Romanian Competition Council: Area-based tariffs for energy transport, useless

04 March 2015

The Romanian Competition Council believes that the current pricing mechanism for electricity transport and distribution, which is divided into geographical areas, affects competition, without bringing benefits to consumers or without being justified by the safety of the national energy system.

Romania has seven geographical areas with different tariffs for grid electricity input. It also has eight areas where tariffs for network energy recovery vary.

Such a mechanism could be justified, the Competition Council writes, if carrier Transelectrica wanted to encourage investments in one of the areas, reports local Mediafax.

However, the analysis shows that the company hasn’t carried out investments in new units.

The Competition Council recommends an analysis of changing the pricing mechanism for electricity transport.

editor@romania-insider.com

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Romanian Competition Council: Area-based tariffs for energy transport, useless

04 March 2015

The Romanian Competition Council believes that the current pricing mechanism for electricity transport and distribution, which is divided into geographical areas, affects competition, without bringing benefits to consumers or without being justified by the safety of the national energy system.

Romania has seven geographical areas with different tariffs for grid electricity input. It also has eight areas where tariffs for network energy recovery vary.

Such a mechanism could be justified, the Competition Council writes, if carrier Transelectrica wanted to encourage investments in one of the areas, reports local Mediafax.

However, the analysis shows that the company hasn’t carried out investments in new units.

The Competition Council recommends an analysis of changing the pricing mechanism for electricity transport.

editor@romania-insider.com

Normal
 

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