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

Pursuant to Article 23, line 3 of the Law on electricity (“Official Gazette of RS” No.: 66/02, 29/03, 86/03 and 111/04), Article 10 paragraph 1 point 3 of the Statute of the Regulatory Commission for Electricity of Republic of Srpska “Official Gazette of RS” number 41/04), Article 37, paragraph 1 point 3 of the Procedural Rules of Electricity Regulatory Commission of RS (“Official Gazette of RS” no. 96/04), Articles 49, 73 and 74 of Rule on Tariff Methodology and Tariff Proceedings  (“Official Gazette of RS” no 61/05) and Article 72 paragraph 1 Rule on Public Hearings and resolution of Disputes and Complaints (“Official Gazette of RS” no. 71/05), in the tariff proceedings for approval of the price at the outlet of the plant, for determining of tariff rates for users of distribution system and tariff rates for non-eligible buyers of electricity in Republic of Srpska, Regulatory Commission for Electricity of Republic of Srpska in its 28 regular session held on March 22, 2006 made a

DECISION

on tariff rates for non-eligible customers

of electricity within Republic of Srpska

I

The Regulatory Commission for Electricity of Republic of Srpska (hereinafter REERS) by this Decision determines the prices of electricity, expressed through tariffs for calculation and collection of payments for electricity.

The tariff rates for non-eligible customers per consumption category and customer groups are determined based on the costs of generation, transmission and distribution of electricity caused by these categories and consumer groups by their manner and time of consumption of the electricity, with respect to the principle of gradual changes.

II

The tariffs for supplied electricity for non-eligible customers of electricity within Republic of Srpska are as follows:
  

III

The billing demand for the first tariff period is determined for following groups of customers from the consumption category on 0.4 kV voltage level with no capacity measurement:

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

The power companies – license holders for performance of the activity of supply of non-eligible customers with electricity and activity of distribution of electricity may, for the groups of customers from the paragraph 1 of this point, determine the total monthly fee for a billing demand and the measuring point of a customer that is equal to the amount which is the result of multiplying the billing demand from paragraph 1 of this point and the associated tariff from paragraph 2 of this Decision and will be shown in a fixed monthly amount per customer as follows:

IV

The tariffs within the high season (HS) will be applied in the period of October 1^st to March 31^st. The tariff rates within the low season (LS) will be applied in the period of April 1 to September 30.

Higher daily tariffs (HT) will be applied in the period from 06,00 am – 10,00 pm for winter, i.e., from 07:00 am to 11:00 pm within the summer.

Lower daily tariffs (LT) will be applied in the period from 10:00 pm – 06:00 am within the winter calculation of time, i.e., from 11:00 pm – 07:00 am within the summer time, and within the weekend constantly from Friday at 10:00 pm (11:00 pm) to Monday at 06:00 (07:00) am.

V

The power companies, licensees for the performance of electricity supply for non-eligible customers are obliged to publish the tariffs in an appropriate manner, relevant provisions of this Decision and tariff system and make them available to all non-eligible customers.

VI

This Decision shall become effective on the day of its issuance and will be published in the “Official Gazette of Republic of Srpska”, on the bulletin board and web page of REERS, and will be applicable as of April 1, 2006.

Statement of Rationale

The tariffs are determined by the allocation of electricity generation electricity costs, distribution costs and supply costs, costs of transmission and losses in the transmission network, operation costs of the ISO and costs for provision of ancillary services to the consumption categories and customer groups and tariff elements, including seasonal and daily differentiation.

The share of electricity generation price in the tariff for non-eligible customers is determined based on average weighted price for non-eligible customers in the amount of 0.04669 KM/kWh of electricity at the outlet of all plants of generation companies within the Republic of Srpska which participate in the supply of non-eligible customers pursuant to their public service obligations.  The share of each generation company in Republic of Srpska for supply of tariff customers within the public service obligation, which is used for determination of the tariffs for non-eligible customers, will be determined as an equal proportional share of total production of each generation company, which will provide for supply of all tariff customers within Republic of Srpska in the amounts determined by the Power Balance for 2006 of Republic of Srpska.  

The participation of the costs of utilization of the distribution network in the tariff for non-eligible customers is the amount of 112.587.641 KM, which consists of the costs of distribution capacity in the amount of 92.226.596 KM and the costs of electricity losses in the distribution network in the amount of 20.361.045 KM, as determined by the Decision on tariffs for users of the distribution systems of the Regulatory Commission for Electricity of Republic of Srpska number 01-1437-3/06 dated on March 22, 2006.

The participation of the price for utilization of the transmission network for non-eligible customers is determined based on the unit price of 0.0098 KM/kWh for accepted active power from the transmission network, as determined by the Decision of the State Regulatory Commission for Electricity in BiH, number 04-28-248-37/05, dated March 21, 2006.

The participation of the price for service of the ISO in the tariff for non-eligible customers is determined based on the unit price of 0.000343 KM/kWh for accepted active energy from the transmission network, as determined by the Decision of the State Regulatory Commission for Electricity of BiH, number 04-28-232-33/05, dated December 28, 2005.

The participation of excessively taken reactive energy in the tariff for non-eligible customers is determined based on the calculation of the State Regulatory Commission for Electricity of BiH of the price of 0.00852 KM/kVArh for the total overly accepted reactive energy from the transmission network.

The share of costs for the provision of capacity reserve for secondary regulation in the tariff for non-eligible customers has been determined based on calculation of the State Regulatory Commission for Electricity of BiH in the amount of 1.383-516 KM, i.e., 0,000415 KM/kWh of accepted active energy from the transmission network.

The price of the supply services is determined in the amount of 15 KM per final customers annually, i.e., 1,25 KM per customer on monthly base for all non-eligible customers, and 0,25 % of total costs of supplied electricity for the costs of contracting, contract administration and payment transactions for final customers on mid and high voltage level from the consumption category on 110 kV, 35 kV, 10kV (20kV, 6kV). The prices of supply service in the tariff for non-eligible customers are allocated to tariff elements billing demand and active energy.

While determining the tariffs for end users from the household group and the group called other consumers with no measurement of capacity, the principle of gradualism has been applied with the introduction of changes for the purpose of avoiding drastic changes of tariffs during one tariff proceeding. Harmonization of revenues based on the tariffs for groups of final customers and costs of electricity incurred by individual groups of customers by consumption of electricity shall be implemented in the transitional period in a manner that provides the application of the principle of gradual changes.

Point VI of this Decision, in the part which related to the effectiveness, shall be based on the provision of Article 33 paragraph 4 of the Law on electricity, in the part related to the publication based on the provisions of Article 34 of the Law on electricity.

Number: 01-1517-7/06

Date: March 22, 2006

Trebinje

The President

Milenko Cokorilo