The right to access electricity in rural areas 

Sonja Maria Protic, MScInstitute of Public Social Responsibility, Vienna, Austria

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

OVERVIEW

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

National Legislation

National Primary Law

National Secondary Law

EU Legislation

EU Primary Law

EU Secondary Law

Implementing Legislation at Federal State Level

EU-LEGISLATION (1)

Energy supply is a service of general public interest (SGI)

SGIs: Services, which are subject to public regulation to meet public needs

Services can be split into those with and those without economic interest:

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

SGNEIs

Services of general non economic interest

SGEIs

Services of general economic interest

Market liberalisation Public Service Obligations (PSO)

Specified and realized by the Member States

EU-LEGISLATION (2)

Additional Protocol 26, Treaty on the Functioning of the European Union:

„[...] a high level of quality, safety and affordability, equal treatment and the promotion of universal access and of user rights.“

Directive concerning common rules for the internal market in electricity (2009/72/EC), Art. 3:

“Member States shall ensure that all household customers [...] enjoy universal service, that is the right to be supplied with electricity of a specified quality within their territory at reasonable, easily and clearly comparable, transparent and non-discriminatory prices. [...]

[...] Member States [...] shall take measures to protect final customers in remote areas.“

Principle of subsidiarity Differences among the Member States in terms of quality level, sectors concerned, organisation and terminology

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

AUSTRIAN LEGISLATION (1)

Federal Act Providing New Rules for the Organisation of the Electricity Sector (ElWOG 2010 [Electricity Act 2010])

§ 5. Public Service Obligations

”(2) The implementing legislation shall provide that the following public service obligations be imposed upon electricity undertakings in the general economic interest:

1. to perform the obligations imposed upon them by law in the public interest; [...] ”

The implementing legislation implements those issues in greater detail (e.g. they name a BASIC SUPPLY of public household customers.)

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

AUSTRIAN LEGISLATION (2)

§ 77. Suppliers of Last Resort

“(1) Electricity traders and other suppliers whose function includes supply to household consumers [...] shall be obliged, at their general terms and conditions in force and at these rates, to deliver electricity to consumers [...] that claim their right to be supplied with electricity (obligation to provide universal service). [...]

(2) The rates for supply of last resort to consumers as defined in § 1 para. 1 item 2 Consumer Protection Act may not exceed the rates at which most of their customers that are consumers in the meaning of § 1 para. 1 item 2 Consumer Protection Act are supplied. [...] ”

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

GERMAN LEGISLATION

Energiewirtschaftsgesetz (EnWG 2005 [Energy Act 2005])

§ 36 Grundversorgungspflicht

„(1). [...] Die Pflicht zur Grundversorgung besteht nicht, wenn die Versorgung für das Energieversorgungsunternehmen aus wirtschaftlichen Gründen nicht zumutbar ist.“

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

CROATIAN LEGISLATION (1)

Zakon o tržištu električne energije (8. veljače 2013. godine)

Članak 5. Interes Republike Hrvatske

„(2) Osiguravanje dostatne proizvodnje i isporuke električne energije potrebne za život i rad građana te poslovanje i razvoj gospodarskih i društvenih subjekata i njihova opskrba električnom energijom na siguran, pouzdan i kvalitetan način, po realnim cijenama, kao i energetski razvoj, od interesa je za Republiku Hrvatsku.“

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

CROATIAN LEGISLATION (2)

Electricity supply of household customers is an universal service obligation (Art. 61)

Članak 48. Opskrba električnom energijom u okviru univerzalne usluge

“(1) Kupci u okviru univerzalne usluge moraju biti opskrbljeni električnom energijom propisane kvalitete koja se naplaćuje sukladno tarifnim metodologijama. [...]

(3) Vlada Republike Hrvatske i Agencija će osigurati raspoloživost univerzalne usluge na cijelom području Republike Hrvatske i uzeti u obzir opskrbljivače sa značajnim udjelom na tržištu električne energije u Republici Hrvatskoj u pogledu broja krajnjih kupaca i prodaje električne energije.”

Law of Energy (Zakon o energiji, 2012): Vulnerable customers (Članak 39)

The definition of a vulnerable customer does not include customers in remote regions. The criteria for achieving the status of a vulnerable customer relate to the level of income and health problems or disability.

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

COMPARING LEGISLATION

EU-legislation underlines the importance of providing all customers with access to electricity, but does not recommend concrete implementation strategies

The implementation - due to the principle of subsidiarity – is a responsibility of the Member States

Compared with Austria, Croatia puts a lower emphasis on the right to access electricity (in rural areas)

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

STUDY - ISOLATED SUPPLY SYSTEMS (1)

The study (in cooperation with UNDP Croatia) came up with a methodology to financially compare isolated grid solutions to an extension of the public electricity network for remote areas in Croatia.

An isolated grid supply proves to be very often an economically preferable option to supply remote regions with electricity even in the case of short distances between the potential region and the existing grid.

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

STUDY - ISOLATED SUPPLY SYSTEMS (2)

Question:

Why not support the establishment of self-sufficient regions in Croatia?

Article 3, Directive concerning measures to safeguard security of electricity supply and infrastructure investment (2005/89/EC) refers to the importance of distributed generation:

  “1. Member States shall ensure a high level of security of electricity supply by taking the necessary measures to facilitate a stable investment climate [...]

(3) In implementing the measures referred to in paragraph 1, Member States may also take account of:

[...]

(c) the importance of encouraging energy efficiency and the adoption of new technologies, in particular demand management technologies, renewable energy technologies and distributed generation”

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

CONCLUSION

Croatian Energy Strategy

„The goal is to enable an equal quality of energy supply on the Croatian territory. It is specially related to availability of networked energy forms, i.e. electricity [...] in remote regions, such as islands and disclosed rural areas.“

Problem: Lack of investment in rural electrification projects due to investment barriers

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Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013

A FRAMEWORK WITH AN EXTENSIVE SET OF MEASURES IS NECESSARY TO FACILITATE RURAL ELECTRIFICATION PROJECTS IN WB

Local cooperatives could offer an attractive alternative to public sector mangement or to principally profit-orientated private sector involvement

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THANK YOU FOR YOUR ATTENTION!

Sonja Maria Protic, MScInstitut für Public Social Responsibility, Vienna, AustriaEmail: sonjamariaprotic@gmail.com

Sub-Regional Conference on Sustainable Energy in South East Europe Zagreb, Croatia, 10 December 2013