The Regulatory Office for Network Industries performs a number of regulations, but the most visible ones cover:
- price (tariff) regulation,
- non-tariff regulation.
Price regulation is the dominant activity of the Office. Its objectives, priorities, scope and methods of execution are transformed by the Office into its implementing regulations which take the form of decrees and individual administrative acts - decisions. Thus the Office creates a regulatory framework and appropriate conditions for the creation of a transparent and non-discriminatory market environment in which regulated entities are given sufficient space to cover their costs and generate a reasonable profit. At the same time, the Office adopts measures that guarantee consumers secure and reliable supply at fair prices.
The basic principle applied in regulation of prices approved or set by the Office for the regulatory period of 2012-2016 is the price cap method.
A price regulation proceeding begins by delivering a price proposal for electricity, gas, heat, drinking water and wastewater and related regulated activities to the Office by a regulated entity, or a proceeding is started by the Office out of its own initiative. In the price proceeding, the Office approves or sets the price for a regulated entity by issuing a price decision. The regulated entity is allowed to appeal against the Office decision. The time limit for appeals against the decisions issued in a price proceeding is 40 days from the date of their notification.
Decisions are the final stage also for the other Office activities covering the less-known non-tariff regulation in line with §13 of Act on Regulation in Network Industries. In addition to a number of other decision-making activities, non-tariff regulation covers mainly:
- licenses to carry out regulated activities,
- issuing of prior approvals (e.g. with compliance officer appointments, contracts between vertically integrated undertakings, etc.),
- approvals of Operational Codes,
- issuing confirmations of electricity origin, etc.