ENERGY REGULATORY COMMISSION

Annual report
2011

Ulaanbaatar
2012

CONTENT
I.

BRIEF INTRODUCTION ABOUT COMMISSION

II. COMMISSION ACTIVITY

ENERGY REGULATORY
COMMISSION

III. LICENSING
IV. ELECTRICITY MARKET IN THE CENTRAL REGION
V. TARIFF REGULATION
VI. CONSUMER PROTECTION ACTIVITY

Annual report 2011

LETTER FROM THE CHAIRMAN

ENERGY REGULATORY
COMMISSION

The Energy Regulatory Commission has been working

stable for 11 years since the beginning of Mongolian energy
sector reform in 2001.
The Energy Regulatory Commission (ERC) has been
working efficiently in transferring energy sector to market
economy; improving financial and economical capability of
the energy companies and encouraging private investment
to the sector. We should address to ERC specialists that
they has contributed their great efforts to the biggest
successes that arised in the sector.
Through this 10th annual report we are introducing you ERC works performed
in 2011 and hope that the annual report contains information you need.
Taking many important measures included in the work plan to be implemented
under the Parliament Resolution #72, 2011 we have succeeded significant achievements.
Increasing consumer electricity and heat tariffs from 1 May, 2011 total sales
revenues of electricity and heat have reached at 351.8 billion tugrik which is more
than 16.1 percent or 49 billion tugrik if comparing last year performance. Moreover,
increasing tariffs, energy companies financial capability has been improved well.
We resolved liquidation of debts of 1.5 billion tugrik which had been accumulated
since 2001 and would be settled by Ulaanbaatar Electricity Distribution Network
SOJSC to Thermal Power Plants #2; #3 and #4 and further these resources were
allocated for coal mining debts. At the end of 2011 the Single Buyer collection rate
reached at 101.8 percent and accumulated debts between 2001-2010 were reduced
to 29 percent or by 4.3 billion tugrik.
In 30 June 2011 the ERC celebrated its 10 years anniversary organizing a
Theoretical and practical conference named Energy Regulation in 10 years.
According to the newly amended law in 9 December 2012 Energy Regulatory
Authority was reorganized as the Energy Regulatory Commission and further its
function and activity are extended as well as Commission shall approve methodology
for setting fuel price used for energy generation; and review its calculation; review
investment plan of licensee on expanding or renew the electricity or heat transmission
lines; and distribution networks; and to decide that investment issue by tariff
regulation; submit to the Government its proposal on subsidies for licensees related
to their tariff losses for the purpose of relieving load that comes in on consumer.

Annual report 2011

As a result of Concession Law adopted in 2010 private investors participation in

the energy sector is increasing. Energy system demand of Mongolia fully reached to
current total capacity of power plants. For the purpose of covering those increasing
demand, the ERC issued licenses under its duties for construction of 2 Thermal

Power Plants, totally 1100 MW installed capacity and construction of 6 Wind parks
which total capacity is 604 MW. Those companies obtained the licenses are foreign
and domestic private investors.
Therefore, ERC plans to cooperate with international organizations and
implement projects for the purpose of improving capacity building of ERC on
improving regulatory framework; and satisfying requirements of foreign and
domestic investors and meets with international standards.

ENERGY REGULATORY
COMMISSION

We hope that you would kindly read this report and provide us with your
valuable consultation.
Surely, we will consider and reflect your kind consultations and recommendations
in our work in the future.

Best regards,

Tserenpurev Tudev
Chairman

Annual report 2011

I. BRIEF INTRODUCTION ABOUT COMMISSION

ENERGY REGULATORY
COMMISSION

On 09 December 2011 Parliament of Mongolia approved amendments to the

Energy law of Mongolia. According to the newly amended law Energy Regulatory
Authority has been reorganized as an Energy Regulatory Commission.
Energy Regulatory Authority shall regulate generation, transmission, distribution,
dispatching and supply of energy.
The main purpose of the Authority is to issue the operational licenses, to
review and approve the tariffs of the licensees, to protect equally the rights of the
consumers and licensees as well as to create condition for fair competition among
the generators and suppliers in accordance with the Law on Energy.
According to Energy Law ERC shall have the full powers: to set the terms and
conditions to obtain a license; to set operational and licensing terms and requirements
for licensees; to monitor compliance with these terms and requirements; to develop
methodology for determining tariffs; to review and approve tariffs of licensees;
to set selling tariffs to consumer; to implement tariff indexation; to establish a
pricing and tariff system that enables supply of energy at the lowest possible cost
and allows an adequate rate of return; to approve methodology for setting fuel
price used for energy generation; and review its calculation; to review investment
plan of licensee on expanding or renew the electricity or heat transmission lines;
and distribution networks; and to decide that investment issue by tariff regulation;
to approve tariff indexation procedure; to resolve disputes between licensees and
disputes between licensees and consumers in accordance with its jurisdiction; to
submit to the Government its proposal on subsidies for licensees related to their
tariff losses for the purpose of relieving load that comes in on consumer.
Also, under the Renewable Energy Law states the ERC has obligations to review
tariff applications of a generating licensee that uses a renewable energy power
source connected to the grid in accordance with this law; and approve a sample
agreement to be concluded by and between a transmitter and a generator that uses
a renewable energy power source and monitor the contract implementation.
The Commission is governed by the Commissioners: three of them are full time
members and two are part time members. The Commission has Managing Director;
Legal, Administration Department; Licensing Division and Price & Tariff Division.
Including Commissioners ERC operates with 38 people.
.

Annual report 2011

COMMISSION STRUCTURE

PART TIME ADVISORY

BOARD

COMMISSION

MANAGING DIRECTOR

LICENSING DIVISION

ENERGY REGULATORY
COMMISSION

LEGAL,
ADMINISTRATION
DEPARTMENT

PRICE & TARIFF

DIVISION

REGULATORY BOARDS OF
PROVINCE AND CAPITAL CITY

DUTIES OF DEPARTMENTS AND DIVISIONS

Executive Director
To organize Commission Meeting;
To provide Commissioners with relevant information;
To coordinate activities of the Secretariat;
Public relations issues;
Legal, Administration Department
Legal issues and contracts;

To provide Energy Regulatory Boards of Province and Capital city with management; to
organize their appointment and release;
Disputes between consumer and licensee and between licensees;
Commission Human resource issues;
Foreign relations and cooperation issues;
Information system;
Internal issues;

Licensing Division

Price & Tariff Division

Licensing issues;

Tariff methodology and rules;

Monitoring issues on the Licensee technical

activity;

Tariff review and proposal;

Monitoring of Electricity market;

Rules and regulations related to technical and
technological issues;
Assistance to the Energy Regulatory Boards of
Province and Capital city;

Financial and economic monitoring

of the Licensee;
Cost audit;
Assistance to the Energy Regulatory
Boards of Province and Capital city.

Annual report 2011

COMMISSION MANAGEMENT

ENERGY REGULATORY
COMMISSION

T.Tserenpurev

N.Myagmarsuren

D.Bassaikhan

Chairman

Commissioner

Commissioner

D.Chuluunbaatar

D.Jargalsaikhan

Commissioner

Commissioner

Annual report 2011

M.Munkhtulga

R.Gan-Erdene

M.Ganchimeg

Managing Director & Head of

Licensing Division

Head of Legal, Administration

Department

Head of Price & Tariff Division

TELEPHONE AND EMAIL ADDRESS OF STAFF

Web: www.erc.mn
No

Position

Name

Phone

e-mail

ENERGY REGULATORY
COMMISSION

COMMISSION
1

Chairman

. Tserenpurev

319312

tserenpurev@erc.mn

Commissioner

N. yagmarsuren

319357

myagmarsuren@erc.mn

Commissioner

D.Bassaikhan

319347

bassaikhan@erc.mn

Commissioner
/part time/

D.Chuluunbaatar

320126

chuluunbaatar@erc.mn

Commissioner
/part time/

D.Jargalsaikhan

320126

jargal@erc.mn

SECRETARIAT

Managing
Director & Head
of Licensing
Division

. unkhtulga

319317

munkhtulga@erc.mn

Secretary of the
Commission

E.Samdan

313203

samdan@erc.mn

LEGAL, ADMINISTRATION DEPARTMENT

8

Head of
Department

R.Gan-Erdene

313203

gan-erdene@erc.mn

Accountant

D.Munkhbold

319398

munkhbold@erc.mn

10

Human Resource
specialist

D.Narantsetseg

11

Lawyer

O.Davaajargal

12

IT engineer

Sh.Tsend-Ayush

13

Assistant to
Chairman

E.Erdenetuya

319312

erdenetuya@erc.mn

14

Archive specialist

O.Altanzagas

319398

altanzagas@erc.mn

15

Typist

. Tsetsgee

320126

tsetsgee_o@erc.mn

narantsetseg@erc.mn
313203
tsend-ayush@erc.mn

LICENSING DIVISION
16

Specialist

B.Erdenetsetseg

erdenetsetseg@erc.mn

17

Specialist

S.Munkhjargal

munkhjargal@erc.mn

18

Specialist

N.Jigjidsuren

19

Specialist

B.Battuya

20

Specialist

A.Bat-Erdene

bat-erdene@erc.mn

21

Specialist

D.Altantuya

altantuya@erc.mn

319374

jigjidsuren@erc.mn
battuya@erc.mn

Annual report 2011

PRICE & TARIFF DIVISION

ENERGY REGULATORY
COMMISSION

Annual report 2011

10

22

Head of Division

. Ganchimeg

319219

ganchimeg@erc.mn

23

Specialist

B.Bolor-Erdene

24

Specilaist

Yo.Gankhuyag

25

Specialist

D.Tserennadmid

26

Specialist

S.Tsetsgee

tsetsgee_s@erc.mn

27

Auditor

B.Ulambadrakh

ulambadrakh@erc.mn

28

Auditor

L.Enkhzaya

29

Auditor

N.Bolormaa

bolor-erdene@erc.mn
319396

319398

gankhuyag@erc.mn
tserennadmid@erc.mn

enkhzaya@erc.mn
bolormaa@erc.mn

II. COMMISSION ACTIVITY

COMMISSION MEETINGS
In 2011, the Commission conducted 43 meetings, discussed 77 issues, and released
131 resolutions. By the Commission, 37 issues discussed and 37 resolutions passed
which were related to granting new licenses and extending and amending previously
granted licenses. The Commission granted newly an energy construction licenses to
United Power LLC, Sainshand wind park LLC and Aydiner Global LLC which
are working for renewable energy. Also, Commission granted construction license
to East Energy Development LLC constructing for thermal power plant; license
for electricity distribution and regulated supply to Power Unit LLC and licenses
for import of electricity to Eastern Regional Energy System SOJSC. In addition,
Commission set power plants own use rate and transmission and distribution losses
rate which to be complied in 2012.

ENERGY REGULATORY
COMMISSION

Picture 1. Commission Meeting

The Commission issued 77 resolutions concerning tariff regulation and made

decisions on increasing consumer tariffs in central, eastern and western regions.
In connection with the increase of consumers electricity and heat tariff ERC made
changes on tariff of energy companies. Also, Commission approved electricity
generation tariffs of wind parks such as Qleantech LLC and Sainshand Wind Park
LLC. Moreover ERC changed hot water heating tariffs; and approved Methodology
on calculation of capacity and energy tariffs of Licensees. The Commission made
quarterly assessments on operational performance of Licensees and Housing service
companies.

Annual report 2011

11

The Commission also discussed issues related to internal activity of organization,

approved Business rules between the Supplier and Consumer and samples of Power
Purchase Agreements.
ENERGY REGULATORY
COMMISSION

Licensees received incentive bonus according to results of Performance

Agreements
In 2010 the ERC signed the agreements with Erdenet and Bulgan Electricity
Distribution Network and Baganuur & South Eastern Electricity Distribution Network,
Thermal Power Plant #3 and Erdenet Thermal Power Plant. First three companies had
been improved their main indices of operation and according to the terms of the
agreement they earned 244.7 million tugrik.

Picture 2. The Commissioners evaluated execution of Performance Agreement

with Erdenet Thermal Power Plant.
In 2011 ERC and 6 other energy companies have concluded Performance
Agreements which performance will be evaluated in 2012.
The ERC provided technical and methodological guidance to the Regulatory
Boards of aimags (provinces) and the capital city

Annual report 2011

12

In April 2011, the ERC organized annual meeting of the Regulatory Boards of
aimags and the capital city in Ulaanbaatar. About 80 delegates from 21 aimags,
Ministry of Mineral Resources and Energy, Energy Authority and Energy Regulatory
Authority participated in the meetings. During the annual meeting, participants
discussed about difficulties facing on energy supply in the rural area. According to
the discussion and issues arisen by the members of Regulatory Boards of aimags
and the capital city, ERC made plan and took related measures to resolve the above
mentioned difficulties.

Moreover, among the members of Regulatory Boards of aimags and the capital
city the ERC had conducted training on energy regulation, tariff and energy supply
issues which was very fruitful for the members.
In 2011, ERC organized site visits in Dornogobi, Uvs, Selenge, Khovd and
Darkhan-Uul aimags and gave recommendations to the members regarding their
tasks.

ENERGY REGULATORY
COMMISSION

Picture 3. Members of Regulatory Boards of aimags and the capital city

In 2011 the Regulatory Boards of aimags and the capital city issued 32 new
licenses to 15 enterprises, extended 66 licenses of 31 enterprises, revoked 4 licenses
of 2 enterprises and approved tariffs for 60 enterprises. As of 2011, 172 enterprises
with 433 energy licenses are running their business in the territories of provinces
and the capital city.
ERC encourages development of Green energy
ERC has been making its contribution on the development of renewable energy.
In 2011 ERC had issued several licenses for construction of renewable energy
plants to following companies: Sainshand Wind Park LLC for constructing 52 MW
wind park; Qlean Energy LLC 250 MW wind park; AB Solar Wind LLC 100
MW wind park and Aydiner Global LLC-50.4 MW wind park and Civil Aviation
Authority 443 kW solar plant. Further, ERC approved their electricity generation
tariffs. Moreover, ERC had developed and approved Samples of Power Purchase
Agreements between renewable energy generators and transmitter.
The ERC has been supporting private investment in the energy sector since its
establishment. Therefore, above mentioned green energy projects were encouraged
by the ERC from its beginning.

Annual report 2011

13

III. LICENSING

ENERGY REGULATORY
COMMISSION

In 2010 ERC granted energy licenses to 15 enterprises and organizations

and extended the licenses of 7 enterprises and organizations.
In 2011, the ERC received requests from 22 enterprises and organizations for
8 types of 27 licenses to be granted or extended. All requests were reviewed with
their accompanying documents in detail. Based on this stage of examination, the
Commission decided to grant new licenses to the following entities: Construction license
for 600 MW thermal power plant to East Energy development LLC; construction
license for 18 MW thermal power plant to United Power LLC construction license
for 52 MW wind park to Sainshand Wind Park LLC; construction license for 100
MW to AB Solar Wind LLC; construction license for wind park to Aydiner Global
LLC; construction licenses for 44 MW diesel station and 72 MW heating station to
Oyu Tolgoi LLC and construction license for 443 kW solar station to Civil Aviation
Authority.
As of today, the ERC is regulating energy activities of 83 licensees who have
173 licenses of 10 types.

Monitoring, benchmarking and rating of the Licensees activities
The ERC, with the purpose of monitoring and evaluating the licensees activities,
conducts various activities, including evaluation of Licensees monthly and quarterly
performance indicators and review of their operational performance and annual
reports on compliance with the terms and conditions of their licenses.
In 2011, the ERC received and evaluated the main technical and economic
indices of the Licensees on a quarterly basis and evaluated their performance for
discussion at Commission meeting.
Moreover, the ERC continued the quarterly benchmarking and ranking of the
Energy Licensees, dividing them into three groups: (1) the largest 18 companies
created as a result of the unbundling; (2) 26 housing service companies; and (3)
18 local electricity distribution companies, based on their key performance indicators
such as profit or loss, accounts receivable and payable, power plants internal power
consumption rate, electricity transmission and distribution losses, additional system
make-up water, reliability and safety indicators, and revenues and expenses.

Annual report 2011

14

Table 1. 2011 Rating of the biggest energy licensees

Rating

Licensees

Darkhan Thermal Power Plant State Owned Joint Stock Company

II

Thermal Power Plant # 4 State Owned Joint Stock Company

III

Thermal Power Plant #2 State Owned Joint Stock Company

IV

Darkhan -Selenge Electricity Distribution Network Company

Ulaanbaatar District Heating Network State Owned Joint Stock Company

VI

Baganuur & South-Eastern Regional Electricity Distribution Network State Owned

Joint Stock Company

VII

Central Regional Electricity Transmission Grid State Owned Joint Stock Company

VIII

Darkhan District Heating Network State Owned Joint Stock Company

IX

Erdenet-Bulgan Electricity Distribution Network State Owned Joint Stock Company

Eastern Energy System State Owned Joint Stock Company

XI

Ulaanbaatar Electricity Distribution Network State Owned Joint Stock Company

XII

Erdenet Thermal Power Plant State Owned Joint Stock Company

XIII

Baganuur Heating Plant State Owned Company

XIV

Thermal Power Plant #3 State Owned Joint Stock Company

XV

Altai Uliastai Energy System State Owned Joint Stock Company

XVI

Western Energy System State Owned Joint Stock Company

XVII

Nalaikh Heating Plant State Owned Joint Stock Company

XVIII

Dalanzadgad Thermal Power Plant State Owned Joint Stock Company

ENERGY REGULATORY
COMMISSION

The ERC determines quality and continuity of electricity supply service by

using internationally applicable indices SAIDI, CAIDI and SAIFI.
In order to register and classify reasons of electricity supply interruptions and
to determine the numbers of interruptions in conformity with international standard,
the ERC started to register the electricity supply interruptions by using the following
3 indices from 2005:
1. The System Average Interruption Duration Index (SAIDI) the number of
interruptions per consumer per year

number of interruptions/ number of all customers/year)

2. The System Average Interruption Frequency Index (SAIFI) the average time of
interruptions per consumer per year

(duration of interruptions (min)/ number of all customers/year)

3. The Consumer Average Interruption Duration Index (CAIDI) - the average

interruption time per consumer affected by the interruption per year

(duration of interruptions (min)/ number of customers affected by the

interruptions/year)

Annual report 2011

15

Using these 3 indices, the ERC received electricity supply interruption information
quarterly from transmission and distribution companies; through integration of this
data the ERC prepared quarterly summaries in 2011.
ENERGY REGULATORY
COMMISSION

These indices were estimated for every distribution company in 2011 by reflecting
the scheduled outages, unscheduled outages, natural calamities, outages caused by
the fault of the licensee, and outages resulting from other licensees actions.
In 2011 the ISAIDI was 119 hours which was decreased by 52 percent from
previous year. ISAIFI was 12 per customer depicting a decrease of 2 units compared
with 2010.

Table 2. Summary of interruption indices in 2010-2011

2010
Region

2011

SAIDI

CAIFI

CAIDI

SAIDI

CAIFI

CAIDI

Central Region

61

14

57

12

Western Region

213

24

220

33

Eastern Region

4012

12

332

654

205

Dalanzadgad

466

12

39

Total

381

27

14

954

29

33

Central Region

247

14

18

119

12

10

Charts 1,2 and 3 Interruption indices

SAIDI

SAIFI
292

300

20

247

240

16

180

12

120

98

81

120

89

119

17
13

18
16

12

14
12

8
4

60
0

0
2005

2006

2007

2008

2009

2010

2011

2005

2006

2007

2008

2009

2010

2011

CAIDI
19

20

18

16
12
8

10
7

Annual report 2011

0
2005

16

2006

2007

2008

2009

2010

2011

Summary of central regional

interruption shows that in 2011 SAIDI
became 57 hour which is 6.6 percent
reduction from previous year while
CAIFI was 12 which reduced by 2 from
2010.

Licensees improved their operational efficiency

In 2011, the ERC obtained and analyzed monthly information from power plants
and transmission and distribution companies on their own use of electricity and
electricity transmission and distribution losses. By informing respective licensees on
their performance, discussing quarterly performance at meetings of the Commission,
and organizing site inspections along with respective directions to licensees, power
plants of CES used 15.14% of gross generation for internal use in 2011 compared
with 15.62% in 2010. This 0.48% reduction is equivalent to 20.7 million kWh and
MNT 1.8 billion of sales revenues. Thermal Power Plants #2; #4; Darkhan Thermal
Power Plant; Erdenet Thermal Power Plant had contributed their efforts for this
achievement.

ENERGY REGULATORY
COMMISSION

As result of the related necessary measures that were taken by the management
of power plants since 2002, power plants own use has been reduced each year with
significant savings. To date, the overall decrease has reached about 30% which is
MNT 12 billion of saving.
Chart 4. Power plants own use rate in the Central Energy System
%

25

22

21

20

19.78

19.08

18.13

17.5

16.47

16.11

15.87

15.62

15.14

2008

2009

2010

2011

15

10

5
2001

2002

2003

2004

2005

2006

2007

Moreover, Dornod thermal Power Plant had reduced its own use by 1.14 units
from previous year. Totally, 7 thermal power plants had reduced their own uses by
0.49 units.
In 2011 electricity transmission and distribution losses in the Central Energy
System became 16.6% which shows 0.7 units decrease from 2010 (17.3%) or
equivalent to 35.3 million kWh of electricity or MNT 3.0 billion savings.
During the period of 2002-2011 by decreasing losses by 7.4 units, there MNT
14 billion has been saved.

Annual report 2011

17

Chart 5. Electricity transmission & distribution losses in CES

ENERGY REGULATORY
COMMISSION

25

24

23

21.9

20.3

20

19.8

18.4

17.4

16.8

17.7

17.3

2009

2010

16.6

15

10

5
2001

2002

2003

2004

2005

2006

2007

2008

2011

Besides, Western Energy System losses have been reduced substantially which
were reached at 49.6% in 2005. In 2011 the losses became totally 28%, comparing
in 2010 (30.1%) it shows 2.1 units decrease and then 2.1 million kWh electricity
saved.
Also, Dalanzadgad Thermal Power Plant reduced its losses by 0.6 units.

IV. ELECTRICITY MARKET ACTIVITIES IN CENTRAL ENERGY

SYSTEM
Single Buyer sales revenue collection reached 103, 8%
One of the main objectives of the ERC is to transform the energy sector of
Mongolia into a market oriented system. Currently, the Single Buyer model, which
is adopted in the frame of the
Central Energy System is regulated by an automatic cash flow mechanism. Spot
and auction markets are also implemented among the Central Energy System.
With the purpose of creating a market environment in energy production and
supply, the Single Buyer Model has been in place since September 2002.
Single Buyer purchases electricity from the 5 Power Plants operating in the
Central region and through import from Russia and sell it to the 10 electricity
distribution companies. Central Regional Electricity Transmission Network has been
operating as a Single Buyer since September 2002.
In 2011, the Single Buyer purchased 3844.4 million kWh of electricity, equivalent
to MNT 231.7 billion, from the generators and through import from Russia. The
amount of electricity purchased increased by 6.1% from 2010.
Annual report 2011

18

In 2001, before the inception of the Single Buyer Model, the rate of sales
revenue collection was only about 76.5%. This rate has increased every year and
reached 101.8% in 2011 and collected additional MNT 4.3 billion more than planned
(MNT 231.7 billion) in 2011 and accumulated debts of previous years were reduced
accordingly.

ENERGY REGULATORY
COMMISSION

8.4% 103.8%

9.3% 101.8%

2006

9.0% 98.7%

2005

10.5% 94.2%

12.9% 98.9%

2004

11.5% 100.3%

11.5% 98.3%

92.7%
17.6%

13.5% 97.5%

60.0%

2010

2011

40.0%

80.0%

76.5%

100.0%

21.1%

89.5%

Chart 6. Single Buyers electricity sales revenue collection rate and its structure

40.0%

20%

0.0%

2001

2002

2003

Through offset

2007

2008

2009

Through account

Activity of the electricity SPOT market

A spot market is based on the differences between the amount of scheduled
electricity generation and the amount of real-time electricity supply. As a result
of operating the spot market, power plants will try not to breach the scheduled
generation or dispatching graph. In case of breaching it, they will bear some
responsibility according to the spot market rule. In other words, trade is affected by
selecting the highest tariff of the companies participating in the spot market.
In 2010, about 3.9 million kWh of electricity or MNT 195.7 million was traded
in the spot market. The amount of traded electricity reduced by 20.6% from 2010,
which shows that generators imperfection had been reduced.
Thermal Power Plant #4 gained revenue of MNT 123.2 million from the spot
market trade in 2011. However, Thermal Power Plant #2, Thermal Power Plant #3,
Darkhan Thermal Power Plant, Erdenet Thermal Power Plant, had carried responsibility
of paying MNT 10 million, MNT 57.8 million, MNT 47.3 million, and MNT 8.1 million
respectively traded in 2011.
Electricity competitive (auction) market
The auction organized among the generators based on their offered generation
tariffs and their growth in electricity demand is defined as the competitive market.
According to the experiences of competitive markets in foreign countries,
usually the right to supply electricity is awarded to the generator based on the
lowest offered price.

Annual report 2011

19

ENERGY REGULATORY
COMMISSION

However, in the Mongolian case, the lowest generation tariff will not be ranked
in first place. Instead, the generators who offered to reduce their generation tariff
by a higher percentage will be ranked in first. This affords an opportunity for the
power plants with significantly different tariffs to have an equal right to participate
in the auction market. Besides, due to the specific features of the electricity market
of Mongolia, we organized the auction market only on the growth of electricity
demand.
The auction market commenced operation on 1 August 2007. According to the
Electricity Auction Market Temporary Rule approved by the ERC, the National
Dispatching Center LLC developed and approved an Auction organization rule for
the electricity competitive market. In total, 4.45 million kilowatt-hours of electricity
which is equal to MNT 281.7 million traded in 2011 in the auction market. Power
Plants participated in the auction market decreasing their energy tariff by 0.2%.

V. TARIFF AND PRICE REGULATION

In 2011, ERC resolved 73 requests raised by 48 companies regarding the
licensees tariff regulation, bonuses or penalties resulted by performance
agreements, which enabled additional MNT 70.9 billion sources for the sector
companies.

The results of operational performance of the Licensees in 2011

The quarterly and annually performance indices of the energy licensees
were regularly assessed by the ERC in 2011. In each of these assessments, the
revenue, profit, loss, account payables and receivables, and financial ratios etc
of the economical indices and power plants own-use rate, conditional fuel rate,
transmission and distributions losses etc. of the technical indices of the sector
were evaluated in detail. Quarterly assessments of each licensees balance sheet are
promoted in last several years which lead to benefits such as providing management
of licensees and consumers with various updated information. In first half of 2011,
the assessment was made for 44 Licensees.
2011 results shown that totally 4,450.3 million kWh of electricity was generated
by thermal power plants in Central, Western, Eastern, Southern and Altai-Uliastai
energy systems; 44.4 million kWh by hydro power plants; 12.8 million kWh by wind
& solar plants; 10.8 million kWh by diesel stations. Moreover, 268.7 million kWh of
electricity was imported from Russia and 21.5 million kWh of electricity was exported
to Russia. Meanwhile 3,424.9 million kWh of electricity and 6,567.3 thousand Gcal
of heat was distributed to end users.
Annual report 2011

20

Amount of electricity distributed to end users increased by 7.2% from the last
year, while heat distribution increased by 1.4% from last year respectively.

In 2011, the 19 largest energy licensees had a total operating revenue of MNT
329.6 billion and expenditures of MNT 368.8 billion; resulting in operational losses
of MNT 39.2 billion. Balance loss after tax payment reached up to MNT 2.2 billion. In
2011, 7 companies in central region and 6 companies in local region were subsidized
totally MNT 32.7 billion form the State budget.

ENERGY REGULATORY
COMMISSION

In 2011, energy licensees supplied totally 447.8 thousand consumers with

electricity, from which 7.0% or 33.5 thousands are enterprises and 93.0% or 414.3
thousand are residential consumers.
A total of 9,603 employees of 19 largest licensees worked in the sector in 2011
with an average monthly salary of MNT 670.0 thousand.
Approximately MNT 7,850.1 million spent on employees benefits in 2011 and
on average MNT 817.5 thousand per person was allocated annually.
In 2011, the ERA focused on the receivables and payables of the energy licensees
which are most challengeable issues of the Energy sector. Accordingly, we made
monthly analyses on the issues, informed our conclusions to the companies and
public through our website.
In 2011, receivables of 19 largest licensees from consumers and entities amounted
MNT 32.4 billion, payables to raw materials and spare parts suppliers was MNT 24.6
billion. The Licensees receivables increased by MNT 92.8 million and payables cut
down by MNT 4.6 billion from the beginning of the last year.
This positive results produced from the factors such as State budget subsidize
for central regions energy companies; postponed payments of long term loan; tariff
regulation and increased revenue regarding the consumption increase and initiative
efforts of executive director etc.

Internal auditing function

ERC established an auditing function in order to improve operational cost
management and monitor allocation of resources and efficiency of expenditures of
the energy companies. In the period of 2006 - 2010, auditing team performed 26
audits in 3 directions.
In 2011, auditing team worked in Nalaikh Heating Station SOJSC and revised
execution of recommendations of Performance auditing in 2008.

About end user tariff regulation

For the purpose to collect a financial source necessary for normal and
reliable operation of the Licensees through the tariff policy, the Energy Regulatory
Commission has been permanently revising the suggestions and account reports
submitted by the companies and occasionally reflecting the rationale expenditure
increase in their tariffs.

Annual report 2011

21

ENERGY REGULATORY
COMMISSION

The tariff-related proposals submitted by the energy license-holding companies

were revised, the issue concerned with the changes in the energy end users tariff
was discussed at the XI meeting of the Regulatory Board held on April 12, 2011, and
consequently the electricity and heat consumption tariffs for the end users of the
central and eastern regions were renewed and ratified.
The tariff increase regulations were made based on the nature-imposed
necessity to regulate the prices and tariffs of the electricity and heat supplied to
the consumers on the one hand, and the execution of all possible measures directed
towards reducing the load on the consumers by lowering the energy cost and
acquiring concrete Governmental support using the internal resources on the other
hand.
The orientations followed in the tariff increase process are:
For the purpose to commence the work to bring the electricity tariff closer
to the actual costs from the economic entities and enterprises engaged in
mining extraction and processing, the tariff of electricity consumption of
consumers of this category was increased by 20,2 MNT/kWh;
The electricity tariff supplied to other enterprises and organizations was
increased by 8,20 MNT/kWh;
The electricity tariff consumed by residential consumers was increased by
4-4,20 MNT/kWh;
The tariff for apartment heating and residential consumption hot water
was increased by 12%;
For the first turn, the tariff for the mining extraction and processing
industries was increased by 100 MNT/kWh by bringing it closer to the
actual costs;
The preferential tariffs for the night hours consumption werent changed;
The prices and tariffs for Electrical Transport JSC were not increased;
The tariffs for heating of industries and economic entities werent changed.
The tariffs for the electricity consumption of vulnerable social groups
werent increased;

Annual report 2011

22

Electricity tariff
Electricity tariff 1.Central region
Chart 7. Chart 8.

ENERGY REGULATORY
COMMISSION

Ger district
90
77

81

80

70

70

60

60

50

84
79.8

MNT/Wh

MNT/Wh

80

Apartment
90

45

40

50

45

40

30

30

20

20

10

10
0

0
2001

2010

2001

2011

2010

2011

Chart 9. Chart 10.

Industry and Enterprises

Mining exploration and cultivation

100

120

100

79.8

80
79.8

70
MNT/Wh

80
MNT/Wh

88

90

100

60
45
40

60
50

45

40
30
20

20

10
0

0
2001

2010

2011

2001

2010

2011

Annual report 2011

23

Heating tariff 1.Central region

Chart 11.

Chart 12.

Heating tariff for hot water

ENERGY REGULATORY
COMMISSION

Heating tariff for apartment

1924

2000

341

350
304

1718
300
250

1282
MNT/2

MNT/person

1500
1145

200
160

1000
150
100
500

400 400
50
0

0
2001

2010

2011

2001

2010

2011

Chart 13.
Heat for Industry and Enterprises
350

345 345

323 323

298 298

300

MNT/3

250
200

170

191

170

150
100
50
0

Ulaanbaatar

Darkhan
2001

2010

Erdenet
2011

The tariff of calculating the payment for thermal power for heating the residential
consumption hot water using the hydrometer was renewed and approved.
The proposal on the tariffs of the electricity to be purchased by Dornod region
electric power system from the Republic of China and sold to the consumers
of Erdenetsagaan soum, Sukhbaatar province was developed, discussed at the
meeting of the Regulatory Board, and approved as 100 MNT/kWh;
The wholesale tariff of electricity to be imported by ZMZ LLC from the Russian
Federation and realized at the domestic market was revised and approved as 159
MNT/kWh;
The proposal on tariff increase delivered from Baganuur Heating Station was
revised, discussed at the meeting of the Regulatory Board held on October 04,
2011, and the tariffs for the consumers were increased by 12-20%.
Annual report 2011

24

The tariff proposal for calculating the payment for thermal power for heating
the residential consumption hot water of Ulaanbaatar city entities, organizations
and households using the hydrometer was developed, the relevant studies were
conducted by each of Ulaanbaatar District Heating Network SOJSC, housing &
public utility companies, and the season-based tariffs were approved as 700-1050
MNT/m3.

Altai-Uliastai energy system

Western energy system

Dalanzadgad

Eastern energy system

Ger district

Apartment

Ulaanbaatar

Other cities
and center
of province,
which
connected to
central grid

Ger district

Classification

Central region

Apartment

Measuring unit Central energy

system

ELECTRICITY SALE TARIFFS FOR END USERS /VAT excluded/

10

90

90

90

90

90

90

10

84

79.8

60

79.8

ENERGY REGULATORY
COMMISSION

Mining industries
1

Simple meter

Time use of meters /3 parts/

MNT/kWh

100

100

100

a. Daytime consumption / 06.00 am 17.00 pm

MNT/kWh

100

100

100

b. Evening consumption /17.00 pm -22.00

pm/

MNT/kWh

179.4

179.4

179.4

c. Nighttime consumption /22.00 pm 06.00 am/

MNT/kWh

46

46

46

Industrial users, enterprises and organizations

1

Simple meter

Time use of meters /3 parts/

MNT/kWh

88

88

88

a. Daytime consumption / 06.00 am 17.00 pm

MNT/kWh

88

88

88

b. Evening consumption /17.00 pm

-22.00 pm/

MNT/kWh

155.2

155.2

155.2

c. Nighttime consumption /22.00 pm 06.00 am/

MNT/kWh

46

46

46

Electrical transport /Trolley company/

MNT/kWh

49.2

Lighting of public streets and squares in cities and center of provinces

a. Daytime consumption /06.00 am 19.00 pm/

MNT/kWh

88

88

88

b. Evening and nighttime consumption

/19.00pm -06.00am/

MNT/kWh

40

40

40

Entrance lighting for Condominium Owners Associations of public apartments

a. Daytime consumption /06.00 am
- 21.00 pm/

MNT/kWh

88

88

b. Evening and nighttime consumption

/21.00 pm -6.00 am/

MNT/kWh

40

40

Residential consumers

Time of use meter /2 part/

a. Daytime consumption /06.00 am 21.00 pm/

MNT/kWh

84

84

84

b. Evening and nighttime consumption

/21.00pm -06.00am/

MNT/kWh

40

40

40

Simple meter

MNT/kWh

Residential consumers in ger district and apartments

84

81

a. Monthly consumption is up to 150 kWh

MNT/kWh

74

71

b. Monthly consumption is from 151 kWh up

to 250 kWh

MNT/kWh

79

76

c. Monthly consumption is above 251 kWh

MNT/kWh

84

81

84

81

Residential consumers in ger district and apartments in cities and center of provinces
a. Monthly consumption is up to 100 kWh

MNT/kWh

74

71

b. Monthly consumption is from 101 kWh

up to 150 kWh

MNT/kWh

79

76

c. Monthly consumption above 151 kWh

MNT/kWh

84

81

Annual report 2011

25

ENERGY REGULATORY
COMMISSION

10

Residential consumers in ger district and apartments in cities and center of provinces
a. Monthly consumption is up to 50 kWh

MNT/kWh

b. Monthly consumption is from 51 kWh

up to 100 kWh

MNT/kWh

c. Monthly consumption is above 101 kWh

MNT/kWh

74

79

84

Monthly average consumption for calculating payment of residential consumers without meter
a. Apartment

MNT/kWh

320

200

200

200

b. Ger district

MNT/kWh

250

150

150

150

Vulnerable consumers tariff

a. UB -100 kWh, Darkhan and Erdenet

-75 kWh, Others are up to - 50 kWh

MNT/kWh

39

b. UB -101 kWh, Darkhan and Erdenet

-76 kWh, Others are above - 51 kWh

MNT/kWh

58

HEAT SALE TARIFF FOR END USERS /VAT excluded/

CITIES

Residetial
MNT/M2

NonResidetial
MNT/M3

Hot water MNT/person/month

Heat counted by meter

MNT/Gcal

Heating season

Non heating
season

Rsidential

Nonresidential
20,886

Ulaanbaatar

341

323

1,282

1,924

9,824

Darkhan

341

298

1,282

1,924

7,879

16,600

Erdenet

341

345

1,282

1,924

7,879

22,556

Dornod

341

527

1,282

1,924

19,236

Dalanzadgad

304

600

57,250

Nalaikh

304

530

1,145

1,718

24,400

Baganuur

341

697

1,282

1,924

41,147

Tariff regulation for Licensees

The policy and orientation to be pursued in the approval of the tariffs-2011 for
the Licensees were defined, and the issue concerned with the tariffs to be followed
beginning from May 01, 2011 in accordance with the aforementioned orientation
was discussed and approved at the meeting of the Regulatory Board held on the
27-29 of April 2011.
In connection with the changes in the electricity and heating tariffs of the
consumers to be followed beginning from May 01, 2011, the increases in electricity
cost and heat-supply marketing of 11 companies engaged in housing service
companies such as Batbayan burd LLC, Dulaan Urguu LLC, Iven Ekh LLC, Open
House LLC, Unur Khotkhon LLC, Khairkhan uul urguu LLC, Khukh Asar LLC,
Sunny House LLC, SIMS LLC, Ema & B LLC, and Father, Mother & Son LLC,
the rate allotted for 1 tugrig of marketing was renewed, discussed and approved at
the meeting of the Regulatory Board held on April 29, 2011.

Annual report 2011

26

Works done in order to reduce debts and receivables, and improve the
financial benchmarking:
Based on the operational performance of the first three quarters of 2011, the
proper level of financial relations was defined for each of the 19 larger Licensees,
and relevant studies on necessary measures for reaching their level were carried out,
and the required methodology was identified.

ENERGY REGULATORY
COMMISSION

Following measures were taken in order to improve the financial status and
financial relations performance of the companies and reduce debts and receivables.
A certain portion of the subsidy is computed separately from the tariff
income for the purpose to reduce the debts and receivables;
The issue concerned with the debt amount of 1,5 billion tugrigs to be
paid by Ulaanbaatar Electricity Distribution Network SOJSC to the stateowned companies like Thermal Power Plant-2 SOJSC, Thermal Power
Plant-3 SOJSC, and Thermal Power Plant-4 SOJSC accumulated by the
year 2011 was discussed at the meeting of the Regulatory Board, the
relevant tariff regulations were made by the resolution #103, 2011 of the
board, and consequently, the company settled the payment of the debt by
the end of December 2011;
Furthermore, upon the resolutions #107,108 and 109, 2011 of the ERC, the
obligation to pay off the coal mines debts from the capital concentrated
from the receivables of Ulaanbaatar Electricity Distribution Network
SOJSC was given to the state-owned companies such as Thermal Power
Plant-2 SOJSC, Thermal Power Plant-3 SOJSC, and Thermal Power
Plant-4 SOJSC and the question was duly implemented.

Studies and investigations

The experts from the Energy Regulatory Commission carried out the studies
and investigations in following trends, and prepared the relevant presentations and
materials. These are:
There was conducted the consumers questionnaire among the central
region and other local electricity distribution companies, thermal power
plants, and housing service companies; and the results of the survey were
synthesized on the national and Capital city scales to acquire an extensive
survey on consumers.
In accordance with the plan for implementing the Parliament resolution
#72, the on-site investigations were conducted over the operations of
the enterprises like Chandmani Ilch LLC of Dornogobi province, Selenge
Energo LLC of Selenge province, Uvs Heating Station LLC of Uvs
province, Badamlakh Dul LLC of Khovd province, and Cement and Lime
SOJSC of Khutul city; the comparative study between the actual costs

Annual report 2011

27

and the currently followed tariffs was carried out, the tariff directives
to be further followed for the consumers were defined, and the relevant
recommendations - provided.
ENERGY REGULATORY
COMMISSION

The computation of the capital required for the implementation of the

Mongolian Law on Elimination of Capital city Air pollution, development
of the procedures on allowance grant for electricity consumption price, the
number of households to be involved in the allowance and the amount to
be spent on price reduction was made.
In connection with the implementation of the measures for providing an
incentive of the electricity consumption tariffs for the Capital city gerdistrict households located in the air quality improvement zones, the
question how to choose households to be included in the incentive was
clarified at the required level, and the relevant Recommendations for
Consumers were prepared and published.

VI. THE ERAS ACTIVITY ON PROTECTION OF RIGHTS OF

CONSUMERS AND LICENSEES
Program on enhancement of public education in Energy sector
In 2010, the Energy Regulatory Commission developed and adopted the Energy
Tariff policy to be pursued in 2011-2014. We face a need to operate with the
concrete policy in the trend to introduce and publicize to the public the issues
concerned with the Energy sector activity, urgent problems required to be settled
as immediately as possible as well as the long-term Tariff policy. Beginning from
October 2010, we implemented a number of significant measures jointly with the
USAID, and the expected outcomes have been achieved.

Why we need program?

One of the main principles to be followed by the regulatory organization is
The Principle of Openness. The activities and procedures of the regulatory body
must be open and clear to the public to involve the interests of partner organizations
and individuals. In order to gain a confidence for the regulators it is necessary to
develop, publish in media and bring up for public discussion all type documentations
concerned with decision-making. The words and phrases of those documents must
be simple and explicit to the public. Furthermore, the data and information contained
therein must also be correct and clear.
Annual report 2011

28

This Program on enhancement public education in the energy sector has been
worked out within the framework of the Efforts for developing and implementing a
program on enhancement of public knowledge of energy sector activities, difficulties
and tariff perspective policy reflected the authority objectives approved by the

Order #01, 2011 of Chairman of the Energy Regulatory Commission (ERC). The
purpose of the program is to make the public understand the necessity to transfer
the energy sector to the market relations, provide the consumers with correct and
clear information on the activities of the energy sector, educate them about the
benefit and proper consumption of energy, change the perception and tendency
of the main decision-makers, economic entities and enterprises, professional
associations and media persons through promoting a close cooperation with them,
create a positive public opinion by arising the social reputation of the ERA. The basic
theme of the program consists in the question How to use the energy properly and
reasonably? This issue has a double target to provide a support for transferring
the energy sector to the market relations. Also, there were comprised the items
concerned with the ways and methods for program implementing, works to be
done, collaboration groups, and funding.

ENERGY REGULATORY
COMMISSION

The program is developed with the joint efforts of Mr. Megan ONeil, the
project relations manager from the USAID/EPRCP and Mr. Amarsanaa, the media
expert.
Following works have been carried out within the framework of the program.
These are:
In total, 15 news, publications and interviews on the issue of tariff
alteration have been released by the Energy Regulatory Commission to the
daily newspapers and internet sites.

Picture 4. The Memorandum of Understanding was endorsed with the Authority

for Fair Competition and Consumer Protection
Annual report 2011

29

 Four series of transmissions named on Energy value have been broadcasted

9 times through the Mongolian National Broadcaster and other TVs in addition
to 5 interviews given.
The brochures or handbooks designated for the consumers have been
developed, published and distributed.

ENERGY REGULATORY
COMMISSION

The measures under the title Campaign for listening consumers have been
organized in the provinces like Arkhangai, Uvurkhangai, Darkhan-Uul, Selenge,
Khentii and Dornod.
The handbook Capital city air quality enhancement designated for the ger
district zones of the city have been developed, published and is being now
distributed to the public.

On January 26, 2011, Mr. Ganbaatar Kh., /Executive Director of the Mongolian
Employers Federation/ Head of the Part-time Advisory Board under the jurisdiction
of the Regulatory Board of the ERC had a round-table meeting with the journalists
and discussed the issues concerned with the tariff policy. In total, 15 journalists and
reporters had a part in the meeting.
In total, 78 complaints submitted by the licensees and consumers on the
issue of protecting their interests have been revised and settled.
By the year 2011, 78 complaints /written-68 and website-10/ were submitted
from the licensees and consumers to the Energy Regulatory Commission on the
issue of protecting their interests as well as on the activities of licensees and those
complaints have been duly revised and settled.

Chart 2. Complaints resolution by year:

Annual report 2011

30

Year

2001-2002

46

2003

34

2004

72

2005

75

2006

70

2007

66

2008

56

2009

49

2010

64

10

2011

78

Total

620

Number of complaints resolved

The complaints submitted from the consumers are classified /in per cents/ as
follows:
Concerned with the Heat and hot water payments 26,6%
Concerned with the electricity payments 21,8%

ENERGY REGULATORY
COMMISSION

Concerned with the heating payments 6,4%

Concerned with the heat supply 3,8%
Concerned with the electricity supply 11,5%
Others - 29,5%

So, the works intended to settle these complaints of the consumers were
revised in accordance with the relevant rules and regulations by carrying out the
works to conduct the on-site inspections jointly with the relevant licensees, organize
meetings with consumers and suppliers, sent official letters, state inspector demand
and notice, provide the licensees with the operational guidelines, and to keep a
control over the activity and problem-settlement of the relevant licensees.
During the process of settling the complaints submitted from the consumers,
it has been revealed that the complaints connected with the payment for heating
the hot water occupy a major percent, and in connection with this, we have made
a request for the licensees to issue the performance of the ERC Resolution #163,
2008, and thereafter the payment for heating the hot water has been renewed
upon the Resolution #95 from October 04, 2011 of the Regulatory Board of the ERC.

Picture 5. During the Open Day of the Ministry of Mineral Resources and Energy

Annual report 2011

31

ENERGY REGULATORY
COMMISSION

The majority of the complaints related to Ulaanbaatar Electricity Distribution

Network SOJSC are connected with the payments for electricity. These arguments
are caused at first, by the irresponsibility of energy supplying officials, and on
the other hand, by the insufficient knowledge of consumers about the Laws and
regulations on energy consumption.
For the reporting period, there have been conducted on-site inspections over
the activity of the Customer Service Centers of Ulaanbaatar Electricity Distribution
Network SOJSC including Chingeltei, Bayangol and Songinokhairkhan, and the
relevant official conclusions and operational recommendations were delivered to the
Ulaanbaatar Electricity Distribution Network SOJSC.
Organized a Theory and Practice Conference, titled on Energy Regulationin 10 years
The Energy Regulatory Authority /by the old name/ was established following
the Resolution #83 of the Government of Mongolia, issued on 16 April 2001 in
accordance with the Energy Law approved by the Parliament on 01 February, 2001.
On the occasion of the 10th anniversary of establishment of the ERC, the
ERC organized Theory and Practice Conference, titled on Energy Regulation- in
10 years, on June 30, 2011. Intend for the conference published a book received
presentations from Ministry of Mineral Resources and Energy, Energy Regulatory
Commission, energy sector enterprises, Non-government organizations which works
on energy issues and private sectors. Through this conference 9 presentations
have been made such as, Energy tariff, pricing regulation and current situation
of Licensees finance and economy and its further goals, On issue of electricity
wholesale market and Study on current situation of energy sector of Mongolia
compared with international level.

Annual report 2011

32

Picture 6. Mr. Munkhtulga, Head of the Licensing Division made a presentation

On issue of electricity wholesale market in the Theory and Practice Conference

In frame of the anniversary event, ERC published a book Customer guide

for the energy consumers. The measures under the title Campaign for listening
consumers has been organized in the provinces like Arkhangai, Uvurkhangai,
Darkhan-Uul, Selenge, Khentii and Dornod and solved some problems occurred with
consumers and transferred some problems to the Licensees in conformity with their
main duty.

ENERGY REGULATORY
COMMISSION

Website and electronic information system

For the purpose to make the activities of the Energy Regulatory Commission
open and clear to the broad public, we present through our website the general
introduction of the authority, its regulatory policy and principles, decisions and
resolutions adopted by the Regulatory Board, energy-related Laws and regulations,
and other relevant information and news to the consumers, Licensees and the public.
All the interested persons and organizations would be fully able to acquire
necessary and important information on the authority from the website which is
updated regularly. Website is: http://www.erc.mn
In 2011, we established a data fund on the Licensees technical, financial and
economic activities, and successfully started the implementation of the informationexchange micro-project Electronic information system. Within the framework
of the project, there were created the system development module sections like
the Payables, Receivables, Coal payment, Electricity power loss and the own use
electricity, the system development was completed and successfully tested in 100%.
In addition, there was issued a system exploitation handbook and on December
02, 2011, there was organized a training-workshop for the representatives of the
Licensees. The reports for the month of November have been successfully received
through on-line. Also, within the framework of the project, the internet network
was completely renewed on the scale of whole the organization. Transferring the
procedure of monthly report submission of the Licensees to the on-line system with
the use of information technology has become one significant step to conform the
operation of the organization to the modern advanced methodology.

Annual report 2011

33

PHOTO ALBUM

ENERGY REGULATORY
COMMISSION

T.Tserenpurev appointed as a Chairman of ERC.

ommissioners
Annual report 2011

34

ENERGY REGULATORY
COMMISSION

The meeting with the management of Ulaanbaatar Railway.

The meeting with the officials of coal sectors.

Annual report 2011

35

ENERGY REGULATORY
COMMISSION

The meeting with the officials if ADB.

Annual report 2011

36

The Memorandum of Understanding was endorsed with the Authority for Fair
Competition and Consumer Protection.

ENERGY REGULATORY
COMMISSION

During the meeting with Teruhisa Oi, Specialist of ADB.

Ms.Sabine Muller, ountry director of GIZ visited the ERC.

Annual report 2011

37

ERC COOPERATION

ENERGY REGULATORY
COMMISSION

THE
WORLD
BANK

Japan International Cooperation Agency

Annual report 2011

38

ENERGY REGULATORY
COMMISSION

ENERGY REGULATORY COMMISSION

14201 Ulaanbaatar, Sukhbaatar duureg,
Ikh surguuliin gudamj 2a, Tel/Fax: 976-11-319335

Annual report 2011

Website: http://www.erc.mn/
E-mail: info@erc.mn

39