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AFEER calls for the clarification of exemption agreements

9 February 2016
Renewables
energynomics

The Association of Electricity Suppliers in Romania (AFEER) has asked the Ministry of Economy, Trade and Relations with the Business Communication, with “emergency”, the interpretation of the official Government Decision on when to implement the agreements for exemption from the payment of green certificates (CV) for large consumers of electricity, issued during 2015, according to a press release from the association.

“If, at the latest by mid-February, a clear statement does not come, when applying the agreements, the suppliers of the customers benefiting from the exemption, will be in some cases extremely unfavorable to them. Either they purchase a larger number of resumes, considering exempting the statement said ANRE (exemption valid from the date of issuance agreement), and the customer agreement exempting refuse payment surplus of resumes, considering valid communication Economy Ministry, who said in a briefing to the press, that this exemption shall be granted for the full year 2015; either they purchase resumes according to the information regarding the exempted customer, but is penalized by ANRE for non-mandatory quota for the acquisition of resumes,” said AFEER representatives.

“Therefore the Ministry of Economy position regarding the time of application for exemption agreements issued during 2015 is absolutely necessary, so suppliers can avoid regulatory risks. We need a clear interpretation of the law, to know exactly when and how to apply for exemption agreements,” said Ion Lungu, President of AFEER.

Given this situation, AFEER requests that, in future, a secondary regulation must be ensured, that will reflect as clearly as possible the primary legislation and that they will put into practice without leaving room for interpretation. “There are a number of things sufficiently clearly defined in the primary legislation and the market players expect the secondary regulations to be clear, not to leave room for interpretation,” said Ion Lungu.

However, AFEER is pointing out the legal risk, as a result of numerous amendments to the electricity sector. “There have been numerous changes in legislation, primary and secondary, one of the arguments often put forward by the authorities in the suppression of corruption. We will see other major legislative changes to the Energy Act. We believe that solutions can be found much better and fair, that does not distort the market,” says President AFEER.

AFEER submitted comments / proposals, reiterating the need to resume the direct bilateral contracts, in the context of changing primary legislation. Thus, AFEER requests to amend Articles 23 and 28 of the Energy Act, the purpose of reintroducing the possibility of concluding bilateral contracts directly negotiated wholesale electricity market.

However, the Association comes with comments on articles submitted for discussion to change based on the following principles: compliance with EU directives, so that Romania may not be in a position to be penalized as a result of nepreluării / takeover incorrect or incomplete, or to the fair rules applied to all participants in the electricity market in accordance with EU practices in the field.

Other proposals submitted by the Association to amend some articles concerning the rights and obligations of providers and final customers of electricity.

AFEER Energy Strategy supports the need for approval by law

AFEER welcomes the initiative of the Ministry of Energy to achieve the Energy Strategy of Romania applicable during the period 2016-2030 and 2050 by organizing a public debate, namely a broad consultation process in this regard.

“Our association has advocated continuously for an energy strategy, which we consider a necessity for the economic future of Romania. We hope and trust that the new strategy will reflect the main development of the energy sector for the period mentioned and also meet political consensus so that in the future, not to witness changes in strategy after the elections politically,” he Ion Lungu said, stressing the need to secure energy strategy through a law.

AFEER message to the authorities is “to define a realistic within the Energy Strategy”, to know what it wants from the energy system, which directions are clear, the Romanian state supports. In parallel to the legislative work on the stability and predictability so that investors have confidence in the legal system in the Romanian business environment.

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AFEER is an inter nonprofit, independent, nongovernmental organization, founded in late 2006 and currently includes a total of 47 members, licensed suppliers and active in the electricity market in Romania, suppliers whose client portfolio covers over 90% of the energy consumption of the country.

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