2-Circumstances completely mindfulness submitted this offense, in all its

 2-Circumstances prompting the forcing of the Fine – Company’s Position  Through Decision no. 103, dated 20.07.2012, ERE started the regulatory procedures for forcing and authoritative fine to CEZ Shpërndarje.  Finding that the level of the import from CEZ Shperndarje for the period 1 – 14 September 2012, came to zero, through Decision no. 128, dated 11.09.2012, ERE’s Board of Commissioners chose to force a managerial punishment by fining CEZ Shpërndarje, for not obtaining the fundamental electrical vitality relating to the misfortunes in the circulation framework for 2012. Amid this procedure ERE found that CEZ Shpërndarje has in completely mindfulness submitted this offense, in all its administration levels, subsequently prompting grave conditions.  It was discovered that the caused outcomes are grave and they have influenced the security of the supply and have made budgetary challenges to KESH, due to non-installments and non-remuneration of the amount by CEZ Shperndarje, which have made troubles to KESH for paying the money related commitments towards the Small Energy Producers.  Additionally, it can be accentuated that the organization has recognized this inability to satisfy its commitment, despite the fact that it has legitimized it by dismissal of the administrative system or by difficulty to sign the agreements with the providers in the market. Likewise, CEZ Shpërndarje can’t play out the electrical vitality supply as per the agreement marked in the structure of the acquirement performed for 2011, for covering the misfortunes in the appropriation framework for 2012. In view of the examination of everything expressed above and based on Article 64 of Law No. 9072, dated 22.05.2003 “On the Power Sector”, as revised, additionally considering that the organization CEZ Shpërndarje came about to have gotten past managerial punishments, ERE, with choice no. 90, dated 15.11.2010, continued with setting a fine against the organization CEZ Shpërndarje in the measure of 1% of the pay of the previous year.  3 – The conditions of starting the method for the disavowal of the licenses of the organization CEZ Shpërndarje sh.a.  Indeed, even after it was given the fine, the organization CEZ Shpërndarje kept on breaking the commitments under the appropriate lawful structure by not acquiring the electrical vitality for the scope of misfortunes. In letter Prot.No. 6092/2, dated 28.09.2012, CEZ Shpërndarje says that it requests that KESH take the important measures in order to go about if all else fails provider, which suggests its supply with electrical vitality for the full scope of misfortunes.  Through letter Prot.No. 4693, dated 09.10.2012, TSO educated that “CEZ Shpërndarje has brought down its import to zero and in such conditions all the interest for electrical vitality is as a rule as of now satisfied by the stores of the Drini course”.  CEZ Shpërndarje’s inability to get the electrical vitality important to cover the misfortunes, aside from being a break of the previously mentioned legitimate and administrative commitments, straightforwardly influences the dependability of duty buyers’ supply with vitality, since the inability to import the misfortunes achieves the absence of vitality supply to Albanian shoppers and giving the vitality through the discount open provider (KESH) additionally bothers the monetary circumstance of the last mentioned and the other market members.  4 – Initiation of methods for the disavowal of the permit  1-Law No. 9072, dated 22.05.2003 “On Power Sector”, as corrected, Article 18, point1, letter “a”:  “ERE may deny the permit when the licensee:  a) Does not meet the terms and states of the permit allowed compliant with this law”;  2-Article 4.8, of the Market Model affirmed with Decision No. 338, dated 19.03.2008 “DSO is in charge of the buy of electrical vitality to cover the misfortunes in the dispersion framework. DSO may buy this vitality from any market member at advertise costs”;  3-The Regulatory Statement, endorsed with ERE’s Board of Commissioners’ Decision No. 94, dated 18.04.2008;  4-Regulation “On the Procedures for the Revocation of Licenses, affirmed with ERE’s Board of Commissioners’ Decision No. 68, dated 04.11.2005, separately Articles 5, 6, 7 and 8;  5-The License for the action of vitality dissemination endorsed with ERE’s Board of Commissioners’ Decision No. 8, dated 25.01.2008;  6-The License for the action of retail open vitality supply, endorsed with ERE’s Board of Commissioners’ Decision No. 9, dated 25.01.2008;  7-Energy Supply Contract for Household Consumers, affirmed with ERE’s Board of Commissioners’ Decision No. 108, dated 21.10.2011;  8-Energy Supply Contract for Non-Household Consumers, affirmed with ERE’s Board of Commissioners’ Decision No. 109, dated 21. 10.2011;  9-Energy Supply Contract amongst KESH and CEZ Shpërndarje affirmed with Energy Supply Contract for Household Consumers, endorsed with ERE’s Board of Commissioners’ Decision No. 134, dated 17.03.2012;  10 – The Transmission Agreement amongst TSO and CEZ Shpërndarje, affirmed with Energy Supply Contract for Household Consumers, endorsed with ERE’s Board of Commissioners’ Decision No. 102, dated 19.07.2012.  ERE’s Board of Commissioners, with Decision No. 158, dated 16.11.2012, Decided on the start of strategies for the renouncement of licenses for the exercises of vitality dissemination and retail open supply for this organization.   III-THE LEGAL AND TECHNICAL ANALYSIS – The infringement of CEZ Shperndarje  This area of the material investigations in detail CEZ Shpërndarje’s infringement of the enactment in compel and of the terms and states of its licenses as saw by ERE.  I – Breach of the terms and states of the Distribution License  1. Inability to methodology the electrical vitality for the full scope of the considerable number of misfortunes in the dispersion framework  Lawful Basis:  The Licensee should watch the Legislation in Force while practicing its capacities under this permit. – Point 3.1 of the Distribution License.  The Licensee is in charge of the buy of all the important vitality to cover the misfortunes in the circulation framework. – Point 3.16.4 of the Distribution License.  CEZ Shperndarje, infringing upon the above refered to commitments, has not played out the acquirement of the full amount of electrical vitality expected to completely cover the misfortunes in the conveyance framework.  Beginning from September 2012, all the more definitely in the period 1-14 September, CEZ Shpërndarje has not imported a solitary MWh of electrical vitality for the scope of misfortunes in the appropriation framework. Through letter prot. no. 4693, dated 09.10.2012, TSO illuminates that CEZ Shpërndarje has brought down its import to zero and under such conditions, all the interest for electrical vitality is by and large completely secured by the hold of the Drini course.” furthermore, TSO, through letter prot. no. 4498, dated 27.09.2012, routed to CEZ Shpërndarje, METE and in consideration of ERE, brings up that “We see that today the import (from CEZ) for 26 September 2012 has been pronounced to be at the level of 20 MWh. We might want to call attention to that CEZ Shpërndarje has not taken any measures to watch law no. 9072, dated 22.05.2003 “On Power Sector”, the Market Model and the Code of the Transmission System… As KESH educates, the progression of such a circumstance will convey the vitality save down to zero.”  CEZ, through letter prot. no. 6092/2, dated 28.09.2012, sets out the organization’s inadequacy to ensure the vitality import for the scope of misfortunes in the conditions when the providers have intruded on their supply and approach installment ahead of time for encourage vitality conveyances and furthermore perceives every one of the commitments towards KESH, the ones identified with the vitality utilized for the scope of misfortunes and in addition the budgetary commitments.  Dissemination License:  Point 2.7 The Licensee will direct its Licensed Activity as per the standards of financial productivity and the objective accomplishing the most minimal cost with the characterized models of value and execution.  Point 3.1 The Licensee might watch the Legislation in Force while practicing its capacities as per this License.  Point 3.4 The Licensee might attempt all the fundamental measures to enhance the operational and financial effectiveness of the Licensed Activity keeping in mind the end goal to guarantee the quality and supportability of circulation administrations to the advantage of the clients and as per the Distribution Code.  Point 3.16.5 The Licensee ought to set up a program went for accomplishing misfortune decrease focuses as set out in the approach for the count of appropriation taxes or by some other choice of ERE.  Point 3.17.2 The Plan ought to be centered around the improvement, reproduction and recovery of the Licensee’s network to improve its administration to clients. It ought to incorporate yet not be constrained to as takes after:  In light of the delicate records (Technical Bid to the Project for the Privatization of DSO, dated 26 September 2008 by CEZ, Business Plan), the commitments that CEZ Shpërndarje, as the Strategic Investor, ought to have satisfied are as per the following:  o Applying the know-how accumulated from its experience to the change of appropriation and supply (from Introduction and Executive Summary  o Reduction of misfortunes (from Introduction and Executive Summary  o Improvement of the charging framework and gathering (from Introduction and Executive Summary  o Human Resources Management Plans (from Introduction and Executive Summary  o Organizational structure ought to be adjusted to the model of the accepted procedures of CEZ Group (from plans for the change of the framework  o Reduction of specialized and non-specialized misfortunes, including speculations on circulation and framework gadgets for checking and anticipation (from Plan for the decrease of specialized and non-specialized misfortunes  At the end of the day, CEZ knew that its responsibilities and commitments as a key financial specialist would be performed by means of the Distribution System Operator, as the principle investor of the circulation framework.  “ERE expects a speedier lessening of non-specialized misfortunes and a slower however steadier change of the specialized misfortunes in the dispersion lattice. ERE anticipates the lessening of aggregate misfortunes in the dissemination framework as indicated by the accompanying situation:  ” 4% (rate point) diminishment for the main administrative period;  ” 4% (rate point) lessening for the second administrative period;  ” 9% (rate point) diminishment for the third administrative period (3*3%).”  Concerning claim we clear up that:  In light of the checking completed by ERE amid which were seen components as, utilization of DSO itself, different overbillings, impacts caused by the electrical vitality supply confinements for the buyers, which affected the level of misfortunes in the dispersion and were not considered into the level of misfortunes recognized by the Regulatory Statement, the Board of Commissioners with Decision no. 46, dated 14.06.2010 decided the acknowledged level of misfortunes for DSO for 2008, according to impact of setting the goals on misfortunes for the three administrative periods (2010-2014), in light of the Regulatory Statement and the count of the appropriation levy at the measure of 33.92 %. The monetary impacts of this choice were later balanced through the pay guideline, as per the Regulatory Statement.  Taking everything into account, CEZ Shpërndarje has not satisfied its commitment to decrease the misfortunes in the appropriation framework, in this way significantly expanding the distinction (more than the one perceived by ERE for 2008) between the objectives set for the level of misfortunes and for the genuine misfortunes in the lattice.  3. Inability to complete the Investment Plan endorsed by ERE  Lawful Basis:  – Shares Purchase Agreement (SPA)- the Bid Document for 2008 CEZ a.s – Distribution License:  Point 3.17 – The operations design  3.17.2 The arrangement should concentrate on the advancement, recreation and recovery of the Licensee’s Grid, keeping in mind the end goal to enhance the administration for the customers. It ought to incorporate without impediment the accompanying:  a) A Construction program;  b) A speculation program with specialized, monetary and money related investigations of the venture ventures;  c) A program expecting to lessen the electrical vitality misfortunes in the Grid;  d) A support program alongside the venture program to secure a more manageable operation of the Grid;  e) Indexes of the administration quality and a program to accomplish the targets; Point 4.6-The Licensee ought to keep the choices issued by ERE  With respect to diminishment of misfortunes decided in the Bid Document for 2008, CEZ a.s was “completely dedicated to decrease the misfortunes” in the accompanying ways:  o The current l10 kV lines and 110/10 kV substations would be remade and fortified;  o A substantial number of one-stage individual boxes for the family unit purchasers and three-stage boxes for the private buyers, and an amount of boards with metering transformers for the private buyers would be purchased;  o Development of the dispersion framework and of the substations in the fundamental urban areas of Albania and in the most occupied country territories;  o Replacement of the transformers delivered by old innovation (with steel and copper developments, achieving high misfortunes) with new transformers, whose misfortunes are under 2%;  o Metering the responsive vitality for the buyers with a limit of more than 50 kV, since the interest for this present customers’ class and the arrangement for the buy of the metering boards with dynamic/receptive electronic meters have been distinguished;  o Continuing to complete started works for furnishing the electrical lodges with dynamic and receptive vitality and the new lodges with meters;  o Additional interests in the network and innovation of lines with a specific end goal to expand the conductors areas, to decrease the specialized misfortunes and to limit the unlawful associations with the lattice;  o Correction of principles in the Metering Code with a specific end goal to prepare (I) precision of readings, meters perusing and information recording; (ii) the metering administration ought to be fixed; and (iii) assurance of the metering framework from the mediations and harms, keeping in mind the end goal to ensure the metering framework and limit the vitality robbery;  o Improving the nature of the Distribution System (counting the recurrence and span of disengagements/blackouts).  As a declaration of its sense of duty regarding contribute and enhance these parts of the dissemination framework administrator, in the Business Plan CEZ a.s. states that: “the principle goal of CEZ, when it would wind up noticeably proprietor of the lion’s share of DSO shares, was to give its customers an adequate level of administrations and have the capacity to: (1) successfully and undauntedly deal with the issues identified with the terrible obligation, make a unique office to manage the awful borrowers, and in addition to enhance the viability of gathering the cash in short due dates, and (2) meet the expanding needs of these buyers’ classes, in regards to the planning of suitable levies, installment terms and conditions, installment strategy, straightforwardness on the long haul invoicing.”  Inability to pay TSO in consistence with the understanding endorsed by ERE.  Legitimate Basis  Point 4.6 of the Distribution License “the Licensee might consent to the choice issued by ERE, including the installments of the punishments forced by ERE as per the Legislation in Force”.  ERE’s Board of Commissioners’ Decision No. 102, dated 17.07.2012 “On the endorsement of the vitality transmission understanding amongst TSO and CEZ Shperndarje”.  CEZ Shpërndarje has not made customary installments to TSO. This conflicts with ERE’s Board of Commissioners’ Decision No. 102, dated 17.07.2012 which affirmed the transmission assention amongst TSO and CEZ Shpërndarje and point 6.4 of the Market Model.  6-Failure to follow the commitment of submitting reports to ERE  In light of point 3.7.2 of the Distribution License and 3.2.2 of the License for Retail Public Supply – the Licensee is requested to get ready and submit to ERE by 31 January of consistently, a yearly investigate its operations amid the past timetable year.  ERE’s Board of Commissioners’ Decision 158, dated 16 November 2012, calls attention to that CEZ Shpërndarje has broken point 3.7.2 of the Energy Distribution License and point 3.2.2 of the License for Retail Public Supply.  An investigation of the letters uncovers that CEZ Shpërndarje has given data on:  1-Energy Balance  2-Sales structure  3-Technical and non-specialized misfortunes  4-Evidence sheet of borrowers for the month to month and dynamic vitality  5-Data on client arrangement with electrical meters.  Such an investigation of the data submitted through these letters uncovers that this data does not meet the orders set out in point 3.7.2 of the Distribution License  Point 3.2.2 of the permit  The Licensee is required to get ready and submit to the ERE on January 31 of every year, a yearly provide details regarding its operations amid the past timetable year, containing the accompanying:  ” synopsis and investigation of the supply action of the Licensee;  ” vitality deals and information on the gathering of solicitations for the year;  ” any intrusion of the supply as indicated by the voltage levels;  ” terms of supply contracts with the Wholesale Public Supplier; and  ” a table demonstrating the Retail Public Supplier’s execution under the Distribution Code to the degree pertinent  ” finish of agreements for the supply of electrical vitality to levy customers.  All in all, as expressed above, CEZ Shpërndarje, in the answer sent for the impact of the procedures to deny the permit, concedes that it has not revealed as required under the permit conditions and, also, it gives no clarifications with regards to the reasons of such resistance.  II. Infringement of the terms of the License for the Retail Public Supply  1 – Failure to make installments to KESH as per the understanding affirmed by ERE  Legitimate premise:  Point 4.6 of the License for Retail Public Supply – Failure to consent to ERE’s’ Decisions  ERE’s Board of Commissioners’ Decision No. 134 dated 17.09.2012  ERE has discovered infringement of commitments in the legally binding connection amongst KESH and CEZ Shpërndarje in opposition to ERE’s Decision No. 134, dated 17.09.2012, on the assention for the offer of electrical vitality amongst KESH and CEZ Shpërndarje. CEZ Shpërndarje, in break of point 6.5 of the Market Model, has not made normal installment of electrical vitality as per the terms of this agreement.  In view of the Electricity Market Model, affirmed with the Council of Ministers’ Decision no. 338, dated 19.03.2008, point 4.12 and point 4.13, letter “A”, point 2, which gives the controller’s part in the assurance of the separate rights and commitments of market members, the connection between the Wholesale Public Supplier and the Retail Public Supplier works as a directed relationship, and in that capacity, the understanding for the offer of electrical vitality between them is required to be endorsed by ERE. This is additionally given in the Electricity Market Rules affirmed with ERE’s Decision prot. no. 68, dated 23.06.2008, to be specific the arrangements of point V.1.  2-Violation of the General Terms and Conditions of the Electrical Energy Supply Contract for the Household and Non-family unit Clients  The electrical vitality supply contract for the family unit and non-family shoppers has characterized the reports on the common commitments and liabilities between the customer and CEZ Shpërndarje, in the limit of the retail open provider.  ERE has discovered that CEZ Shperndarje, in most of the cases, is in opposition to the due date for treating the protests or demands from the customers, as per the commitment of point 6.10, of the Retail Public Supply License and of the Electrical Energy Supply Contract for the Household and Non-family Clients, a commitment in light of which the Licensee should think about any grumblings and  should answer in keeping in touch with the customer if his/her objection has been acknowledged or cannot, inside 15 working days frame the receipt of the dissension. For this offense, ERE clarifies reference what does the disappointment of CEZ Shperndarje to satisfy the commitment set up.  CEZ Shpërndarje’s illicit use of purchaser invoicing under the thing “monetary harm” or “unbilled vitality”. An extensive number of objections enlisted in ERE (around 70%) is made as to CEZ Shpërndarje’s unlawful use of invoicing buyers under the thing “monetary harm” or “unbilled vitality”, which has been connected to guilty parties of electrical vitality.  In connection to this reality, two sorts of offenses have been distinguished:  1-Noncompliance with ERE’s Board of Commissioners’ Decision No. 90, dated 15.11.2010, “On resistance with the terms and conditions set out in the License and specifically point 3.1 of the License for the Activity of Retail Public Energy Supply” on the cancelation of the “monetary harm” or “unbilled vitality”, connected after Law No. 9997, dated 22.09.2008 came into constrain.  2-Applying “monetary harm to family unit and non family buyers, in spite of Article 14 of the Electrical Energy Supply Contract for Household and Non family unit Customers and point III.7.7 of the Energy Metering Code.  With respect to the protestations about “monetary harm” and “unbilled vitality”, ERE has seen, in light of the minutes issued by NTL gatherings, that the lion’s share of these assessments have not been made within the sight of the supporter, which conflicts with Article 14.1 of the Electrical Energy Supply Contract for Household and Non family Consumers and also Article III.7.7 of the Metering Code. Moreover, the reviews have been made in aggregate boxes, boxes which are not under the responsibility for, but rather under the organization of CEZ Shpërndarje.  ” Immediate interference of vitality supply.”  ” Overbilling and off base charging of electrical vitality.”  ” Noncompliance with the 30-day due date for the periodical perusing fo the meter.”  ” Obviously wrong charging.”  ” Prevention of free access to meter perusing by buyers”  In view of the General Conditions of Electrical Energy Supply Contract for Household and non family Customers, Article 7.3 stipulates that “Inside 31 December 2012, the Supplier is obliged to guarantee the client’s agree to give free access to meter perusing whenever”. As to was expressed above, ERE has seen that CEZ Shpërndarje has not taken the best possible measures for the execution of this Article of the Contract.  ” Calibration of electrical meters.”  ” Energy supply quality.”  ” Invoicing of electrical vitality for “metering out of specialized conditions”.  ” Fictive contract marked singularly by the organization.”  ” Problems from the season of aforfe invoicing – 2007 – 2009 period.”  ” Not regarding the decided due dates for the new contracts.”  ” Not crediting the installments made for the electrical vitality solicitations.”