about us | newsletter | contact | archive | members area
Nicolae Ghibu, Certsign
Regulations will come gradually and will cover all areas»

New regulations adopted by ANRE will have a strong negative impact on consumers and endanger 4.500 jobs, says ACUE

The electricity distributors members of the Federation of Associations of Energy Utility Companies (ACUE) are deeply concerned about the negative impact on networks and consumers of the methodology to determine electricity distribution tariffs and the lower regulated rate of return applied to these tariffs, adopted by the Regulatory Authority for Energy (ANRE).

2018-09-20 12:02:31

ACUE claims that Romania's energy strategy, under approval process and in alignment with the development directions of the European regulatory framework, highlights the imperative need for investments in the sector, which is in contradiction with the regulatory provisions adopted by ANRE, which will lower the volume of investments and increase the gap between Romania and other EU countries.

"The electricity and gas distribution sector is strategic for the economy and should be regulated from this perspective; as such, a clear, predictable and stable regulatory framework is required, to stimulate investments in order to increase quality of services to the benefit of consumers," says ACUE. "A significant reduction in investments will have as final effect a lower quality of service, affecting the household consumers, the industrial consumers and the competitiveness of the Romanian economy."

Lower investment levels would cancel the effects towards improving service quality registered as a result of the approximately 1.2 billion Euro invested over 2014-2017 in electricity distribution networks, respectively lowering average interruption times from 700 minutes to 284 minutes per consumer per year. For this year, electricity distribution operators have ongoing investments totaling around 400 million Euro.

In addition to the impact on consumers, studies show that the new regulations for electricity distribution could lead to a loss of contribution to GDP of 13.7 billion RON and the loss of approximately 4500 jobs in the economy, in the period 2019-2023, which will also lead to lower fiscal contributions paid annually to the state budget by 1.2 billion RON as fiscal revenues from profit taxes and social taxes and contributions.

Based on the principle of transparency in the regulatory process, ACUE had requested ANRE to delay their adoption for six months, to provide the necessary time for a real consultation and a correct analysis of the effect of the proposed indicators, in order to avoid significant risks raised by these regulations to the capacity of operators to undertake investments necessary for the modernization and development of networks and for improving distribution service quality.

There are 0 comments:

Validation Code

0 Comments  |  1425 Views
Daily Info
Smart city is not a fad, it's a necessity

In June 2018, the ranking of the most "smart" cities in the world was published. In other words, the most advanced cities in terms of human capital, social cohesion, the econo...

Ondrej Safar, CEZ Group: "Romania can become a hub for international smart solutions providers"

"We are already in the digital age, so the upward trend of implementing smart solutions is inevitable in all areas," he tells The Diplomat-Bucharest. "Especially in terms of u...

Telekom Romania, a strong supporter of Smart City development in Romania

Just like many other countries in the world Romania is now facing an unprecedented growth of the urban population, which can be both beneficial and detrimental for the society...

In the industrial era, the fight was for finite material resources. Not anymore

Now organizations fight and develop themselves for and around their talent. In a nutshell, getting ahead in today's business world is all about attracting and inspiring an e...

Richard Sareczky, Mol Limo: "We look at expansion locations across CEE including Romania"

Consumer mobility behaviour is changing, leading to up to one out of ten cars sold in 2030 potentially being a shared vehicle and the subsequent rise of a market for fit-for-p...




More on News
President Iohannis urges Romanians to be more united, stay involved in modernizing Romania

Romania's President Klaus Iohannis urged Romanians in France to be more united and stay involved as much as they are now in helping modernise Romania.

1 Comment

ArcelorMittal receives binding offer for European assets from Liberty

British-owned Liberty announced a conditional agreement to buy four European steel plants, employing more than 12,500 people.


Revolut gets European banking license

Fintech startup Revolut is now officially a bank. While the startup initially expected to get its European banking license during the first half of 2018, the company has fi...


The Romanian labour market needs a well-thought approach, says FIC

The Foreign Investors Council (FIC) has signaled in the past 2-3 years that its members are anticipating increasing strains on the Romanian labour market because starting w...


Dacia receives 115.8 million RON in state aid from the Finance Ministry

The Romanian Finance Ministry has signed five more grant agreements under the state aid scheme, and among the beneficiaries are Automobile Dacia, with RON 115.8 million.


EBRD cuts economic growth forecast for Romania

Romania's economy will grow by 4.2 per cent this year and by 3.6 per cent in 2019, according to the most recent forecast released by the European Bank for Reconstruction an...

OTP Bank Romania signs investment funds distribution deal with Eurobank Fund Management Luxembourg

OTP Bank Romania signed a partnership with Eurobank Fund Management Company (Luxembourg) for the distribution of investment funds in Romania. Thus, from December 1st, OTP B...