Romania: Rate of return regulated for energy suppliers, SEE Energy News
Romanian National Energy Regulation Authority (ANRE) has approved that change of the regulated rate of return of electricity and gas distribution operators, setting it at 6.19 %.
The statement from ANRE said that the regulated rate of return (RRR), expressed in real terms, before tax, applied to the establishment of tariffs for the electricity distribution service provided by the distribution operators is set at 6.19 %. At the same time, by amending another order, ANRE stipulates that RRR on invested capital granted for tangible and intangible assets related to the natural gas transport activity is the one approved for the electricity and gas distribution activity for the fourth regulatory period.
For Romania, however, an emerging market with growing CDSs after the crisis (credit default swaps – a tool that defines country risk, for foreign loans), the rate of return on Hovernment securities and interest rates could inflame after the coronavirus crisis, and as a consequence ANRE may have to change this index again.