remedy them. In issuing its final opinion on certification, ERC must take the outmost account of the Secretariat’s Opinion.
 

MEPSO is an electricity TSO, established in a form of Joint Stock Company and its sole shareholder is the Ministry for Transport and Communications.

Upon a positive opinion by the Secretariat, the Energy Regulatory Commission has unconditionally certified MEPSO under the Ownership Unbundling Model.

Ukrenergo is a state-owned joint stock company, and the ownership of the state was exercised by the Ministry of Finance under economic management rights. With the amendments to the Electricity Market Law of April 2021, the ISO unbundling model has been transposed (in addition to the ownership unbundling model) and Ukrenergo submitted second application for certification under this model. In its Preliminary Decision, NEURC came to the conclusion that Ukrenergo can be certified preliminarily, but conditioned final certification on a number of measures to be taken and evidence to be submitted by the applicant. In its Preliminary Decision, NEURC stated that “in case of change of circumstances on the basis of which the previous decision on certification of the TSO was made, in particular, change of the transmission system owner or corporate rights management body of the state in the authorized capital of Ukrenergo, NEURC shall inform the Energy Community Secretariat and has the right to cancel the previous decision on certification of the transmission system operator and start a new certification process.”

On 28 July 2021, the Cabinet of Ministers of Ukraine adopted a Resolution and transferred the authority to manage corporate rights and the state property (based on economic management rights granted to Ukrenergo) owned by the state in Ukrenergo from the Ministry of Finance to the Ministry of Energy. Such transfer entails a change in control over the TSO as well as a change in the function of the transmission network owner.

On 17 December 2021, Ukrenergo was conditionally certified under the ISO model. In its final decision, NEURC took into account the Secretariat’s requests and recommendations from its Opinion 4/21. The Secretariat had raised concerns about Ukrenergo’s financial viability, and about interventions by state authorities in the corporate bodies of the transmission system operator (TSO). In the meantime, a supervisory board with a majority of independent members has been appointed. According to the final decision, the Ministry of Energy as shareholder of Ukrenergo, will also have to continue its internal restructuring meant to ring-fence the TSO from political decisions, and to propose solutions addressing the risks to the company’s liquidity.

Ukrenergo is a state-owned joint stock company, and the ownership of the state is exercised by the Ministry of Finance under economic management rights.

The Secretariat has issued a negative opinion on the NEURC’s preliminary decision for certification of Ukrenergo, concluding that Ukrenergo cannot be certified according to the ownership unbundling model, since one of the main criteria – ownership of the transmission assets by the TSO - is not fulfilled. Namely, Ukrenergo exercised only economic management right over the transmission assets, meaning that it neither owns the transmission assets nor has other rights equivalent to an owner over those assets. Taking into account the Secretariat’s Opinion, NEURC adopted a final decision rejecting the certification of Ukrenergo under the ownership unbundling model in April 2021.

KOSTT is an electricity transmission system operator, established as a joint stock company. It is in public ownership and the shareholding rights are exercised by the Assembly of Kosovo.*

The Secretariat has supported the certification of KOSTT in line with ERO’s Preliminary Decision, recommending additionally appointment of Compliance Officer and the adoption of Compliance Program, and further requesting from ERO to assess and elaborate on the matters related to separation of control and the relations between KOSTT and the Government, the Ministry of Economic Development and the Ministry of Finance. In its Final Decision, ERO has taken into account the Secretariat’s opinion and has certified KOSTT unconditionally requiring an appointment of a Compliance Officer and adoption of a Compliance Program in the period of 6 months of adoption of the Final Decision.

With the adoption of a Compliance Program and appointment of a Compliance Officer, the conditions from ERO’s final certification decision of KOSST have been fulfilled.

Two companies in Bosnia and Herzegovina are active in the electricity transmission: NOS BiH Sarajevo, acting as an independent system operator and operating competitive balancing market and JSC Elektroprenos Banja Luka (also called TransCo), acting as a transmission operator. Both companies are controlled by the entities’ governments that are also responsible for operation of the public generation and supply utilities. Elektroprenos is 100% owned by the two entities: Federation of BiH 58.90% and Republika Srpska 41.10%. The authority exercising the rights of the owners is the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina, whereas for NOS BiH no shares are issued.

There is no legal framework transposing the Third Energy Package in Bosnia and Herzegovina governing unbundling of the electricity transmission system operator(s). The draft Law on Regulator, Transmission and Electricity Market and the complementary law on the establishment of a transmission system operator for electricity, both aiming to transpose the Third Package at the state level, are prepared, but have not been adopted so far.

GSE is the State-owned TSO for electricity in Georgia and the State’s shares of GSE are represented by the Ministry of Economy and Sustainable Development. After the merger with the fully State-owned Energotrans, GSE owns and operates also the transmission assets previously operated by Energotrans. In January 2021, GSE concluded a lease agreement with Sakrusenergo, a company that holds another transmission license issued by GNERC, and the shares of which are owned 50% by the State of Georgia, represented by the Ministry of Economy and Sustainable Development, and 50% by the Federal Grid of the United Energy System JSC registered in the Russian Federation.

In its Opinion, the Secretariat concluded that GSE is currently not unbundled in line with the ownership unbundling model as required by Article 9 of the Electricity Directive. In addition to asking GNERC to assess several issues in more detail, it required GNERC to include a statement in the operative part announcing the opening of a recertification procedure for the assessment of compliance by GSE with the unbundling criteria, once the conditions imposed by the Final Decision are fulfilled, including a request for a new Opinion by the Secretariat.

GNERC took into account the Secretariat’s Opinion and gave a deadline to GSE to comply with the conditions from the Final Decision by 31 December 2021. GNERC also included a statement in the operative part of the decision, pointing out that after submission of the required documents proving compliance with the unbundling criteria, GNERC will re-open the certification procedure and will submit another Preliminary Decision to the Secretariat for an opinion.

GSE is the State-owned TSO for electricity in Georgia and and the State’s shares of GSE are represented by the Ministry of Economy and Sustainable Development. After the merger with the fully State-owned Energotrans, GSE owns and operates also the transmission assets previously operated by Energotrans. In January 2021, GSE concluded a lease agreement with Sakrusenergo, a company that holds another transmission license issued by GNERC, and the shares of which are owned 50% by the State of Georgia, represented by the Ministry of Economy and Sustainable Development, and 50% by the Federal Grid of the United Energy System JSC registered in the Russian Federation.

In its Opinion, the Secretariat agreed with GNERC’s assessment from the Preliminary Decision and its conclusions that GSE does not comply with the unbundling provisions enshrined in Article 9 of the Electricity Directive. Most notable, GSE is still directly and indirectly controlled by the same public body controlling also the public companies active in generation and/or supply of natural gas or electricity.

GNERC took into account the Secretariat’s Opinion and refused certification of GSE. It gave a deadline to GSE to comply with the conditions from the Final Decision by 1 August 2022 and to notify GNERC of fulfilling those conditions by 8 August 2022. GNERC also included a statement that GSE will be fined with 10% of its annual turnover for 2021 in case of non-compliance with the requirements of the Decision.

CGES is a joint stock company, owned by several shareholders: the State of Montenegro (55 %), Italian electricity TSO Terna S.p.A. (cc. 22.1%); Serbian electricity TSO, Elektromreže Srbije-EMS (10 %), custodial accounts, funds and other legal persons (5.3 %) and natural persons (7.5%).

The transmission system operator was conditionally certified by the national regulatory authority in 2018, following the Secretariat’s positive Opinion. The conditions to appoint a compliance officer and to initiate amendments to the Energy Law or an enabling regulation to ensure the separation of control, in order to exclude the influence of the Ministry of Finance on the decisions of the Government when it comes to proposing the members of the management bodies as state capital representatives in the EPCG and Montenegro Bonus, have been fulfilled. The amendments of the Energy Law have been adopted and with that all conditions from the final decision have been complied.

Moldelectrica is a state-owned enterprise under Moldovan law. Its Founder, the Ministry of Energy, is the sole shareholder of the company and exercises the functions and attributions of the State as an owner. With the amendments to the Electricity Law in February 2022, the ISO unbundling model has been transposed (in addition to the ownership unbundling model) and Moldelectrica submitted its second application for certification under this model.

In its Preliminary Decision, ANRE came to the conclusion that Moldelectrica can be certified preliminarily as an independent system operator.

In its Opinion 02/2023, the Secretariat raised concerns about potential conflicts of interest between persons and institutions engaged in transmission activities, on the one hand, and persons and institutions engaged in supply and generation activities, on the other. To address this, the Secretariat requested ANRE to introduce a number of additional safeguards before issuing the Final Decision. Among others, the Secretariat requests that a supervisory board with a majority of independent members is established in Moldelectrica after the expiry of the current members’ mandates.

Upon a positive opinion by the Secretariat, ANRE  has conditionally certified Moldelectrica under Independent System Operator Model.

Moldelectrica is a State enterprise and its founder is the Ministry of Economy and Infrastructure, which performs the functions of the State as an owner.

On 11 October 2019, the Secretariat issued a negative opinion on Preliminary Decision on certification of Moldelectrica because the conditions on separation of control and ownership over transmission were not fulfilled. In particular, Moldelectrica does not own the transmission assets, which is one of the conditions for certification under the ownership unbundling model. In addition, both Moldelectrica, and the Public Property Agency (which exercises direct control over the state companies involved in generation and supply activities of electricity and gas), were directly controlled by the same public body, the Ministry of Economy.

Final Decision has not yet been adopted by ANRE. It expected to be completed after the transposition of the Independent System Operator in the Law on Electricity.