ANRE: Significant increases in the price of electricity on the regulated market

From July 1, domestic consumers will experience an increase in electricity bills on the regulated market of no more than 8%, according to the ANRE press release.

It is important to know that from 1 July the final price of electricity for domestic consumers will be made up of the price regulated by the ANRE, which has a weight of 10% of the total, and a component that reflects the free market price, which has a weight of 90%.

The transition to the free electricity market

Romania is obliged to proceed towards the liberalization of the energy market from the moment of its accession European Union. The government has received clear orders from the Union leaders, who have established a timetable for the liberalization of prices, specifying that failure to comply with it will force our country to pay harsh sanctions. So, in six months, starting from January 1, 2018, ANRE will lose total control over electricity, and the bill for domestic consumers in Romania will change completely, because the energy consumed will represent exclusively purchases on the free market – stock exchange.

At the moment the energy market is 80% free, from 1 July it will be 90% free and from January 2018 it will be 100%.

The State does not lose total control over the final price: network tariffs remain

It is useful to know that the final price you will be billed for both electricity and gas is made up of multiple taxes imposed by the manufacturer, the transporter and distributor, and finally the supplier.

The state has the leverage network chargeswhich represents an important share, up to 60% from the final price of electricity in Romania. This tariff, it is assumed, will be regulated «forever», as he also stated the president of ANRE, Niculae Havrileț. Network tariffs, as I said before, are distribution and transport tariffs, and the four distributors in Romania benefit from this regulatory privilege: E-ON, Enel, CEZ and Electrica, plus the state company Transelectrica. It is useful to know that their tariffs are created so that these companies can make profits without impasse, and that price regulation is carried out a maximum of 2 times a year, including by ANRE. Stock market prices can change dramatically even in a month, as was also noticed last winter.

The financial data tells the truth

Recent years have seen eloquent financial data, in which this is certainly demonstrated distributors have a constant profit margin of 20-25% and Transelectrica 10-15%.

The press release prepared by ANRE highlights that the regulated part of electricity bills (10%) will decrease by 5.16% and the free market part (90%) will increase by 8.53%.

«On the subject of electricity, the ANRE Regulatory Committee approved ordinance no. 50/2017 regarding the modification of the regulated electricity tariffs applied by suppliers of last resort (FUI) to domestic customers who have not exercised the right of eligibility, with which it was decided to reduce the regulated tariffs applied by the FUI to domestic customers by 5.16%, starting from 1 July 2017 and until the end of this year. Electricity supplied at a regulated tariff represents 10% of the total electricity supplied to domestic customers. Approval of the tariffs of the Competitive Market Component (CPC), with changes to the requests of the FUI, applicable, in the third quarter, to domestic and non-domestic customers, beneficiaries of the universal service. Electricity supplied at the CPC tariff represents 90% of the consumption of domestic customers and is purchased by the FUI exclusively on the competitive market, where the price of electricity has recorded an increase of 24%. compared to the second quarter. For 25% of these tariffs, based on the analysis of market realities and trends, the ANRE deemed a national average increase in CPC tariffs of 8.53% justified», reads the press release.

Source of the news: Agerpress