Albania has approved the certification of its Transmission System Operator for Electricity (TSO), Medreg, 26 July 2017

The Albanian Energy Regulatory Authority (ERE) has recently approved the certification of the country’s Transmission System Operator for Electricity (TSO), which constitutes a significant progress towards unbundling and the implementation of the Third Energy Package in Albania. It also places the TSO as a key player in the Albanian and Euro-Mediterranean market.

On 15 March 2017, the Albanian Energy Regulatory Authority Board of Commissioners approved the final certification of the ownership unbundling of the Albanian TSO for Electricity, according to the Law on the “Power Sector” and following the application submitted in July 2016 by the company to the Energy Regulatory Authority.

In October of last year, the Energy Regulatory Authority approved the preliminary certification of the Transmission System Operator, with the conclusion that it fulfilled all the obligations stipulated in the “Power Sector Law” no. 43/2015 which transposes the provisions of Directive 2009/72 / EC and Regulation (EC) No 714/2009.

In January 2017, the Secretariat of the Energy Community (an international organisation which brings together the European Union and its Eastern neighbours to create an integrated pan-European energy market) expressed a positive opinion on the certification of the Albanian TSO, “OST”, with regards to the application it had submitted, its supporting documentation and preliminary decision of ERE.
More recently, the Energy Community supported the TSO certification in conformity with ERE Preliminary Decision, provided that ERE imposes additional requirements on the TSO. Within the next 12 months, the TSO should:

implement a compliance programme and appoint a compliance officer;
provide evidence that the Ministry of Energy can no longer propose the approval (or rejection) to the Council of Ministers of any new interconnectors to be constructed by OST, by virtue of adequate primary or secondary legislation;
provide evidence that the Ministry of Economy only retain the power to issue opinions concerning the network development plan to ERE, by virtue of adequate primary or secondary legislation.

This decision represents an important step for the Albanian TSO, which also became a full member of the European Network of TSOs for Electricity (ENTSO-E). Indeed, the establishment of a certified TSO reinforces the stability, competitiveness and transparency of the Albanian Energy Market, enabling a non-discriminatory access to the network.

MEDREG welcomed this news, as this certification contributes to one of the key objectives of the Association, which is the setting up of a predictable and safe regulatory framework that can attract investors and traders, to the benefit of Albanian consumers and of the overall economy.

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the editor at the “info@albaniaenergy.org”.