Romania’s state-controlled hydropower company Hidroelectrica came up with a new solution to the Government’s dilema about how to liberalise the residential electricity market after the emergency ordinance (OUG) 114/2018 imposed regulated prices and quantities delivered by the company and Nuclearelecytrica - another major state-controlled power generator. Romania must submit to the European Commisison a strategy in this regard by the end of the year.

Specifically, Hidroelectrica said it prefers becoming the direct supplier of electricity to part of the households (while the distribution would be still secured by regional distribution firms), instead of being compelled to deliver private electricity supply firms part of its output at the regulated price, local Economica.net reported. It is assumed that Nuclearelectrica would do the same with the other part of the residential end users.

At this moment, the Government inherited a bill drafted by the Social Democrat predecessors, by which Hidroelectrica and Nuclearelectrica are compelled to cover 100% of the residential electricity consumption at regulated price, with the share gradually reduced by the spring of 2021. Hidroelectrica thus agrees with the solution, but wants to become the direct supplier -- instead of the supplying arm of the regional distribution company. The advantage would be that at the end of the process, Hidroelectrica ends with a portfolio of residential consumers - who are rather slow in changing their supplier.

The market regulator ANRE is urging for the final decision in order to draft relevant procedures. 

editor@romania-insider.com

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