Romania: ANRE takes measures to reduce the impact of price volatility on suppliers of last resort

Published on 10. April 2017., SEE Energy News

The Romanian Energy Regulatory Authority ANRE introduced changes of the methodology for calculating tariffs that suppliers of last resort apply to consumers due to the situation in which suppliers of last resort found themselves during January and February.

In fact, during the first two months of this year, suppliers of last resort had to buy electricity on day-ahead market (DAM) to cover consumption for end-users that are in their portfolio. However, suppliers of last resort were in a position to take a significant number of customers according to the place of consumption that are in the portfolio of competing suppliers.

During the meeting held on April 5 ANRE approved the amendment of the methodology for the tariffs applied by suppliers of last resort and which aim to:

– Avoid/limit tariff increase that suppliers of last resort apply to end-users, with the possibility of buying electricity in all markets operated by OPCOM, in case of suspension/termination of bilateral agreements on PCSU (Centralized Market for Universal Service);

– Minimize financial risks that suppliers of last resort are exposed to, by expanding the accepted methodology in determining the eligible costs for the purchase of electricity invoiced at CPC tariff, in case the supplier of last resort finds himself in a situation of bilateral agreements suspension/termination on PCSU. In addition, the supplier is entitled to charge an additional fee to customers, except households, taken in the reserve supply regime and who are not eligible for universal supply, for the periods in which the average price on DAM records an increase of over 10% compared to the average price on PCSU.

Electrica, CEZ, Enel and E.ON. are currently suppliers of last resort. Next year, the entry into this market will be provided for other companies.