Romania: New Energy Law regulates that gas consumers bear the cost of connection of new industrial customers

14. August 2020. / SEE Energy News

Natural gas consumers will bear the costs of connection to the network of the new industrial customers if connection projects are shorter than 2.5 kilometers, according to the new Energy Law in Romania.

The investments made for the connection to the network on short distances are to fall into the category of recognized costs included in the regulated distribution and transmission tariffs practiced by the profile operators, part of the total gas price paid by final consumers.

According to the National Regulatory Authority for Energy (ANRE) order on the modification of the methodology for establishing the regulated distribution tariffs, capital invested includes tangible and intangible assets, related to the natural gas distribution activity, the costs of connection to the distribution systems, except for the costs related to the part of the extension and connection installation exceeding 2,500 meters in length, resulting from the final, non-domestic customer connection, located on the territory of the administrative-territorial unit for which it has a concession for the public distribution service, completed as a result of the connection requests registered after the date of entry into force of the provisions of law.

Another order regarding the modification of the methodology for establishing the regulated tariffs practiced by the natural gas transmission system operator Transgaz stipulates that the costs implied by the connection of new customers to the national gas transport system are treated as invested capital in intangible and tangible assets, related to the natural gas transmission activity. However, both distribution and transmission tariffs will eliminate the royalties paid by state operators for the concession of grids.





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