Romanian power producers sue state market regulator over regulated prices

By bne IntelliNews January 27, 2014

Romanian state-controlled power producers Hidroelectrica and Nuclearelectrica have launched lawsuits against market regulator ANRE over the regulated prices set for the electricity deliveries of the two companies to households, news agencies Agerpres and Mediafax announced.

Hidroelectrica claims that the price set by ANRE is below the production cost. Nuclearelectrica also complains about ANRE not accepting certain elements in the calculation of the regulated price.

ANRE has decided that households would be supplied by a basket of hydro and nuclear power, a move which aims to keep the prices down. Separately, the electricity market liberalisation stipulates that a gradually rising share of the power delivered to households is to be purchased by the suppliers from the free market. The share is 20% starting January 2014 and 30% starting July 2014 – rising to 100% at the end of 2017.

Hidroelectrica also filed a complaint at the antitrust body.

Hidroelectrica and Nuclearelectrica account together for some 50% of the country’s power production. They are controlled by the state, but the Property Fund [Fondul Proprietatea] owns some 20% in Hidroelectrica and 10% in Nuclearelectrica. In addition, 9% of Nuclearelectrica is owned by other private shareholders after the IPO carried last year. A similar 15% IPO is planned this year for Hidroelectrica.

Unofficial sources quoted by Agerpres disclosed that ANRE has asked Hidroelectrica to supply 5.3TWh of electricity this year [vs. 3.9TWh last year] at a price of RON 115 [EUR 25.6] per MWh [vs. RON 125 per MWh in 2013]. Nuclearelectrica was also asked to supply 3.7TWh of electricity at RON 145 [EUR 32.2] per MWh, the sources said.

Hidroelectrica’s annual output is around 15TWh, while Nuclearelectrica generates some 12TWh per year.

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