Decree No 575 / 2004 Coll.
Decree amending Decree No. 438 / 2001 Coll., laying down the content of economic data and procedures for regulating prices in energy, as amended by Decree No. 13 / 2003 Coll.
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Effective from 23.11.2004
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23.11.2004
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575
DECLARATION
of 10 November 2004
amending Decree No. 438 / 2001 Coll., determining the content of economic data and the procedures for regulating prices in energy, as amended by Decree No. 13 / 2003 Coll.
Pursuant to Section 98 (8) of Act No. 458 / 2000 Coll., on the Terms and Conditions of Business and on the Enforcement of Government Administration in the Energy Sector and on the amendment of certain laws (Energy Act), the Energy Act provides for the implementation of Section 17 (7) (f) of the Energy Act:
Decree No. 438 / 2001 Coll., establishing the content of economic data and procedures for regulating prices in energy, as amended by Decree No. 13 / 2003 Coll., is amended as follows:
1. in Article 2 (1) (a):
"(a) total losses in distribution electricity systems - the difference between the amount of electricity at the input to the distribution system and the amount of electricity at the output of the distribution system, reduced by the own consumption of the distribution system operator,";
2. in Article 2 (1) (c):
"(c) total losses in the distribution gas systems - the difference between the amount of natural gas energy at the input to the distribution system and the amount of natural gas at the output of the distribution system, reduced by the own consumption of the distribution system operator;"
3. In Paragraph 2 (1) (d), "rock 'is replaced by" rock'.
4. in Article 2 (1) (e):
'(e) total losses in the transmission system - the difference between the amount of electricity at the input to the transmission system and the amount of electricity at the output from the transmission system,';
5. in Article 2 (1), the word "industrial" shall be inserted at the beginning of point (f).
6. in Article 2 (1) (g):
"(g) efficiency factor - Authority-determined value by which the industrial escalation factor and wage escalation factor are adjusted,"
7. in Article 2 (1) (h):
"(h) a local gas distribution system - a distribution system which is not directly connected to the transmission system or has a number of connected final customers of less than 90 000 at the end of the calendar year,"
8. in Article 2 (1) (i):
"(i) the rate of return - the weighted average cost of capital expressed as a percentage and determined analytically by the Authority,"
9. in § 2 (1) (k):
"(k) authorised costs - costs without depreciation necessary to ensure the licensed activity, the starting value of which is determined analytically by the Office, '.
10. in Article 2 (1), points (l) and (m) are deleted;
Points (n) to (u) shall be renumbered as points (l) to (s).
11. in Paragraph 2 (1) (l), the word "entering" is replaced by "entering."
12. in Article 2 (1) (m), the words "(e)" shall be deleted;
13. in Article 2 (1) (n):
"(n) permitted total losses in distribution electricity systems - percentage of total losses in the distribution system in total electricity input to the distribution system, the total total losses being determined by the sum of the permitted technical losses in the distribution system and the permitted commercial losses corrected by the reduction of the commercial losses coefficient;"
14. in Article 2 (1) (o):
"(o) regional gas distribution system - distribution system connected to the transmission system,"
15. in Article 2 (1) (p):
"(p) the regulated year - the year for which the Office fixes the prices in a given calendar year,"
16. in Article 2 (1) (r):
"(r) tariff - Officially determined price of electricity supply or electricity price for different groups of protected customers and by the Office determined price for distribution at low voltage distribution level,"
17. in Article 2 (1) (s):
"(s) market opening factor - a factor taking into account the change in the permitted revenues determined in relation to market opening determined analytically by the Authority;"
18. in Paragraph 2 (1), the following points (t) to (z) are added:
"(t) sampling point factor - factor taking into account the change in the number of sampling points;
(u) coefficient of the sampling point factor - rate of effect of the sampling point factor determined analytically by the Authority;
(v) the wage escalation factor - the rate of influence of the wage escalation factor determined analytically by the Office;
(w) the reduction coefficient for the permitted level of trade losses - is the value by which the Authority regulates the permitted level of trade losses;
(x) correction factor for the activity of electricity distribution - a factor taking into account non-compliance by the Authority of the permitted revenues,
(y) correction factor for the gas supply activity - factor taking into account the difference between the actual and planned costs of purchasing natural gas;
(z) correction factor for the system service provision activity - a factor taking into account actual costs and revenues for system services. ';
19. In Article 2, the following paragraph 2 is inserted after paragraph 1:
"(2) For the purposes of this Order, the following definitions shall also apply:
(a) correction factor for the electricity transmission activity - a factor taking into account actual costs and revenues using transmission system facilities;
(b) correction factor for the activity of the transport or distribution of natural gas - a factor taking into account non-compliance by the Office of the Allowed Proceeds;
(c) wage escalation factor - factor taking into account the development of the average monthly industrial wage index,
(d) the permitted level of commercial losses - a percentage of the difference between total losses and technical losses in the electricity distribution system in the total amount of electricity at the distribution system,
(e) the permissible rate of technical losses - the percentage of technical losses in the electricity distribution system in total electricity input to the distribution system,
(f) authorised revenue - the proceeds from the licensed activity determined as the sum of the authorised costs, depreciation and profit; for electricity distribution broken down by voltage levels,
(g) variable costs - costs of covering total losses in transmission or distribution systems;
(h) the regulatory base of assets - the value of the assets necessary to ensure the licensed activity; the starting value of the asset base is determined analytically by the Authority;
(i) profit for the activity of the supply of electricity and natural gas - the value determined analytically by the Authority;
(j) profit for system service activities - the value determined analytically by the Authority;
(k) profit for the activity of the transmission of electricity, the distribution of electricity, the transport of natural gas and the distribution of natural gas - the value obtained by the product of the rate of return and the value of the asset base;
(l) change in depreciation value - annual change in depreciation, the value of which shall be determined analytically by the Office;
(m) change in the value of the regulatory base of assets - year-on-year change in the regulatory base of assets, the value of which shall be determined analytically by the Authority. ';
Paragraph 2 shall become paragraph 3.
20. In Article 3, the words "electricity sector 'are replaced by the words" electricity'.
21. in Paragraph 3 (1), "2002" is replaced by "2005."
22. in Article 3 (a), the words "paragraph 2" shall be deleted;
23. in Article 3 (1) (d):
"(d) the provision of system services; ';
24. In Article 3, at the end of paragraph 1, the dot is replaced by a comma and the following point (g) is added:
"(g) the supply of electricity to protected customers at low voltage distribution level.";
25. Paragraph 3 (2) is deleted and paragraph 1 is deleted.
26. Paragraph 4, including the title and footnote 3, reads as follows:
Method of regulation in electricity
(1) The methods of price regulation are laid down in accordance with the specific legislationm3 following § 3).
(2) The prices of activities under § 3 (c) to (g) are individual to each licence holder.
(3) The prices referred to in Article 3 (c) are determined in accordance with the procedure set out in Annex 1.
(4) The prices referred to in § 3 (d) are determined in accordance with the procedure set out in Annex 2.
(5) The prices referred to in Article 3 (e) are determined in accordance with the procedure set out in Annexes 3 and 4.
(6) The price for electricity transmission and electricity distribution at distribution voltage levels of very high voltage and high voltage consists of two components: prices for the reserved capacity of transmission system or distribution system facilities in CZK / MW and year or month and prices for the use of transmission or distribution system facilities in CZK / MWh.
(7) The price for distribution of electricity at the distribution voltage level of low voltage consists of two components: the price for the reserved capacity of the distribution system in CZK related to the nominal current value of the main circuit breaker before the electric meter and the price for the use of the distribution system in CZK / MWh.
(8) Prices for the distribution of electricity are cumulative, given that they also include a component related to the coverage of electricity transmission costs and to the distribution of electricity in adjacent distribution systems at a very high voltage voltage voltage level, a component related to covering part of the cost of higher voltage levels of the distribution system, a component related to the contribution for decentralised production and a component related to the contribution for the intermediary of payments.
(9) The prices for the activity referred to in § 3 (g) are determined in the form of tariffs in order to respect the average price of the activity concerned established by the Authority in accordance with the procedure set out in Annex 5 and to respect the relationship
IUPAC Name Chze,
where
Wpn is the weighting share of tariff n expressed in terms of the quantity of electricity supplied for tariff n and the total quantity of electricity supplied,
Cpn is the proposed tariff n,
Cchze is the average price of electricity supply for protected customers.
(10) The price to cover the additional costs associated with the purchase of electricity from renewable sources and from combined heat and electricity production sources and the procedure for the compensation of additional costs are determined in accordance with the procedure set out in Annex 6.
(11) The price referred to in Article 3 (1) (f) is determined in accordance with the procedure set out in Annex No 7.
(12) The cost of the contribution to the distribution networks for decentralised sources and the compensation procedure for contributions are determined in accordance with the procedure set out in Annex 8.
3) Act No. 526 / 1990 Coll., on Prices, as amended. '
27. Article 5, including the title and footnotes Nos 4 and 5, reads as follows:
Method of pricing and price changes in electricity
(1) The method of pricing electricity from renewable sources and cogeneration complies with the specific legislation4).
(2) The method of pricing referred to in Article 4 (3) to (5), (9) and (11) is laid down for the regulatory period by means of a regulatory formula the form and parameters of which established by the Authority pursuant to paragraph 4 remain unchanged throughout the regulatory period, unless otherwise provided by the Authority in the case of the provision of incorrect data by the licence holder.
(3) The regulatory period starts on 1 January 2005 and ends on 31 December 2009.
(4) The parameters of the regulatory formula which, with the exception of the change resulting from paragraph 2, remain unchanged throughout the duration of the regulatory period shall be determined by the Authority for the licence holder for the transmission of electricity no later than 7 months before the start of the regulatory period, for the licence holder for the distribution of electricity and for the market operator no later than 5 months before the start of the regulatory period of:
(a) the starting value of the authorised costs and the initial value of the depreciation of the relevant licensed activities; for electricity distribution activities broken down by voltage distribution levels,
(b) the starting value of the regulatory base of the assets of the licensed activities; for distribution activity broken down by voltage levels of distribution,
(c) the annual value of the efficiency factor;
(d) the permissible margin of loss margin for electricity transmission activity;
(e) the permissible level of technical loss;
(f) the permitted level of commercial losses;
(g) the reduction coefficient for the permitted level of trade losses;
(h) profit for system service activities;
(i) part of the auction revenue used to reduce the permitted electricity transmission revenues;
(j) wage escalation factor;
(k) the starting price for the assessment, clearing and settlement by the market operator.
(5) The parameters of the regulatory formula established by the Authority for the licence holder for the transmission of electricity no later than 7 months before the start of each regulated year and for the licence holder for the distribution of electricity no later than 5 months before the beginning of each regulated year are set out in:
(a) the rate of return for each licensed activity, whereby the value of return established with effect for the entire regulatory period is adjusted in each year only by any changes in the rate of income tax under the special legislature5);
(b) the pre-values of electricity collection and consumption for the calculation of the prices of the regulated year;
(c) the provisional price of power electricity for the purchase of losses in transmission and distribution systems;
(d) the market opening factor;
(e) the correction factor for each licence holder;
(f) the permitted distribution framework for the distribution of electricity;
(g) the authorised level of total losses in the transmission system;
(h) the change in the value of the regulatory base of the assets of each licensed activity; for distribution activity broken down by voltage levels of distribution,
(i) a change in the value of the depreciation of the TSO.
(6) Local distribution system operators
(a) use the prices and tariffs of the regional distribution system operator to which they are connected; or
(b) request the Authority to determine the individual permitted revenues and the authorised cost variables; in this case, a procedure similar to that applicable to regional distribution system operators shall be used for setting prices and tariffs, the parameters established by the Authority in accordance with paragraphs 4 and 5 being applicable to the relevant local distribution system operators. The Authority may, where justified, individually adjust the scope of the strictly necessary economic and technical data to determine the individual price according to the specific characteristics of the distribution systems of individual local distribution system operators.
(7) The Authority will, upon request by the local distribution system operator, provide pre-determined prices and tariffs for the regional distribution system operator to which it is connected.
(8) Individual regional distribution system operators shall submit to the Authority, by 30 April of each calendar year, and the electricity transfer licence holder, by 15 May of the calendar year preceding the regulated year, the data on the actual proceeds of the licensed activity in the last financial year ending, including the supporting documents for their verification, and the supporting documents referred to in Article 14.
(9) The proposal to change the price for the reserved capacity of transmission system equipment in CZK / MW and year, the proposal to change the price for the use of transmission system equipment in CZK / MWh and the proposal to change prices for system services shall be submitted by the holder of the electricity transfer licence by 30 June of the calendar year preceding the regulated year.
(10) The prices referred to in paragraph 9 shall be determined and communicated by the Office by 31 July of the calendar year preceding the regulated year to the transmission system operator and to the regional distribution system operators, including the other prices required for the calculation.
(11) Proposals for changing the cumulative price of electricity for the reserved capacity of distribution system facilities in CZK / MW and year and cumulative prices for the use of distribution system facilities in CZK / MWh for high voltage and high voltage distribution levels, as well as proposals for changing tariffs for a low voltage distribution system service for a regulated year, the proposal to change the price of electricity for protected customers, including the design of a tariff structure for each customer category for the first year of the regulatory period, justified by the necessary data and calculations, are submitted to the Authority's regional distribution system operators no later than 31 August of the calendar year preceding the regulated year.
(12) The prices referred to in paragraph 11 shall be fixed and communicated by the Office by 30 September of the calendar year preceding the regulated year to regional distribution system operators, local distribution system operators referred to in paragraph 7, upon request.
(13) Proposals for changing the cumulative price of electricity for the reserved capacity of distribution system facilities in CZK / MW and year and cumulative prices for the use of distribution system facilities in CZK / MWh for very high voltage and high voltage distribution levels, as well as proposals for changing tariffs for a low voltage distribution system service for a regulated year, the proposal for changing the price of the supply of electricity for protected customers including the design of a tariff structure for each customer category for the first year of the regulatory period, justified by the necessary data and calculations, are submitted by local distribution system operators in accordance with paragraph 6 (b). (b) not later than 15 October of the calendar year preceding the regulated year.
(14) The prices referred to in paragraph 13 shall be determined and communicated by the Office by 15 November of the calendar year preceding the regulated year to local distribution system operators.
(15) Proposals for price changes for the activities of a market operator for a regulated year, justified by the necessary data and calculations, are submitted by the market operator of the Authority by 30 June of each calendar year preceding the regulated year.
(16) The prices referred to in paragraph 15 shall be fixed and communicated by the Office by 31 July of the calendar year preceding the regulated year to the market operator.
(17) The tariffs and prices applied in the framework of the licensed activities referred to in Article 3 are determined with effect from 1 January of the relevant regulated year by the Authority's pricing decisions by 30 November of the calendar year preceding the regulated year.
4) Decree No. 252 / 2001 Coll., on the method of purchasing electricity from renewable sources and from cogeneration.
5) Act No. 586 / 1992 Coll., on Income Tax, as amended. '
28.
Verification of regulatory results and determination of correction factors in electricity
The correction factors in electricity shall be as set out in Annex 9. ';
Article 29 (7) shall be deleted, including the title.
30.
Activities with regulated gas prices
(1) Since 1 January 2005, the prices of the following activities are regulated:
(a) the transport of gas;
(b) gas distribution
1. regional distribution system operator,
2. operator of the local distribution system.
(2) Until the gas market is fully opened, the price of gas supply is regulated:
(a) the relevant licence holders who supply gas to protected customers connected to regional distribution systems;
(b) protected customers whose equipment is connected to a regional distribution system;
(c) protected customers whose equipment is connected to the transmission system;
(d) protected customers whose equipment is connected to the local distribution system.
(3) Since 1 January 2005, prices of other gases supplied to final customers are regulated. "
31. Paragraph 9, including the title and footnote 6, reads as follows:
Method of regulation in gas
(1
(2) The prices referred to in Article 8 are fixed for each licence holder.
(3) The prices referred to in Article 8 (1) (a) are determined in accordance with the procedure set out in Annex 10.
(4) The prices referred to in Paragraph 8 (2) (a) are determined in accordance with the procedure set out in Annex No 11.
(5) The prices referred to in Article 8 (1) (b) (1) are determined in accordance with the procedure set out in Annex 12.
(6) The prices referred to in Article 8 (2) (b) are determined in such a way as to respect the average price of the relevant activity established by the Office in accordance with the procedure set out in Annex 13 and to respect the relationship
↔ (Wpkzn x Cpkzn) ≤ sdzdrink,
where
Wpkzn is the weight share of the price of the product or service n expressed by the share of the planned amount of natural gas supplied by the relevant licence holder to the protected customers at the price of the product or service n and the total amount of natural gas supplied by the relevant licence holder to the protected customers,
Cpkzn is the proposed price of the product or service n,
sdzdrink is the average price of the supply of the unit quantity of natural gas to the licence holder concerned.
(7) The prices referred to in Article 8 (2) (c) are determined in accordance with the procedure set out in Annex No 14.
(8) The basic categorisation of protected customers within the meaning of Article 9 (6) is laid down in a separate legislation6). The categorisation of protected customers in excess of this specific legislation shall be subject to the approval of the Office.
6) Decree No. 329 / 2001 Coll., laying down the conditions for connection and supply of gas to protected customers. '
32.
Method of pricing and price changes in gas
(1) The method of pricing referred to in Article 9 (3) to (7) is laid down for the regulatory period by means of a regulatory formula the form and parameters of which established by the Office pursuant to paragraphs 3 and 4 shall remain unchanged throughout the regulatory period, unless the Office provides otherwise for the provision of incorrect data by the licence holder.
(2) The regulatory period starts on 1 January 2005 and ends on 31 December 2009.
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Regulation Information
| Citation | Decree No. 575 / 2004 Coll., amending Decree No. 438 / 2001 Coll., establishing the content of economic data and procedures for regulating prices in energy, as amended by Decree No. 13 / 2003 Coll. |
|---|---|
| Regulation Type | Order |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 23.11.2004 |
|---|---|
| Effective from | 23.11.2004 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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