Romanian power grid operator’s profit drops by 90%

Romania’s state-controlled power grid operator Transelectrica recorded a 90% drop in its net profit in 2017, to RON 26.4 million (EUR 5.8 million). In 2016, the company had a net profit of close to EUR 60 million. The profit drop was determined both by a decrease in profit from profit allowed activities due to the reduction of the transport tariff by 10% compared to the same period last year and especially by the recording of a significant loss corresponding to the activities carried out based on a zero-profit regulatory model, according to the company’s preliminary report. The company transported 2% more electricity in 2017 but the average transmission fee was 10% lower, resulting in an 8% decline in transmission revenues, to RON 1.05 billion (EUR 231 million). The operational profit (EBIT) from transmission activities thus went down by 45% to RON 146 million (EUR 32 million). On the technological services segment, a zero-profit regulated activity, the company recorded losses of over EUR 17 million, compared to a profit of over EUR 19 million in 2016. Romania’s electricity consumption went up by 2.3% last year, to 56.9 TWh, while the local production was 1.4% lower, at 59.8 TWh. Electricity exports thus declined by 16%, to 6.1 TWh, according to Transelectrica’s data. editor@romania-insider.com