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.

Related Articles

Poland eyeing second LNG terminal

Gaz-System has selected a contractor to carry out a feasibility study on the construction of a second Polish LNG terminal, the state-owned gas grid operator said on March 27. Poland has recently ... more

Latvia heads off Russian gas mischief with legislation on strategic companies

The Latvian parliament passed amendments to national security and commercial laws on March 23, handing the state the power to block the sale of companies considered strategic. The legislation will ... more

Enea buys French utility out of Poland

Enea has acquired a 100% stake in Engie Energia Polska - the Polish business of French power company Engie - for PLN1.26bn (€290mn), the state controlled Polish utility said on March 14. The ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss