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Annual Report 2011
His Excellency Mahmoud Abbas
President of the Palestinian National
Authority
Dr.Salam Fayyad
Prime Minister
Chairman of the Board SpeechSince the establishment of the Palestinian Energy and Natural Resources Authority (PENRA) in 1995 the energy sector in Palestine began to change drastically through the development of general policies, improvement plans, and development plans for the sector, because of this, there has been rehabilitation and electrification of the areas that were not connect-ed to the electricity grid before, which made a significant change in the electricity sector as the ratio of populated areas connected to the electric-ity grid has exceeded the 99% and hundreds of development plans have been carried out on the grid resulting in a better living standards to our people through the quality of electric service provided and the decrease of electricity technical losses.
In parallel PENRA proceeded to lay the foundations to reorganize the in-stitutions working in the electricity power sector through the issuance of the electricity law in the year 2009 which specifies the responsibilities of each party operating in the sector, as well as defining the mechanism to manage this sector through the establishment of electricity distribution and electricity transmission companies. Those companies are re-sponsible for carrying out the general policies and orders issued by PENRA. The law also stated the estab-lishment of a regulatory council for the electricity sector with the utmost priority of monitoring everything that is related to the generation, transmission and distribution, along with monitoring the execution of the general policies of PENRA.
Accordingly and on February 2010 a decree was issued to establish the Electricity Regulatory Council and the founding Board of Directors members were appointed from the public sector, private sector, and from the consumer’s protection.
Since then, the council issued decisions and an order regarding regulating the electricity sector in Palestine, one of the key decisions taken by the council was to rectify the situation of municipalities and local councils and companies through getting a company license, and merging all of the municipalities into companies.
The first unified tariff was issued on the 20th of June 2011 and was applied to all electricity distribution companies and municipalities that distribute electricity, in addition to many documents regarding the es-tablishment of the regulatory council, rules and regulations for licensing electricity distribution companies, organizational structure and many others.
The council has also issued the distribution license, and signed two licenses to the Jerusalem District Elec-tricity Company, and the Northern Electricity Distribution Company
To ensure consumer’s rights and companies’ rights, the regulatory council issued complaint and dispute solving procedures, as well as approving the unified complaint form that is to be given to all of the distribu-tion companies.
We expect the year 2012 to be an important year in completing the establishment of the regulatory council and the establishment of companies working in the electricity sector, particularly the electricity transmis-sion company, and establishing a private electricity generation company which is to be responsible for building the first electricity generation plant in the West Bank, also there will be concentration over issuing the needed regulations and rules to organize and ensure the independence of the renewable energy in Pal-estine, in addition to working on rationalizing the electricity consumption and working to prevent wasting electric energy and to increase the efficient and effective usage of the available energy sources.
Dr. Omar Kittaneh
Chairman of The Board
Chief Executive SpeechAccording to the Palestinian National Authority plan to re-organize the electric power sector in Palestine, President Mahmoud Abbas issued res-olution to Law No. 13 concerning the General Electricity Law 2009. This resolution defined the Palestinian National Authority’s vision to re-struc-ture the electric power sector in Palestine through the separation and specification of authorities for the Palestinian Energy Authority, this was through developing policies and general rules concerning the develop-ment of the electricity sector. In addition, the resolution referred to the creation of the electric power sector organization and identification of its authorities of regulating and controlling all activities relevant to the elec-tricity sector including: electricity generation, transmission, distribution and consumption that ensures availability, continuity of best quality and lowest prices. Also, the resolution addressed establishing companies for generation, transmission and distribution of electric power and identified their authorities regarding implementing policies and general rules concerning the development of this sector.
The orientation of the Palestinian authority regarding the separation of authorities, was the establish-ment of regulatory council to do the supervision and regulation for this sector. Where Mr. President has issued a decree to establish and appoint the Board of Directors’ members for this Council.
Since the establishment of the Council, many instructions and by laws were issued regarding regulat-ing the electricity sector, of the most important: licensing, assets evaluation, rectifying instructions for distribution companies and municipalities. The Council also issued a distribution license model and granted a distribution license for each of the Jerusalem District Electricity Company and Northern Electric Distribution Company in addition to issuing a methodology for calculating the tariff, common tariff and electrical connection fees and services. The council regulated the mechanism of merging municipalities into NEDCo. Still, the work is in progress to implement organizational efforts that would ensure consumers and companies benefits, quality of service provided and resolving disputes be-tween businesses and consumers.
I expect to achieve concrete achievements at the level of organizing the electricity sector side by side with achieving the administrative capacity of the council, where we started the appointment of pro-fessional staff who will handle its responsibilities with honesty and professionalism.
Finally, I hope prosperity for our beloved homeland. Bring freedom and independence for our Palestin-ian state and Jerusalem as its capital.
Eng. Zafer Milhem
CEO, PERC
Board of Directors
Dr. Omar Kittaneh
Chairman of the Board
Mr. Omar Sharkieha
Representative of Ministry of Lo-cal Government
Mrs. Maha Abu Issa
Representative of Consumer Protection in the Ministry of National Economy
Representative of Private Sector
Mr. Yousef Al ZoumorVice Chairman of the Board
Representative of the Ministry of Finance
Mr. Mohammad AL Ahmad
Legal
Mr. Zaher Alhmouz
Representative of Private Sector
Vision
Regulating the sector in order to
reach a modern and regulated
Palestinian electricity sector. Serv-
ing the Palestinian community
and protect their rights to obtain
a safe electrical energy service,
uninterrupted and at affordable
prices without prejudice and with
balancing the interests of produc-
ers, transmitters and distributors of
electric power.
Mission
PERC will insure that customers of regulated utilities receive safe, adequate and reliable service at just and reasonable rates, matching interests between customers and companies working in the electricity sector on the basis of justice. Also PERC will fos-ter competition where appropriate.The council will also execute electricity sector regulations with accuracy and efficiency that is based on transparency, justice and openness.
Objectives
• Reviewing and monitoring electricity tariff application.
• Reviewing and monitoring the issuance of the licenses needed for electricity generation,
transmission and distribution.
• Encouraging competition and prohibiting monopoly in electricity generation and distribu-
tion activities.
• Reconciling disputes between customers and companies.
• Providing all stakeholders of the electricity sector with the information needed to provide
services in the best manner.
• Increasing public awareness regarding elements of the electricity sector.
• Monitoring all electricity sector activities (generation, transmission and distribution) ensur-
ing their availability and sustainability in providing service requirements with appropriate
prices while preserving the environment and taking the interests of electricity consumers
and electricity generation, transmission and distribution companies into consideration.
Acronyms
PNA
PERC
PENRA
NEDCO
JDECO
SELCO
HEPCO
GEDCO
KWh
MWh
GWh
MVA
KV
MW
Palestinian National Authority
Palestinian Electricity Regulatory Council
Palestinian Energy and Natural Resources Authority
North Electricity Distribution Company
Jerusalem District Electricity Co Ltd
Southern Electricity Company
Hebron Electric Power Company
Gaza Electricity Distribution Company
Kilo Watt Hour
Mega Watt Hour
Giga Watt Hour
Mega Volt Ampere
Kilo Volt
Mega Watt
List of Graphs and Charts
Organizational structure
Institutional structure of the electric power sector
Sales and purchases of NEDCo for 2011
Sales and purchases of SELCo for 2011
Sales and purchases of HEPCo for 2011
Sales and purchases of JDECo for 2011
Sales and losses as a percentage of purchases for 2011
Percentage of consumers for companies in the West Bank
Electricity companies concession area in West Bank
Tariff Table
Connection Fees Table
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Table of contents
Introduction .................................................................................................. 1
Palestinian Electricity Regulatory Council (PERC) ..................................... 2
Establishment and Legal Status ............................................................................................... 2
Duties and Responsibilities ...................................................................................................... 2
Management ............................................................................................................................. 2
Organizational and Administrative Structure ........................................................................ 3
Electricity Sector in Palestine ....................................................................... 5
Quick Overview ......................................................................................................................... 5
Development of Electricity Sector ........................................................................................... 5
Generation ................................................................................................................................. 7
Transmission ............................................................................................................................. 7
Distribution ............................................................................................................................... 7
PERC’s Achievements .................................................................................. 13
Organizing and Managing the Council .................................................................................. 13
Rectifying Status of Parties Operating in the Electricity Sector ......................................... 13
Transferring Authority from Municipalities to Distribution Companies ............................ 13
Licensing .................................................................................................................................. 14
Tariff and Connection Fees ..................................................................................................... 14
Customer Care ......................................................................................................................... 19
International Relations ........................................................................................................... 19
Computing ............................................................................................................................... 19
Codes ....................................................................................................................................... 20
Workshops and Meetings ....................................................................................................... 20
Renewable Energy .................................................................................................................. 21
Conclusion ........................................................................................... 22
IntroductionThe President and the Board of Directors, and PERC employees are pleased to submit the first annual report of the Palestinian electricity Regulatory Council (PERC) to update you on the most important achievements and activities of the Council during the years 2010 and 2011. This report provides a clear identification of the reality of the electricity sector in Palestine in order to understand the existing chal-lenges and achievements required.
In line with the decision-Law No. 13 of the General Electricity Law and upon the recommendation of Palestinian Cabinet, President of Palestine issued a decree to appoint the members of the Board of Di-rectors of the Palestinian Electricity Regulatory Council announcing the start of reorganizing the elec-tricity sector in Palestine, through the formation of a council to regulate and to monitor all activities of the electricity sector; generation, transmission, distribution and consumption. To ensure the provision of electric power and the continuity to meet the requirements of the various uses at reasonable pric-es while preserving the environment and taking into account the interests of consumers, producers, transmitters and distributors of electrical energy, and work to prevent monopoly in all the activities of generation and distribution in the power sector.
Through this report we will state the most important achievements made by the Council during the past two years. Members of the Board of Directors held 33 meetings, during which many decisions have been approved and implemented which focused on the status of the organizational structure and rules of procedure, work plan and annual budget of the council. The council also worked to acti-vate the integration of municipalities in the northern West Bank in the Northern Electricity Distribution Company, and issue instructions to rectify the status of municipalities and companies operating in the distribution of electric power. In addition to legislation, laws and regulations that govern the work of the council and the licensing of companies, the council approved the tariff methodology and tariff method of calculation.
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Palestinian Electricity Regulatory Council (PERC)
Establishment and Legal Status
PERC was established through a Presidential Decision issued on the 23/4/2009, in accordance with Ar-ticle (5) of Law no. (13) Of 2009 regarding the General Electricity Law, as a financial and administrative independent institution.
Duties and Responsibilities
The Duties and competencies of PERC listed in the Electricity Law are as follows:
• Monitor the activities of generating, transmitting, distributing & selling of electrical power with-in the framework of abiding by laws, rules & regulations in force.
• Setting the conditions to ensure fair competition regarding generation and distribution activi-ties of electrical power to guarantee the interests of the consumers.
• To ensure that the cost of production, transmission and distribution of the electrical power pro-tects the interests of all the concerned parties in the electrical sector.
• To ensure the quality of the provided technical and administrative services by the distribution companies to the consumers.
• To monitor the implementation of the agreements concerning generation, transmission, distri-bution & sales.
• To create a database containing all the technical, financial & statistic information and publish it according to the instructions issued by PENRA for that purpose.
• Recommend to PENRA to set the electricity tariff, subscription fees, extension costs, insurances & other services needed to connect consumers with the electrical current.
• Recommend to PENRA to accept or deny licenses and to renew, withdraw or to give up licenses from generation & distribution companies submitting applications to that end.
• To monitor the compliance of the licensed generating & distributing companies with the condi-tions set forth in the licenses.
• To work on resolving disputes between distribution companies and customers, and between electricity sector companies with each other in order to maintain the public interest.
Management
PERC is managed by a Board of Directors consisting of seven members with expertise and competency in Electricity and Power issues. The board is headed by the Chairman of PENRA for the founding stage and the Board of Director shall include representation from the Ministry of Finance, Customer Protec-tion, Ministry of Local Government, two representatives of the Private Sector and a legal representative.
PERC is managed by an Executive Chairman who has expertise, competence and high efficiency.
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Organizational and Administrative Structure
Administrative organization consists of several departments as follows:
• Tariff Department: Prepares the needed information and analyzes it to adjust the electricity tariff and follow up on electricity distribution companies to ensure that information are served in the appropriate time, in addition to conducting periodic and administrative audits over com-panies to ensure high operational competencies and ensure their compliance with the official tariff.
• Consumers affairs Department: Receiving the complaints of the consumers, verify them, and develop a complaint system facilitating the methods of connecting the public to the council in addition to develop the advertising materials and the initiatives concerned with educating the consumers, the department is also responsible for developing the web page of the council and participate in preparing and publishing all PERC reports.
• Licensing, Monitoring, and Compliance Department: Prepare and execute the licenses pro-cedures including designing and publishing the forms, also the process of giving licenses in ad-dition to monitoring the license conditions and implimentation.
• Administration and Financial Department: Sets the system and policies for the administrative and financial tasks and their execution to facilitate other departments to perform their tasks, ful-fill their goals, supervise the administrative and financial position, and follow up on the financial affairs and the employees affairs.
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(1) Organizational structure
Board of DirectorsChairman & 6 Members
Office ofMedia Relations
Tariff Department
Licensing,Monitoring &ComplianceDepartment
ConsumerAffairs Department
Administration &Financial
Department
Executivechairman
ExternalLegal Advisor
secondary reporting link contract or outsourcing
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Electricity Sector in Palestine
Quick Overview
The most distinctive characteristic of the energy sector in Palestine is the scarcity of locally available resources and the inability to fully utilize the available ones, making it heavily dependent on imports from Israel. In addition, the continuity of the Israeli occupation and its control of the borders, passage-ways and much of the area led to block a lot of plans and programs prepared by the National Authority Institutions operating in the energy sector for the advancement of the sector.
Development of Electricity Sector
The energy sector in Palestine depends, at the present time, on external energy sources except for a small percentage of electrical energy that is being produced through an electricity plant, which covers part of Gaza’s electricity needs. As the average rate of consumption is very low compared with other neighboring countries. Therefore, PENRA responsible for developing the energy sector in Palestine has implemented several programs to develop the energy sector such as the rehabilitation and expansion of distribution networks and the implementation of rural electrification projects, electrifying more than 98% of Palestinian villages, and other programs to rehabilitate and develop the energy sector in Palestine. In addition to developing an action plan to rebuild the basic components of the energy sec-tor in Palestine. The general goal for this plan focuses on:
• Ensure the independence of the sources of power supply in Palestine.
• Diversification of energy sources, that includes regional interconnetion with neighboring coun-tries, and building power plants.
• Establish a fair approach to determine tariffs and prices.
• Improve and develop the distribution system and reduce losses.
• Provide an encouraging environment for the private sector to invest in the energy sector.
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(2) Institutional structure of the electric power sector
Palestinian Energy and Nat-ural Resources Authority
PEC..................................................................
PERC
Policy maker
Generation IPPObserver & Regulator
PETEL
Transmission Owner
JDECOHEPCOSELCONEDCOGEDCO
Distribution
PENRA
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Generation
The national strategy for the energy sector includes many projects presented in building generation plants in Palestine and includes the increase of the generation capacity of the Gaza Electricity Genera-tion plant and the delivery of natural gas to it.
Transmission
According to the law number (13) for the year 2009 a national electricity transmission company is under formation, the transmission company will be fully owned by the Palestinian Authority and will carry the following tasks:
1. Transmission of electric power from the electricity generation companies to the electricity dis-tribution companies and to the electricity consumers who are provided with a power voltage higher than 36 kV.
2. Exporting and importing electricity from and to Palestine through connecting the grid after signing the relevant agreements by the PENRA, all relevant agreements are submitted to the approval of the Minister’s Cabin.
To facilitate the operations of the transmission company. The transmission company will own and be responsible for the maintenance and development of the national grid in addition to building new substations and expanding the current substations whenever needed, it is also responsible for pur-chasing electricity from different sources and selling it to the electricity distribution companies
Distribution
Northern Electricity Distribution Company (NEDCo)
NEDCo was established officially in January of 2008, and began its work in July of 2010 by joining elec-tricity departments in the municipalities of Nablus and Jenin in September of the same year.
Until December 2011 the total number of municipalities that joined NEDCo reached 33 municipalities.
The number of consumers of NEDCo reached 80.000 consumer, representing 40% of the total number of consumers in the six Northern provinces (Nablus, Tulkarm, Jenin, Salfit, Qalqilya, Tubas) located in the company’s concession.
The company has a single source of power of 6 connection points on medium voltage, and a capacity of 108 MVA from the Israeli Electricity Corporation (IEC).
The company works to merge the rest of the municipalities and village councils, almost 270 located in the concession area. Then, the number of consumers will reach 200,000 consumers.
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Below is a graph of sales and purchases of NEDCo for 2011:
(3) Sales and purchases of NEDCo for 2011
Southern Electricity Company (SELCo)
SELCo was established officially in 1998, and began its actual work in March 2004 in a partnership of five municipalities established with the Ministry of Local Government as a representative of the rest of municipalities; (Yatta, Dahriya, Dura, Beit Umar, and Halhul). The company actually began its services in four municipalities, where Halhul actually feed from HEPCo. The municipality of Beit Umar quit the partnership in 2005 followed by the municipality of Dura in 2011. Currently, the company has 3 mu-nicipalities.
The company’s concession area is fully located in Hebron province, excluding the area of HEPCo, the number of consumers belonging to SELCo is about 13.000 consumers representing 22% of the total number of consumers in the company’s concession area.
The company has a single source for power of 3 connection points on medium voltage, and a capacity of 13MVA from the Israeli Electricity Corporation (IEC).
The company aspires to join the rest of the municipalities and village councils, almost 75 located in the concession area bringing the number of consumers to around 55,000 consumers.
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(4) Sales and purchases of SELCo for 2011
Hebron Electric Power Company (HEPCo)
HEPCo was established in 2000, and began its actual work as a registered company in 2005 to service the city of Hebron, and the City of Halhul.
The number of consumers belonging to the HEPCo is 35,000 consumers. The company has a single source for power of 5 connection points on medium voltage, with a capacity of 89 MVA, from the Israeli Electricity Corporation (IEC).
(5) Sales and purchases of HEPCo for 2011
Jerusalem District Electricity Company (JDECo)
JDECo was established officially in 1914.
The number of consumers of JDECo are 215.000 consumers fall in the company’s concession area lo-cated in the four central provinces (Jerusalem, Ramallah, Bethlehem, Jericho).
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The company has two sources for power. The first source of 37 connection points on medium voltage, and a capacity of 480 MVA from the Israeli Electricity Corporation (IEC), and the second source of a single connection point, with a capacity of 20MVA from Hashemite Kingdom of Jordan.
(6) Sales and purchases of JDECo for 2011
Losses percentage in Distribution companies
The average percentages of total electric power losses in the four distribution companies is about 26%, reaching 688.4 GWh in 2011.
The following shows the sales and losses as a percentage of purchases:
(7) Sales and losses as a percentage of purchases for 2011
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Percentage of consumers for companies in the West Bank
Still 31% of the total number of consumers in almost 305 municipalities and village councils, of which 230 located in NEDCo’s concession area, and 75 other bodies located in SELCo’s concession area, are not bounded to any distribution company.
(8) Percentage of consumers in Dist. Companies
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(9) Electricity Companies Concession Area in West Bank
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PERC’s AchievementsSince its establishment, PERC began implementing the objectives assigned to it. Most importantly, setting and implementing organizational framework for the electric energy sector, which includes rectification instructions for the current situation and fundamentals of licensing, in addition to the issuance of a unified tariff. The council accomplished a number of important achievements in the fol-lowing areas:
Managing and Organizing the Council
• Approving the bylaw of PERC, which contains procedures for the mechanism related to decision-making, public participation, confidentiality of information, consumer complaints and dispute resolution. The bylaw also includes a review of expansion plans for the sector, sector investment and providing customers with services.
• Approving the regulation for benefits and financial rights for the President and the Board of Directors’ members of PERC.
• Approving the organizational and managerial structure of the Council.
• Appointing an executive chairman and key managers for PERC’s departments and some em-ployees.
• Approving the first annual budget for the Council.
• Approving the Employees manual and the payroll scale.
Rectifying Status of Parties Operating in the Electricity Sector
• Issuing instructions for municipalities and village councils to rectify its status in accordance with the resolution No. (13) Of 2009 regarding the general law of electricity.
• Issuing instructions for distribution companies in order to rectify its status, according to the law and regulations issued in this regard.
Transferring Authorities from Municipalities to Electricity Distribu-tion Companies
• The Council issued instructions regarding the transfer of electricity distribution authorities from municipalities and village councils to the distribution companies established.
• Issuing instructions regarding municipalities fundamentals of contribution. The first phase will be a transition phase in order to compensate municipalities for the fact that municipalities are no more a provider, and until the advancement of distribution companies and its ability to dis-tribute profits to shareholders. In the second phase, the contribution of municipalities in the companies will be calculated on the bases and criteria specified in the instructions, this will be completed through a consulting firm, which evaluates the assets and determine the contribu-tion percentage of municipalities in the companies.
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• Approving an agreement Form for the transfer of distribution electricity authorities from the municipalities to electricity distribution companies
• The council issued instructions regarding abdicating the connection points with the Israel elec-tric company, and moving them from the municipalities to the benefit of electricity distribution companies.
• Issuing instructions regarding asset evaluation standards
• Signing the contract concerning the transfer of electricity distribution authorities from a num-ber of municipalities such as: Municipality of Nablus and municipality of Jenin, and village coun-cils such as: Yamoun villages, Kufor Dan and Azmut … etc to NEDCo.
Licensing
• The council issued licenses’ fundamentals bylaw for companies operating in the electricity sector.
• The council adopted a distribution license model.
• Granting the distribution license to JDECo after approval on 24/3/2011.
• Granting the distribution license to NEDCo after approval on 10/2/2011.
• The council approved the expansion of JDECo concession.
• Work is in progress to issue licenses for each of HEPCo and SELCo.
Tariff and Connection Fees
In the past, the electricity tariff used to be imposed by companies and municipalities without relying on legal authority and without referring to tariff methodology that takes into account companies and consumers interests at the same time. For this reason, the electricity tariff varied between cities, vil-lages and companies. In many cases, the difference in tariffs doubled, noting that the source of electric power is one for all.
Hence the role of the PERC which approved an electricity tariff methodology based on the cost of service.
Accordingly, the Council recommended PENRA to adopt an electricity tariff for all companies, where a specific tariff has been proposed for each company operating in the electric power distribution field. Accordingly, this tariff was based on society segments in order to provide support for low-income community groups. Based on the Palestinian cabinet guidance, tariff for all companies has been uni-fied taking the least tariff for all groups. Also, the government endorsed to provide additional financial support for companies, which led to a significant reduction in all tariffs for all tariff categories and segments, especially the productive sectors such as the industrial sector and the agricultural sector. Also, this support would be an incentive for companies to improve their services, especially to reduce technical and non-technical losses as well as to improve the collection rate of consumers. Note that this support will decrease gradually over four years.
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Residential and commercial consumers tariff
The Council adopted a residential tariff based on the society segments in order to provide support for low-income community groups. Also, the Government approved to provide additional support for companies, which resulted in a significant reduction in residential and commercial tariff.
The following table shows residential and commercial electricity tariff according to the Palestinian cabinet decision on 20 \ 06 \ 2011 including all increases to the purchase price from the source:
Tariff NIS/kWhSector/Segment of the Tariff
0.4751
0.5234
0.5487
Residential (post paid/Traditional Meter)
From 1 – not less than 100 kWh monthly
From 101 – not less than 200 kWh monthly
More than 200 kWh
10Fixed cost
0.4751
0.5234
0.5487
Residential (Prepaid Meter)
From 1 – not less than 100 kWh monthly
From 1 – not less than200 kWh monthly
More than 200 kWh
0Fixed cost
0.537
Residential (Prepaid Meter)
Until the ability to apply society segments
0Fixed cost
0.5899
Commercial
Commercial traditional (post paid) meter
20 NIS/MonthFixed Cost
0.5794
Commercial (Prepaid Meter)
Commercial, Prepaid
10 NIS/ MonthFixed Cost
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Tariff of Industrial and Agricultural Consumers
Additional government support has been approved for productive sectors (industrial and agricultural sectors) for their importance in building the Palestinian economy and development. The following table shows the electricity tariff for industrial and agricultural consumers according to the council of ministers and after the rise in purchase prices from the source:
Tariff
NIS/kWhSector/Segment of the Tariff
0.4954
Traditional (post paid) Industrial
Industrial
30 NIS/MonthFixed Cost
0.456
Medium Voltage Consumers
Medium Voltage Consumers 33,11,6.6 KV
120 NIS /MonthFixed Cost
0.4750
Agricultural
Agricultural
10 NIS / MonthFixed Cost
Street Lightening, Water pumping and temporary services electricity tariff
A unified tariff was approved for these society segments. The following table shows the tariff for these society segments according to the council of ministers decision and after the rise in purchase prices from the source:
Tariff
NIS/kWhSector/Segment of the Tariff
0.5359
Water Pumping
Water pumping
30 NIS /MonthFixed Cost
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0.4735
Street Electrifying
Street Electrifying
10 NIS / MonthFixed Cost
0.7616
Temporary Services
Temporary Services
20 NIS/ MonthFixed Cost
0.7616
Prepaid temporary services
Prepaid temporary service
10 NIS/ MonthFixed Cost
Tariff for consumers connected to the Jordanian network
A special tariff has been adopted for areas linked with the Jordanian network to reflect the unit price of energy purchased from Jordan plus the losses, operating expenses and maintenance. This tariff seg-ments also reflect the high rate of consumption of the region. Only two society segments instead of 3 segments, acknowledging that the first segment of 1-500 kWh and the second segment of more than 500 kWh. The following table shows this tariff according to the Council of Ministers decision and the high purchase price from the source by 16%
Tariff
NIS/kWh
Sector/Segment of the Tariff
According to the council of ministers decision
0.3596
0.4176
From 1 – not less than 500 kWh monthly
More than 500 kWh
Connection Fees
The council approved the connection and services fees. It was published in local newspapers on 11.14.2011, as shown in the table below
The following fees will be collected from single – phase and three – phase consumers as shown in the following table:
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Description Fees (NIS)
1. Single-phase meter
1.1 Application fee of: a new subscription, or increasing the ca-pacity, or transferring of subscription 70
1.2Fee of installation, and connecting a new subscription to
the meter 150
1.3Fees of technical inspection (extensions) after the first de-
tection 50
1.4 Single-phase contribution fees Per Ampere 32 Am-pere= 1056 NIS))
1.5 Transferring meters (within a building)fees 50
1.6 Meter switching fees 50
1.7 Meter checking fees (if intact) 50
1.8 Cut off power supply request fees 70
1.9 Reconnect power supply fees 70
1.10 Waiver of a single-phase service fees 50
2. Three-Phase Meters
2.1Application fee for: a new subscription, or increase the ca-
pacity, or transfer of subscription 70
2.2Fees of installation and connecting a new subscription to
the meter 450
2.3Fees of technical inspection (extensions) after the first de-
tection 150
2.4 Three-phase contribution fees *100 per Ampere (32 Ampere = 3200 NIS)
2.5 Transferring meters (within a building) fees 150
2.6 Meter checking fees (if intact) 150
2.7 Cut off power supply request fees 210
2.8 Reconnect power supply fees 210
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2.9Fees of installation and connecting a new subscription to
the meter 50
3. Temporary Meters
3.1 Installation and connecting fees for a single-phase meter
3.2 Connecting and installation fees for a three-phase meter
In case of the subscriber’s need for installation of a substation with different levels (33/11, 6.6/0.4) the subscriber will bear 10%, added to the single-phase and three-phase contribution fee.
• A meter must be installed for each service.
• Do all participants who need more than 32 Ampere, install 3 phase service.
Customer Care
• Releasing to the press and announcing in local newspapers the date on which the Council starts receiving consumer complaints and inquiries.
• The Department of Consumer Affairs has received, verified and solved the complaints. The Coun-cil has made advancement in resolving conflicts and reaching appropriate solutions to satisfy all sides through conversations or phone calls to the concerned parties.
• Council has approved and issued consumer complaint procedure also unified complaint form has been issued.
• Start designing and developing a comprehensive web page to facilitate communication be-tween the council and the consumers, where, now consumers can submit their complaints and access to information concerning the PERC and the Palestinian electricity sector
International Relations
Visited and meet with some regional and international organizations in Egypt, Jordan, and Austria. Also, PERC is a member of the Arab Forum for the organizers of the electricity and infrastructure, and a member in the Association of the Mediterranean Regulator for Electricity and Gas (MEDREG) and its emanating committees.
Computing
In the process of establishing the infrastructure for a computerized integrated system through infor-mation system, that is linked to distribution companies and to the system of follow up on complaints and resolve them with relevant authorities.
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Codes
Underway to prepare distribution grid code, grid transmission code, metering code, performance in-dicators and safety standards.
Workshops and Meetings
During the previous period the council held several meetings and workshops to acquaint the Council, its objectives and in particular explaining the creation of companies and the act of transferring author-ities from municipalities to distribution companies in North and South West-Bank. The most important of these meetings and workshops were :
• Two workshops with local authorities in north and south West Bank so as to inform them with the decisions regarding the transfer of authorities from local authorities to distribution compa-nies, and update them with the instructions regarding rectifying municipalities status during a specific period of time.
• A workshop with commercial and industrial activities and community events affecting the city of Nablus. This workshop was about the transfer of electricity authority from the municipality of Nablus to NEDCo, where PERC’s chairman addressed the importance of working through a com-pany and the benefits that will be reflected on the city’s various economic sectors.
• Hold regular meetings with NEDCo’s Board of Directors in order to facilitate the transfer of elec-tricity authorities from the municipalities to the company.
• Conduct meetings with distribution companies and municipalities in order to introduce PERCs objectives and work procedures.
• A workshop with commercial, industrial activities and community events affecting the city of Jenin. This workshop was about the transfer of electricity authorities from the municipality of Jenin to NEDCo, where PERC’s chairman addressed the importance of working through a com-pany and the benefits that will be reflected on the city’s various economic sectors.
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Renewable Energy
Work is underway to determine the regulatory basis for the renewable energy sector and energy ef-ficiency, through the identification of Feed In Tariff (FIT) and the basics and rules of construction of power plants by solar cells, wind and others.
It was recommended to the Council of Ministers to adopt the national plan for energy efficiency and conservation, which aims to achieve the conservation goal which was adopted in the National Strate-gic Plan for the energy sector, which aims to achieve savings in power at least 5% of the total demand for electricity in different sectors by the year 2020.
The Board also submitted the Palestinian Strategy for Renewable Energy, which includes the general rules of stimulating tariff that aims to get 240 GWh to generate electricity from renewable energy sources, equivalent to 10% of electric power produced locally by the year 2020.
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ConclusionThe first annual report of the Palestinian Electricity Regulatory Council was issued, in which we re-viewed the most important achievements of the Council and a detailed explanation of the reality of the Palestinian Electricity Sector.
In the next issue we will explain the council’s achievements by the Council’s work plan. Most important of all the review of tariffs, licensing of companies, issuance of grid and distribution network standards, documentation of technical and financial information of companies operating in the field of electric power and issuing the rest of the legislation regarding renewable energy and energy efficiency.
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