Montenegro: Regulator proposes closed distribution system

, SEE Energy News

Owner of infrastructure systems will be enabled to build distribution infrastructure that will serve for the distribution of electricity.

The Energy Regulatory Agency (RAE) initiated public hearing regarding Draft rules for determining the status of the closed distribution system.

REA explained that closed distribution system should transpose the relevant European directives relating to the general rules for the internal electricity market. According to the directive, closed distribution system is justified in cases where the optimum efficiency of integrated energy supply that requires specific operating standards needs to be ensured, as in the event when the system is used primarily by the owner and  related entities.

RAE has invited interested parties to participate in the hearing and contribute to the adoption of the act, and posted 11 May on its website as a deadline for the opinions, comments and suggestions.

Determining the status of the closed distribution system is done at the request of the owner of the distribution infrastructure that serves to distribute electricity to geographically limited economic, commercial or shared services system. Thus the owner of any of these systems will be enabled to build distribution infrastructure that will serve for the distribution of electricity for the needs of, primarily, these economic systems, and it is done without license.

Rules are that closed distribution system operator supplies users of the system and concludes a contract with them, and as additional condition it is stipulated that annual consumption of customers from the category of households residing in the territory covered by the closed distribution system may not have the participation of more than 20 percent of the total annual consumption of all users of that system

Rules establish what constitutes a decision on status definition, the manner of the amendment of decision and conditions to revoke status. Rules determine obligation, i.e. manner of payment for determination of compensation while the issue of determining these amounts is governed by a separate methodology, transmits