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Liberalization of the electricity market brings in more benefits for customers

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On October 26, at Energy Breakfast Club we aimed at outlining the new map of the electricity market in Romania as redesigned by the liberalization accelerated in recent years. We had together in this endeavor Florin Tobescu (ANRE), Cornelia Szabo (CEZ Vânzare) and Silvia Vlăsceanu (ACUE), and over 50 experts interested in trends and business development opportunities in the field. The map of electricity supply is in a process of remodeling and the most important changes will occur in the coming years.

The dialogue was launched by Florin Tobescu, head of International Relations Department in ANRE, who referred to the prospects of a even deeper integration of the national energy system into the European network, a process that comes with a “bureaucratic load higher than we would have liked”; in 2015, ANRE issued 985 pieces of legislation impacting the electricity market, and new provisions will be required after the completion of the expected winter package to be released in early December. “You’ll see elements impacting on all market participants, suppliers included,” said Florin Tobescu.

One more year until the full liberalization of the electricity market

Evolution of the number of customers on the competitive electricity market and the power supplied to them show an increased opennes. However, at households and small non-households consumers the switching rate is insignificant: 0.38% of the total number of consumption places in 2015. In the first half of this year, the number of suppliers increased from 100 to 105, Florin Tobescu said, while the energy generation decreased by 4%, and consumption increased slightly (1%).

The official from ANRE set the Authority’s priorities:

  • Completing the liberalization process
  • Increasing the number of suppliers and the number of bids
  • Real possibilities for changing the supplier
  • Finalising the price comparator
  • A careful and complete analysis of the contractual terms of the tenders (the conditions associated with them)
  • The evolution of the internal energy market

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“Access to information, both for consumers and for new companies is difficult, and therefore we need to act at company level, at the regulator level and at the legislative level to provide equal treatment to all participants in this complex market,” Florin Tobescu said. The Authority is currently working on a price comparator and, as much as such an initiative might also start from a private company, ANRE would still maintain the role to make sure such a comparator delivers truthful results, Forin Tobescu said..

Download Florin Tobescu’s presentation

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Cornelia Szabo, executive director of CEZ Vânzare, presented the storng lines of the positioning strategy the company has adopted as a supplier with 1.42 million customers in its portfolio.

Diversified portfolio and communication based on the customer’s needs

CEZ Vânzare is part of one of the most powerful energy groups in the region which also operates in Romania on the electricity distribution market and as a producer of electricity from renewable resources. The power supply business can thus count on the strength of CEZ Group and on the benefits from the similar experiences the Group had in countries that have already passed through the process of liberalization. Therefore, CEZ Vânzare focuses on communicating the benefits a strong supplier can guaranttee to the customer:

  • Quality services
  • Flexibility
  • Financial efficiency
  • A customer-oriented approach
  • A long-term partnership

It was just natural that the opening of the market started a silent war of prices, “but a contract is more than simply the price of electricity – which is, as we’ve all seen, less than 30% from the invoice value,” Cornelia Szabo said. The savings in the invoice can be achieved not necessarily by price, but by proper counseling, so that customers can choose a profile according to their consumption. “We offer negotiated payment terms depending on customer needs and a personalized and flexible manner of billing, payment and reporting, which allows for real cost control,” CEZ Vânzare representative said.

In addition to this, CEZ Vânzare diversified its product portfolio and offered loyalty programs to its customers. A segment that the company is focusing on is energy efficiency, an area where it proposed six types of services so that the client to get more “out of the same or fewer resources.” Local authorities, businesses or institutions may ask for free expert assistance from CEZ Vânzare in order to optimize their lighting systems, to conduct energy audits, energy management and micro-generation, all these resulting in improved energy efficiency.

Download Cornelia Szabo’s presentation

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Cornelia Szabo announced that CEZ Vânzare will open next week, in Timisoara, its first point of sale outside Oltenia area in which it operates as a default supplier. “It’s a innovative work point where we present not only electricity and gas products, but also energy efficiency and smart-home products”, the executive director of CEZ Vânzare said.

We are in the process of creating a new market model

Diversification is one of the trends of the moment, trends that contribute to redefining the electricity market model, Silvia Vlăsceanu said, executive director of ACUE. A second factor is the increased influence of electricity storage capacities, a trend supported by technological advances and where required regulatory decisions wil have a major impact on the market. “How should we treat storage – is it a producer or is it a consumer? Depending on this decision, the structuring of the market will be quite different. And more: must storage be a regulated market or should it be allowed to run free, based on competition alone? In any case, the activity of electricity distribution and transmission will be affected, storage will help the players to improve their own technological consumption etc,” Silvia Vlăsceanu explained.

The executive director of ACUE asked the energy community to discuss such issues so that experts can meet the decision makers in the new Parliament to be formed after the elections in December ready with all the arguments and explanations necessary for an intelligent transposition of the European legislation at the national level..

Over 50 representatives from ABE-EDY Impex SRL, Academia Română, Aderro GP Energy, AFEER, All Development Services, Ambasada Chinei, ASE Bucureşti, BCR, CE Oltenia, CEZ Vânzare, CMS Cameron, Consiliul Concurenței, e-mobility, Eco Solution, Edison Trading SpA , Electrica Furnizare, Elsaco Energy, Enel România, Energonuclear, EY, Federaţia Serviciilor de Securitate, Fine Consulting, Flash Group, Gaz Sud, Industrial Energy, DEFENCE UNLIMITED NATO CAGE LOAD1, Mitsubishi, Nei Holding, New Kopel, Politehnica Bucureşti, Ringhel, Roland Berger, Roycroft&Ross, Syscom Team, TEB Energy, Telekom, Tractebel Engineering, Transenergo, Uzinsider General Contractor SA, Voith Hydro, Zazi Business attended the presentations and participated in discussions.

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The event was organized by energynomics.ro and supported by our partners: CEZ Vânzare, Premier Palace SPA Hotel, Ridgid, SGS România.

Participation

This year, energynomics.ro aims to organize at least 2 more Energy Breakfast Club meetings. The schedule and the proposed themes are here.

Access to Energy Breakfast Club is open to all professionals in the Romanian energy industry and related sectors, based on the call of energynomics.ro. You are welcomed to write us at office [at] energynomics.ro and ask for an invitation!
Energy Breakfast Club is a meeting of 2 to 3 hours where energy specialists have the opportunity to keep themselves up to date with the latest information and the most influential views on one the hot topics of the moment.
As a host, energynomics.ro will provide – from 09.00 AM – the MC and the coffee, will propose the theme and will launch the invitations for the speakers. They are selected accordingly with their best knowledge of the topic and are responsible for organizing ideas and stimulating intellectual challenges. Presentations will not exceed 20 minutes and are intended to be starting points for a dynamic exchange of ideas and perspectives.
The club closes at 13.

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