Economic Policy Reform and Competitiveness Project

EPRC supports Mongolia’s effort to develop and implement a transparent, market-oriented regulatory environment to promote the competitive and efficient delivery of energy services to consumers; commercial practices in energy generation and distribution; and an attractive environment for foreign and domestic private investment.

Recent Activities
MMRE Energy Group and New Energy Authority: The reorganized MMRE energy group assumed their duties on 1 March 2009. The group is currently updating the sector policy and strategy developed by the previous Ministry. The project held a meeting with the head of the Ministry’s Energy Policy Group on 24 March and agreed on developing an Action Plan for joint collaboration.

Energy sector strategy and planning: The Energy Working Group (EWG) met on 22 January and 31 March. These were the eleventh and twelfth meetings since the group’s inception in April 2007. The March meeting included officials of the newly organized MMRE energy group. Issues discussed included the recently completed MMRE reorganization; the recently issued MMRE Action Plan for 2008-2012; short term MMRE priority actions; the need for an amendment of the Energy Law; the Ministry’s planned actions on other energy-related laws; the status of the CHP #5 technical evaluation; and the status of the Privatization Guidelines that will be presented to Parliament.

Energy consensus building: The ERA conducted several consensus building information and education sessions with the public, GoM officials and on radio and TV concerning the proposal issued early this quarter regarding its recommendation for the next tariff increases. EPRC re-broadcasted the TV program concerning the UB heat sector several times and will air a second follow-on heat sector program soon. Other project consensus building efforts continued this quarter regarding such issues as the new competitive power market design and the revisions of the market rules with all stakeholders.

New electricity market development program: The project completed and distributed a second revised draft of the market rules in mid February, following a workshop-style meeting with the New Market Working Group. A second workshop-style meeting was held with the Working Group on 26 March to review and discuss the second draft of the rules. The project is now working on a third revision as well as revising the Grid Code in accordance with the new market design and rules as well as continued the development of Vesting Contracts. The goal is to have the new market ready for implementation in 2010.

Update of ERA assessment: Project will deliver the update on the November 2006 assessment of the ERA by the end of April. The assessment shows the ERA made significant gains in the past two years and makes recommendations for further improvement.