Romania, Electricity distributors have posted losses of more than 600 million euros

, SEE Energy News

According to CEO of Electrica Group Corina Popescu, Romanian electricity distributors have posted losses of more than 600 million euros from the difference between the fee recognized in the bills and the market price, which could affect their ability to access European funds for modernizing the distribution networks.

Popescu stressed that these networks, in order to operate, have their own technological consumption, which for most distributors is below 10 %. Last year, the distribution fee (recognized in invoices) was set for an average price of 60.7 eu- ros/MWh, and the market price was 106 euros/ MWh, so there is a difference of over 40 euros/ MWh which was not covered by the distribution fee. Multiplied by 6 TWh (technological consumption of the network) and that is with how much the distribution operators financed the market last year.

According to her, things are even worse this year, as the fees recognize electricity price of 91 euros/ MWh, but in the market the prices are reaching over 200 euros/MWh.

It is more than 600 million euros for the entire distribution system, which has an impact on the distributor’s cash flow and their ability to access European funds. And without the development of the transmission and distribution networks Romania cannot keep up with electricity generation projects.