ANRE caps power distributors' ROR at 8.5% until 2018
Romania's energy market regulator, ANRE, capped at 8.5% the rate of return (ROR) applied to investments made by electricity suppliers, cutting down on the previous rate of 10%. The new rate will apply both to the value of investments distributors in this field will make from now on and to the regulatory asset base for power distribution.
Nonetheless, there might be added another 0.5% to the new ROR, provided the distributors direct their investments in smart energy and their technological consumption goes below the threshold established by ANRE.
'The modification is going to be applied to all energy distributors, we have been working on this project since May. The new rules apply for five year since now. Companies that will invest in smart metering might receive another 0.5 percentage points', Niculae Havrilet, president at ANRE, told Mediafax.
This new regulation is mainly designed to attract investments in order to upgrade power distribution networks so that the quality of electricity distribution is increased. That, considering Romania undertook an engagement to EU Commission to introduce the smart metering system in distribution and energy supply by 2020.
Despite Romanian government privatized five of power distributor Electrica SA units between 2004 and 2008, the quality of power distribution has not been improved. The situation is due to the fact that Enel (Italy), CEZ (the Czech Republic) and E.ON (Germany), those who bought the units have exported the profits obtained locally, while they have imported only used equipment said to Constantin Nita, the Minister-delegate for Energy, during a an energy conference.
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