Decision on tariff rates for non-eligible customers of electricity in Republic of Srpska

Number: R-19-666-175/07

Date: 21 December 2007

Pursuant to Article 23 line 4 of the Electricity law ("Official Gazette of Republic of Srpska" number 66/02, 29/03, 86/03, 111/04 and 60/07), Article 10 paragraph 1, point 4 of the Statute of the Regulatory Commission for Energy of Republic of Srpska ("Official Gazette of Republic of Srpska" number 41/04 and 67/07), Article 37, paragraph 1 line 3 of the Procedural Rules of the Regulatory Commission for electricity of Republic of Srpska ("Official Gazette of Republic of Srpska" number 96/04), Article 68, paragraph 3 of the Rule book on tariff methodology and tariff proceeding ("Official Gazette of Republic of Srpska" number 61/05) and Article 72 paragraph 1 of the Rule book on public hearing and settlement of disputes and complaints ("Official Gazette of Republic of Srpska" number 71/05), in the second tariff proceeding for approval of tariff rates for non-eligible customers of electricity in Republic of Srpska, Regulatory Commission for Energy of Republic Srpska in its 19th regular session which was held on 21 December 2007 made

DECISION

On tariff rates for non-eligible customers of electricity in Republic of Srpska

This Decision of the Regulatory Commission for Energy of Republic of Srpska (hereinafter RERS) provides prices of electricity, expressed through the tariff rates which serve for calculation and payment of electricity from non-eligible customers.

Tariff rates for non-eligible customers per categories of consumption and groups of customers were determined depending on the costs of generation, transmission and distribution of electricity which those categories and groups of customers cause by their method and time of consumption of electricity, respecting the principle of the gradual changes.

Tariff rates for electricity delivered to non-eligible customers of electricity in Republic of Srpska are as follows:

Description			Tariff rates for non-eligible customers of electricity
			Capacity charge		Active electricity		Excessively taken reactive electricity
Categories of consumption and groups of customers		Unit measure	BAM/kW/month		BAM/kWh		BAM/kVArh
		Season	HS winter	LS summer	HS winter	LS summer	HS (winter)	LS (summer)
Category	Name of the group	Part of the day
110 kV		HТ	1,4544		0,0806		0,0190
		LТ	-		0,0403		-
35 kV		HТ	3,9070		0,0773		0,0209
		LТ	-		0,0387		-
10 kV		HТ	6,1400		0,0812		0,0248
		LТ	-		0,0406		-
0,4 kV - other consumption	1 ТG	HТ	13,1900		0,0837		0,0355
		LТ	-		0,0418		-
	2 TG	MТ	4,1000	3,1600	0,1767	0,1360	-	-
	3 TG	HТ	4,1000	3,1600	0,2129	0,1638	0,0426	0,0284
		LТ	-	-	0,1065	0,0819	-	-
	6 TG	MТ	4,1000	3,1600	0,1130	0,0869	-	-
	7 TG	HТ	4,1000	3,1600	0,1362	0,1047	0,0426	0,0284
		LТ	-	-	0,0681	0,0524	-	-
0,4 kV - public lightning		MТ	-		0,1374		-
0,4 - households	1 TG	MТ	1,5800	1,2200	0,1126	0,0866	-	-
	2 TG	HТ	1,5800	1,2200	0,1357	0,1044	-	-
		LТ	-	-	0,0679	0,0522	-	-

Tariff rates stated in the table above do not contain the tax on added value.

III

The capacity charge for tariff groups of customers from the category of consumption at the voltage level of 0.4 kV which capacity charge is not determined by metering amounts to:

Other consumption 2 and 3 tariff group: 5 kW

Other consumption 6 and 7 tariff group: 7 kW

Households 1 tariff group: 3.3 kW

Households 2 tariff group: 5.2 kW

Licensees for supply of non-eligible customers with electricity may, for the groups of customers referred to in paragraph 1 of this line determine total monthly fee for the capacity charge and metering point of the customer which equals to the amount obtained by multiplying the capacity charge referred to in paragraph 1 of this line and accompanying tariff rate referred to in point II of this Decision and express in the fixed monthly amount per the metering point of the customer as follows:

Groups of customers	BAM monthly
	high season	low season
Other consumption 2 and 3 tariff group:	20,50	15,80
Other consumption 6 and 7 tariff group	28,70	22,12
Households 1 tariff group	5,21	4,03
Households 2 tariff group	8,22	6,34

Tariff rates in high season (HS) are applied in the period from 1 October to 31 March.

Tariff rates in low season (LS) are applied in the period from 1 April to 30 September.

High daily tariff rates (HT) are applied in the period from 6.00 to 22.00 hours for the winter time, i.e. 07.00 to 23.00 for the summer time.

Lower daily tariff rates (LT) are applied in the period from 22.00 to 06.00 hours for the winter time i.e. 23.00 to 07.00 hours for the summer time and for the weekend without interruption from Friday at 22.00 for the winter i.e. 23.00 for the summer time until Monday at 6.00 for the winter i.e. 07.00 for the summer time.

End users from the second and sixth tariff group in the category of "other consumption at low voltage" that are determined, by occasional metering, to have taken excessive reactive electricity, the calculation of the excessively taken reactive energy is carried out applying tariff rates for excessively taken electricity of the third, i.e. seventh tariff group from the category of consumption.

Licensees for supply of non-eligible customers with electricity are obliged to, in an appropriate way, publish tariff rates, relevant provisions of this Decision and tariff system and make them available to all non-eligible customers.

VII

This Decision becomes effective the eighth day upon its publication in the "Official Gazette of Republic of Srpska" and is applied for calculation of the electricity as of 1 January 2008.

VIII

The day this Decision is applied, Decision on tariff rates for non-eligible customers of electricity in Republic of Srpska ("Official Gazette of Republic of Srpska" number 27/06) is no more valid.

Rationale

Tariff rates for non-eligible customers are determined by allocating costs of generation of electricity, costs of the transmission network use (costs of Elektroprenos BiH, Independent System Operator in BiH and costs of providing ancillary services), costs of the distribution network use and costs of the electricity supply, on the categories of consumption and groups of customers and tariff elements, including season and daily period differentia.

The share of procurement costs of electricity in the tariff for non-eligible customers is determined on the basis of the average weighted price of electricity for non-eligible customers in the amount of 0.0518 BAM/kWh at the outlet of all plants in Republic of Srpska that participate in the supply of tariff customers in the public service obligation system. The share of generation of electricity for supply of tariff customers in the public service obligation system was determined on the basis of consumption of all tariff customers in Republic of Srpska and total generation in Republic of Srpska of all licensees for generation that were assigned that duty.

The share of costs of the distribution network use in the tariff for non-eligible customers in the amount of 126.091.461 BAM, consisted of the costs of the distribution capacity in the amount of 103.024.726 BAM and costs of losses of electricity in the distribution network in the amount of 23.066.735 BAM, were based on the Decision on determination of the price of electricity distribution Number 01-471-9/07 dated 21 December 2007.

The share of costs of the transmission network use in the tariff for non-eligible customers is determined on the basis of the unit prices determined by Decision on the State Regulatory Commission for electricity dated 19 December 2007 as follows:

- costs of the Elektroprenos BiH of 1.454 BAM/kW for the achieved peak capacity at the takeover places and 0.00566 BAM/kWh for the taken active electricity from the transmission network,

- costs of the Independent System Operator of 0.000399 BAM/kWh for the taken electricity from the transmission network,

- costs of providing reserve capacity for secondary and tertian regulation of 0.002188 BAM/kWh for the taken active electricity from the transmission network;

Costs of the transmission losses of 0.001881 BAM/kWh of electricity taken from the transmission network were determined on the basis of the approved losses of electricity in the transmission network and projected price of electricity for other (non-tariff) customers at the outlet of plants in Republic of Srpska.

The share of the costs of the services of supply in the tariff for non-eligible customers in the amount of 13.689.266 BAM was based on Decision on determination of the electricity supply price for non-eligible customers in Republic of Srpska number 01-471-10/07 dated 21 December 2007.

While determining tariff rates for end users from the category of household and category of "other consumption at low voltage" that are not metered the capacity charge, it was applied the principle of gradual changes in order to avoid sudden tariff changed in one tariff proceeding, in a way that the amount of the estimated cross-subsidies between the categories of consumption at low voltage was reduced for a half. In that way, harmonization of revenues based on the tariff rates for groups of end users and costs of electricity which particular groups of customers cause by consuming electricity shall be conducted in the transitional period as prescribed by provision of the Article 6 of the Rule book on tariff methodology and tariff proceeding.

Tariff design determined by this Decision is based on the provisions of Article 7 paragraph 2, 73 and 74 of the Rule book on tariff methodology and tariff proceeding.

Point VII of this Decision is based on the provisions of Article 33 paragraph 4 of the Electricity law and Article 21 of the Statute of the Regulatory Commission for Energy of Republic of Srpska.

President

Milenko Cokorilo