Transcript Main steps in the reform

ROMANIAN ENERGY
REGULATORY AUTHORITY ANRE
ANRE
Challenges in transitioning to a liberalised, competitive market –
Romanian experience
ANRE
Legal Framework
The transposition into national legislation of the provisions of the Third Energy
Package was completed in:
• June 2012 when the Parliament passed the Electricity and Natural Gas Law
no. 123/2012, published in the Official Journal no. 485/16.07.2012
• October 2012 when the Parliament passed the Law regarding the
organisation and functioning of ANRE no. 160/2012, published in the Official
Journal no. 685/2012 (the law was sent back to the Parliament for
reconsideration by the Romanian presidency at the beginning of July 2012)
ANRE’s evolution
In 1999-2006, the regulatory activity in the field of electricity and gas unfolded separately, within the two existing regulatory authorities,
namely the Romanian Energy Regulatory Authority (ANRE) and, respectively, the Romanian Gas Regulatory Authority (ANRGN).
In April 2007, ANRE took over the tasks, rights and obligations, budget, financing and staff of ANRGN and the activity was reorganised
based on Government Decision (GD) no. 410/04.05.2007
In November 2009, ANRE took over the tasks, rights and obligations, budget, financing and staff of ARCE – Romanian Agency for Energy
Conservation and the activity was reorganised based on Government Decision (GD) no. 1428/18.11.2009
ANRE
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ANRE – organisation and functioning
ANRE is organised as an autonomous administrative authority with legal
personality and own patrimony. Annual reports regarding fulfilment of its
mandatory attributes and competencies are sent to the Parliament,
Government and the President of Romania, the Agency for Cooperation of
Energy Regulators - ACER and the European Commission.
Financing current and capital expenditures is made entirely of ANRE own
revenues (authorisations and licenses fee, yearly contributions of the
regulated operators, other funds)
ANRE is managed by a president and two vice-presidents and for the
approval of the regulations is constituted a regulatory committee composed of
president, vice-presidents and 4 regulators, appointed by the Romanian
Parliament. Their mandates may be renewed once.
ANRE have the power to decide independently the measures for effective
competition, necessary for the operation of the electricity and gas markets, and
enforce appropriate sanctions for the sector undertakings which do not observe
their legal requirements.
Market Structure
ANRE
Implementation of the provisions of the Law 123/2012
Challenges
- TSO certification
- Implementation of the art. 23 - (1) On the competitive market, commercial
transactions of electricity are performed in a transparent, public, centralized and
non-discriminatory manner
- The development of a gas market model that ensure an organized and
transparent framework market where the participants exercise their rights to buy and
sell natural gas in two segments of the wholesale market:
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Primary market (including bilateral short and long measures for the national production and import).
Secondary markets (bilateral contracts for reselling the natural gas, transactions on a organized market
and transactions on a regulated market on a short term which envisage mainly the commercial
imbalances)
- Phasing out regulated prices
ANRE
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TSO certification
Both electricity and natural gas transmission systems are public property, so
the Independent system operator model was chosen for both sectors
The model allows the certification of the transmission system operator in
compliance with European provisions, and at the same time, maintaining the
existing ownership and providing also an effective unbundling of electricity and
natural gas transmission from generation and supply
The Line Ministry proposes the legal person performing the TSO function, and
the final certification decision belongs to ANRE, upon approval of the European
Commission
For the complete transposition of TSO independence provisions two distinct
public bodies (i.e. ministries) are necessary, exerting distinct control on the
TSO, on the one hand, and on generators and suppliers, on the other.
ANRE
Transactions on the electricity market (1)
Implementation of the provisions of art. 23
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The provisions intend to increase the transparency of the contracts concluded on the
competitive electricity market
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But, after the publication of the law, several business organisations have asked
clarifications regarding its application
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There is a high degree of concern regarding the impossibility of concluding bilateral
negotiated contracts for sale of electricity. Usually, bilateral contracts have been used
to support the investments in new resources, including renewable ones, for importexport contracts
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Concerns regarding the provisions of this article have also small power producers or
self-producers, who seen in trading energy on a centralised platform only one additional
bureaucratic barriers in selling electricity
Transactions on the electricity market (2)
ANRE
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In order to manage the risk that comes from uncertainty, ANRE
belives that is important for buyers and sellers to be able to
choose a portfolio of short-term, medium-term and long-term
power supplies in organised markets
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Possible solutions:
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To develop the existing OPCOM platform in order to cover long and very shortterm contracting
Review of the regulatory framework regarding issuing licenses
ANRE
Gas market
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Establishing a gas market operator
Issuing the principles of operation for gas wholesale market:
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Market trading rules
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Capacity allocation rules for interconnectors,
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Balancing and administration of imbalances,
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Reporting and publishing the market information
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Revisions of the tariffs methodologies:
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Methodology to recognition gas import price for regulated market based on the European
prices
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Methodology to set up transmission tariffs including entry-exit pricing system,
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Methodology to set up the storage tariffs,
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Methodology to set up the distribution tariffs,
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Methodology to set up regulated price for final customers
ANRE
Pricing Issues
• Implementation of the provisions of the roadmaps for phasing
out the electricity and gas regulated prices:
Electricity:
non-households 01.09.2012-31.12.2013
households 01.07.2013 – 31.12.2017
Gas:
non-households 01.12.2012-31.12.2014
households 01.07.2013 – 31.12.2018
• More information on electricity bills (green certificates,
quantities and prices from the competitive market, cogeneration)
ANRE
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Other current regulatory topics
REMIT obligations
Promotion of smart metering according with the results of the
national cost-benefit analysis – the main conclusions of the CBA
indicates a positive result for smart metering implementation in Romania
only for electricity
Promotion of electricity from renewable energy sources, promotion
of high efficiency cogeneration
Informed electricity and gas customers
Insuring a regional dimension of the electricity and gas markets in
accordance with the European electricity and gas target models,
infrastructure development
Contact Information
ANRE
ROMANIAN ENERGY REGULATORY AUTHORITY - ANRE
Phone: (+ 40 21) 311 22 44
Fax : (+ 40 21) 312 43 65
Email: [email protected]; [email protected]
www.anre.ro