CLIENT
DfID / Energy Regulatory Agency (ERA) of the Republic of Montenegro
TITLE
Team Leader
COUNTRIES
Montenegro
DATES
2001-2004
SECTOR
Electricity
PROJECT DESCRIPTION
The Government of Montenegro (GOM) was seeking to develop a regulatory framework for privatized water, telecom and electricity companies in Montenegro. The establishment of such a regulatory framework was to ensure that: (i) the utilities would not exploit their monopoly position to charge excessive prices or offer low quality services; (ii) utility management has sufficient incentives to ensure efficient production, and (iii) the utilities expand production to under served areas. The UK Department for International Development (DFID) funded this project to advise on the design of regulatory framework for the energy sector.
SERVICES PROVIDED BY STRATEGY & ECONOMICS
Strategy & Economics acted as Project Manager in this DFID funded project targeted at establishing the Energy Regulatory Agency (ERA) as an effective regulator of the energy industry in Montenegro. Our work focused principally on:
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Wholesale market design
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Sector unbundling
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Setting tariffs and developing tariff procedures for the Agency
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Creating an effective licensing regime
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Developing dispute resolution procedures
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Enhancing the content of technical codes underlying industry operation.
The development of the Agency is an integral part of a strategy to restructure and introduce private sector participation into the industry.