Transelectrica cuts regulated tariffs by 19%

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The state-controlled electricity transporter Transelectrica, announced that as of July 1st, the average tariff for the transport service drops by 9,8%, while the service tariff will be lower by 14,5%, and the technology services tariff will fall by 18,9%.

Thus, an order of the National Regulatory Authority for Energy (ANRE) regarding the approval of the new tariffs, which were calculated “in accordance with the applicable methodologies”, was published in the Official Gazette, according to a press release issued by the Bucharest Stock Exchange, according to News.ro

The new tariffs are valid between July 1st, 2017 and June 30th, 2018. The electricity transmission tariff drops by 9,8% at 16,86 lei/MWh.

The company explains the decrease by the negative corrections applied to offset the differences between the projected values used in the calculation of the tariff in the previous tariff years and the actual values recorded.

Thus, the final corrections were applied for the period July 1st, 2015 to June 30th, 2016 and the preliminary corrections for July 1st, 2016 – June 30th, 2017.

“The contribution of the ex-post corrections to the decrease of the new approved tariff compared to the tariff in force is -5.6%,” the company shows.

A second factor that generated this decrease is the amount of electricity charged at extraction from the networks, which was increased from 52 TWh to 54 TWh.

“The contribution of modifying the tariff quota to the decrease of the new approved tariff compared to the tariff in force is -3.7%”, Transelectrica officials also said.

The functional system tariff will also decrease by 14,5% at 1,11 lei/MWh. The decrease in this case was determined by: the negative ex-post correction included in the new tariff, which was higher than the negative correction applied in the tariff of the previous year, but also by the annual cost forecast recognized in the new approved tariff, which is lower than the annual cost forecast included in the current year’s tariff.

In addition, the amount of electricity chargeable for extraction from networks was increased from 52 TWh to 54 TWh. The technological system service tariff will decrease by 18,9% as a result of the negative ex-post correction included in the new approved tariff set according to the applicable methodology for partial compensation (in amount of 80%) of the estimated profit to accumulate up to June 30th, 2017.

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