Romania: New rules for issuance of licenses in power market, difference between traders and suppliers

13. February 2015. / SEE Energy News

The proposals of Romanian regulatory agency ANRE will not restrict suppliers from entering into cross-border import and export transactions.

This statement should in some way clarify the intentions of the regulatory agency, which have been in the spotlight after being released recently.

The rules regulate the process of issuance of trading licenses. ANRE monitors licensing which allows participants to perform import and export transactions, as well the trading on the platforms managed by OPCOM stock market.

In line with the new rules, companies can possess either permit to trade or permit to supply. And contrary of what some market participants comprehended, the new rule only makes the difference between the status of a trader and status of a supplier. The supplier will have the right to supply electricity to final customers, as well as all the rights that are granted to traders. “After the new rules go into effect, anyone who has a license to supply can exchange it for a trading permission.

However, the owner of a trading license will not have the right to supply final customers. This provision liberates the traders from additional paperwork, arising from the possession of a license to supply.

Some traders have expressed their concern that the new rules will prohibit the participation of suppliers in the import and export operations, given that such licenses will be issued to traders only.

In that case, the supplier would have to be split into two separate legal entities to be able to carry on trade operations outside Romania borders, which would affect the already signed long-term contracts.

Most traders expressed their concern over the frequent changes of regulations.

In 2012 the Romanian government banned trading outside the organized market OPCOM. Then in 2014, after several positive trends, such as the launching of the OTC platform, the government has banned all non-standard contracts on OPCOM’s platforms for trading in advance.

This prohibits any flexibility in contracts, and creates difficulties for producers of green energy, which are to the greatest extent exposed to delivery terms variations.

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