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ANRE withdrew ARELCO’s licenses for ”inadeqauate behaviour”

17 February 2017
Electricity
Bogdan Tudorache

The Regulatory Committee of ANRE withdrew two licenses for the electricity supply activity, for the companies ARELCO ENERGY SRL and ARELCO POWER SRL, controlled by the businessman Cornelius Pop.

“Through the letter registered at ANRE under no. 5522/27.01.2017, the ARELCO POWER SRL company administrator has advised that the company is unable to perform its objective of delivering electricity to the final consumers, given the conditions and developments on the electricity market, and requested that ANRE to ensure the uptake of the consumption places of its final consumers by the suppliers of last resort, by applying the provisions of Regulation of takeover by the suppliers of last resort of the consumption spots of the final consumers who have not secured their supply of electricity from any other source approved by the ANRE Order no. 17/2015”, it said in a statement of ANRE.

ARELCO POWER SRL company had the license no. 1014 for the supply of electricity provided through the ANRE Decision no. 1527/10.06.2011, as amended, which was being valid until 16.06.2021. At the same time, the company ARELCO ENERGY was similarly withdrawn of the license that would have expired in 2020.

ARELCO Group also holds licenses for the supply of natural gas, according to the company website.

“Considering the letters received by ANRE from the companies Arelco Power SRL and Arelco Energy SRL on January 27th and 30th 2017, the general departments specialized in ANRE found that there were no applicable legal/contractual conditions for the termination of the supply contracts concluded by these companies with the final consumers, in order to make it possible that those final consumers to be taken over by suppliers of last resort”, said ANRE.

Thus, given the inability of those companies to continue the supply of electricity to their final consumers, as declared by them in letters to the ANRE, the breach of clauses in contracts for the supply of electricity by the companies with their final consumers, situation that, under the conditions of application referred to in art. 4 para. (1) of Regulation of takeover by the suppliers of last resort of the consumption spots of the final consumers who have not secured their supply of electricity from any other source, the provisions of that legislation are applicable in case of suspension, expiry or revocation of the license, the ANRE regulatory committee approved the withdrawal of the licenses of the two companies for the supply of electricity.

“By this measure, ANRE affirms its determination to strengthen the monitoring of the participants in the energy market, with zero tolerance for behaviors that could increase costs to consumers or even endangering the supply of electricity to them”, stated the release.

The President of the National Energy Regulatory Authority (ANRE), Niculae Havrileţ, said on February 8th that the energy supply contracts should be provided with clear and tougher sanctions for the cases of unilateral denounciation of contracts.

“We believe that the conditions of the supply contracts should be tightened. These contracts are an act between two parties. ANRE cannot interfere in those contracts, concluded on the free market and established between the two parties, but may advise the consumers. It would have been necessary a more clearer penalty for unilateral termination of contracts”, said the ANRE president, quoted by Agerpres.

“We started an investigation, with the suspicion that the unilateral termination was done without reason”, said the official from ANRE. Asked if a change in regulations is required, Havrileţ replied that this will be determined by an exhaustive analysis that ANRE and OPCOM jointly run with the Competition Council.

“We believe that, in general, the regulatory framework has not been breached, but there can be other elements that will indicate that a change in the regulatory framework would be appropriate”, said the President ANRE.

Autor: Bogdan Tudorache

Active in the economic and business press for the past 26 years, Bogdan graduated Law and then attended intensive courses in Economics and Business English. He went up to the position of editor-in-chief since 2006 and has provided management and editorial policy for numerous economic publications dedicated especially to the community of foreign investors in Romania. From 2003 to 2013 he was active mainly in the financial-banking sector. He started freelancing for Energynomics in 2013, notable for his advanced knowledge of markets, business communities and a mature editorial style, both in Romanian and English.

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