First Meeting of CAREC Members Electricity Regulators Forum

The first meeting was convened at the request of CAREC countries to establish a network of electricity regulators to enhance their regulatory capacity and continue their knowledge exchange.

The meeting examined approaches, challenges, and successes in electricity regulation to support capacity development for improved regulation and regulatory support of power sector reforms in CAREC countries. Participants discussed the formal establishment of the CAREC Members Electricity Regulators Forum (CMERF) and identified potential study topics in electricity regulation for program year 2005-2006.

Meeting Outputs

A. Approaches, Challenges, and Success in Electricity Regulation
Participants discussed the findings of the diagnostic review of regulatory approaches and challenges in CAREC countries. A key message was that CAREC countries need to enhance their capacities for electricity regulation and gain more insight from the successes achieved by neighboring countries.

B. Formal Establishment of CMERF
Delegates unanimously endorsed the draft memorandum of understanding (MOU) to formalize the establishment of CMERF. The MOU provides that CMERF should have a governing body composed of principal and alternate members from CAREC countries and a secretariat initially within ADB.

The final signing of the MOU was proposed for the next CAREC Senior Officials’ Meeting (SOM) in Kyrgyz Republic on 12-14 October 2005.

C. Potential Study Topics for Program Year 2005-2006
Delegates endorsed participation in the following studies proposed by ADB for a regional technical assistance project and grant.

• Designing and approving efficient and adequate tariff structures appropriate to different consumer categories, and involving lifelines, reliability premiums, discounts for pre-payment, and/or wattage limitations. Countries: Mongolia (lead) and Tajikistan.
• Appropriate pricing of ancillary services. Country: People’s Republic of China (PRC)
• Risk sharing under power purchase agreements (PPAs). Countries: Kazakhstan (lead), PRC, and Kyrgyz Republic.
• Possibilities and pitfalls in the privatization of distribution companies. Countries: Kyrgyz Republic (lead), Mongolia, and Azerbaijan.
• Costs and input requirements of power utilities across member countries. Countries: all CMERF countries