Report on Fulfillment of the Program of Compliance

Introduction

Purpose of this Report
The distribution system operator is obliged to develop a program of compliance setting measures for securing a non-discriminatory behaviour of integrated utilities. This program determined specific obligations to the staff focusing on exclusion of potential discriminatory behaviour of integrated utilities.

The DSO is obliged to prepare a Report on fulfillment of measures adopted in the program of compliance every year. This report forms an integral part of the Annual Report of the DSO of an integrated utility, and the Report is sent to the Regulatory Office for Network Industries and it is published together with the Annual Report.

Legal Framework for the Report
The legal framework for the program of compliance and the functional unbundling is given by the Directive of the European Parliament and the Commission 2003/54/EC on common rules for the single market with electricity. The Directive has been transposed to the Slovak legislation by adopting the Act No. 656/2004 Coll. on energy. The program of compliance consists of a set of documents containing measures aimed at securing non-discriminatory behaviour of integrated utilities.

Implementation of the Program of Compliance at ZSE, a. s.

With the aim to secure obligations resulting from articles 24 and 25 of Act No. 656/2004 Coll. on energy for ZSE, a.s., relating to non-discriminatory behaviour towards market participants and development of program of compliance, in year 2005 several measures were adopted. Papers have been developed based on which the following internal management acts were issued:
  • Order of the Board of Directors No. 4.2.0.10 Program of compliance in order to secure
    non-discriminating behaviour (Program of compliance)
  • Order of the Board of Directors No. 4.2.0.7 Implementation of the program of compliance and functional unbundling at ZSE, a.s.
  • Order of the Board of Directors No. 4.2.0.11 Performing oversight over fulfillment of the program of compliance
  • Order of the Board of Directors No.4.2.0.9 Securing non-discriminatory behaviour of the DSO at ZSE, a.s.
  • Guideline No. 6.102.1 Protection of commercial secret at ZSE, a.s.

These internal management acts as quoted above are binding legal standards for performance of all activities of the staff, divisions and departments securing fulfillment of tasks of ZSE, a.s.

Program of compliance for securing non-discriminating behaviour, the purpose of which is to secure equal position for all entities participating on the power market, contains a set of measures focusing on the following areas:

  1. access to the distribution system and utilization of services provided by the DSO
  2. aransparent and non-discriminatory method of provision of information to all eligible persons
  3. independence of managers

The Order deals with the responsibility of the Compliance Officer for implementation of the program, compliance with the measures adopted, development of the Report pursuant to § 24 par.5, of the Energy Act, and the binding nature for all employees and the members of the Board of Directors.

Internal management acts set out the principles and general uniform conditions for securing of and compliance with the legal requirements related to the unbundling of the DSO and securing non-discriminating behaviour of the DSO towards all power market participants. Fulfillment of these acts should secure meeting the legal requirements in this area and to minimize risks resulting from the potential claims resulting from complaints from power market participants relating to discriminatory behaviour of the DSO with a subsequent imposing of sanctions by the state authorities, or risks resulting from legal disputes with the power market participants.

Západoslovenská energetika, a.s., has created a position of a Compliance Officer as a tool for securing fulfillment of requirements for non-discriminating behaviour, and that is primarily for meeting the program of compliance, for the needs of the Board of Directors and all levels of management. The Compliance Officer uses structured and systemic approach to control, identification and evaluation of implementation of requirements for securing non-discriminating behaviour at ZSE.

At the same time a new organization chart of ZSE was developed, which is compatible with the requirements of DSO unbundling. This organization chart came into force on January 1, 2006.

Last at least, training and information relating to this program was provided to the members of the statutory body and to all management staff. When there was a modification made to the program trainings were secured to cover such modification. The training is also part of the hiring procedures for new employees. Acquaintance with the program of compliance will follow also after electing new members of the Board of Directors.

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