Ing. Marián Nicz, MBA Energy section Ministry of Economy SR Legislation concerning critical infrastructure focused on dealing with emergency in the electricity sector in the Slovak Republic Bratislava Energy Charter Forum - protection of energy networks with a focus on electricity Ing. Marián Nicz, MBA Energy section Ministry of Economy SR 10.10.2014 Bratislava

Contens Basic legislative framework New legislation Competencies of the Ministry of Economy SR Internal Energy Security External Energy Security

The basic legislative framework - emergency situations in electricity and critical infrastructure Emergency situation in electricity sector (Section 20 of Act no. 251/2012 Coll. on Energy, Decree of the Ministry of Economy SR No. 416/2012) Protection of the critical infrastructure (Directive 2008/114/EC on the identification and designation of European critical infrastructures and the assessment of the need to improve their protection; Act No. 45/2011 Coll. on Critical Infrastructure) Emergency: Section 20 of the Act on Energy – the definition of emergency situation, including the basic categories of causes (threats) resulting in the emergency up to system failure of “black-out”: energy-related threats: non- standard operation parameters of the national Power System (SPS) leading to severe loss of generation output or system failure as a consequence of e.g.: severe power imbalance; transferred failure of facilities from abroad (other transmission systems); failure of the critical PS line, substation or node; voltage collapse; human error etc.; and non-energy related risks: incident and crisis situation caused by e.g. a natural disaster, environmental accident, major industrial accident or fire, epidemic or pandemic, loss of integrity of the critical infrastructure elements – e.g. terrorist attack etc. It stipulates market participants obligations in preventing emergency, during emergency and in removing emergency, procedure for declaration and withdrawal of the emergency situation and restrictive measures; exclusion of the right to compensation of damage in case of emergency. Decree of the Ministry of Economy SR No. 416/2012: defines the types of restrictive measures (in the electricity and gas sectors) and process of their application – Consumption Restriction Plan; Emergency Plan; Frequency Plan. Critical infrastructure: The matters concerning protection of the critical infrastructure, including the energy infrastructure, are regulated by both the Slovak and European legislation. Company SEPS, a.s. as the Slovak transmission system operator (TSO), operates the critical infrastructure elements in line with the “Act No. 45/2011 Coll. on Critical Infrastructure”. Field of critical infrastructure protection in Slovakia is regulated by the Act. 45/2011 Coll. on Critical Infrastructure. The law provides for the organization and competence of state administration in CI, the procedure for determining the critical infrastructure elements, operator obligations in the protection of element of CI and liability for breach of obligations. The Government decides on the determination of CI element and its inclusion within the sector as well as the withdrawal from the sector and approves the conception in the field of critical infrastructure. State administration in the area of critical infrastructure is coordinated by the Ministry of Interior. Critical infrastructure sectors within responsibility of the Ministry of Economy - Energy (mining, electricity, gas, oil and oil products) and selected industrial sectors (pharmaceutical, metallurgical, chemical industry) Ministry of Economy announces the Government´s Decision on the designation of critical infrastructure elements and their inclusion into sectors. Operator of the critical infrastructure element is responsible for identifying the authorized person (in accordance with Section 9, point. f) of the Act and processing Security Plan for each element of critical infrastructure (the obligation to introduce by 6 months from the receipt of the notification on the determination of the element and its inclusion in critical infrastructure sectors).

New legislation - emergency situation in electricity Emergency tests in the electricity sector Preventing emergency in the electricity sector Restrictive measures in the electricity sector (in connection with the amended Decree) Amendment to Decree No. 416/2012 (to be adopted) The following definitions are modified comprehensively: emergency in the electricity sector, prevention of emergency in the electricity sector and emergency tests in the electricity sector; the emphasis is put on the preventive measures – emergency tests and creation of the legal framework for their implementation; last time it was in 1994 and 1996 when in the conditions of the Slovak Republic the “start from the dark” tests were carried out for the process of system recovery after “black-out”.

Competencies of the Ministry of Economy SR - security of electricity supply MoE SR, Act No. 575/2001 Competence Act (Section 6) The central state administration body for the energy sector MoE SR, Act No. 251/2012 on Energy: Monitoring of compliance electricity to the security of electricity supply Report on the results of monitoring of security of electricity supply (Art. 4, Electricity Directive No. 72/2009; Art. 7, SoS Directive No. 89/2009) Report on Safety of the Slovak Republic (Act No. 110/2004 Coll. on Operations of the Security Council of the Slovak Republic) Transmission System Operator (TSO) Distribution System Operators (DSOs) Ministry of Economy of the Slovak Republic: ensures monitoring of compliance to the security of electricity supply, adopts measures aimed at ensuring the security of electricity supply, determines the scope of technical safety criteria system and network, determines application of the measures to safeguard security of electricity supply, if it is a threat to the safety and reliability of the system and network. The ministry may impose obligations in the general economic interest on electricity producer, system and network operator, electricity and gas supplier and storage system operator, for them to ensure the security of electricity supply. TSO – SEPS, a. s. - the transmission system operator shall be obliged to ensure reliable, safe and efficient operation of the Slovak Power and Transmission System over the long term under economic conditions with due consideration to the natural environment. Dispatching (SED) is part of TSO, is obliged to perform the tasks of electricity dispatching in the defined territory, system which controls the defined area, and is responsible for the safe and reliable operation of the system for the operational management system and for determining the capacity for use of interconnectors. Regional Distribution System Operators DSOs – Západoslovenská distribučná, a.s., Stredoslovenská energetika - Distribúcia, a.s., Východoslovenská distribučná, a.s. – are obliged to ensure the reliable, safe and efficient operation of the Regional Distribution Systems on part of the “Determined Territory” under economic conditions with due consideration of the natural environment and energy efficiency.

Internal Energy Security Legislation concerning critical infratsructure security (Act No. 45/2011 Coll. on Critical Infrastructure) Energy legislation (Energy Act; Section 20) Incidents and crisis situations (Section 20, par. 1) (Incident and crisis situations, economic mobilization measures, terrorist attack) Incidents reported by the Economic Mobilization Entities (i.e. TSO – SEPS) Valid legislation provides for governance and continuous monitoring of threats and risks in the National Security, including Energy Security and possible threats to integrity Critical Energy Infrastructure Elements (under Act. No. 45/2011) which might negatively impact safe and reliable operation of the Slovak Energy/Power System up to system failures of “Black-Out” type (inter alia Act No. 387/2002 on State Management in Crisis Situations; Act No. 179/2011 on Economic Mobilization; Constitutional Law No. 227/2002 on State Security in the state of war and state of emergency; Act No. 42/1994 on Civil Protection of Citizens)   Notices on incidents or crisis situations provided by economic mobilization entities within the competence of the Ministry of Economy SR (under the Act No. 179/2011 Coll. on Economic Mobilization).

External Energy Security National level (MoE SR) Monitoring impacts of the possible reduction or suspension of energy sources supply for ensuring Security of Energy Supplies, including electricity EU level (European Commission) EU Energy Security Strategy (may 2014) Stress Tests in gas sector Short-term measures Limited impact on electricity sector Within its competencies MoE SR actively opens and discusses the issues of the external energy security during the negotiations in the EU structures, the Energy Charter, the International Energy Agency, and also within actual Slovak V4 Presidency, and other international platforms. The energy section of the MoE pays more attention to the issue also from the viewpoint of the current situation in the Ukraine and UKR-RF relations. On the continuous as well as ad hoc basis the MoE SR, Ministry of Foreign and European Affairs and the relevant partners from the energy sector of the Slovak Republic communicate about the hot issues of the Energy Security.   Actual Analysis of MoE SR regarding potential external energy sources supply restrictions or disruptions (mainly natural gas, oil, but also nuclear fuel and coal) shows: restricted impact on security of electricity supply mainly due to: possible problems with ensuring regulation and stability of the Slovak Power System (as the result of reduced capacity to provide system services) shortfall in supply of nuclear fuel from Russia (after depletion of operators’ stocks) would be a major threat to the security of electricity supply Stress Tests - gas (as a s/t measure from EESS) – based on scenarios of suspending natural gas supply from RF/ transit through UKR – impact on the Slovak Power System MoE SR in cooperatin with TSO – SEPS, a.s. submitted analysis of potential impact of possible gas crises (restriction and/or disruption of Gas Supply according to scenarios prescribed by the EC) which showed: limited impact on security of electricity supply from the point of view of stability of the SPS (mainly as a result of partial failure to supply Ancillary Services by AS providers – loss of indivividual types of AS from 10% up to 35% - secondary control power – which is loss at critical value according to ENTSO-E criteria) almost no impact in the total loss of power production (from 4,5% up to 6%) to cover total SPS load (share of power plants that are using natural gas in total installed capacity (8074 MW) is up to 26%)

Thank you for attention (Marian.Nicz@mhsr.sk)