Romanian electricity distributors have posted a loss of 3 billion lei from the difference between the tariff recognized in the bills and the market price, which could affect their ability to access European funds for modernizing the networks, said Corina Popescu, CEO of Electrica.
“These networks, in order to operate, have their own technological consumption, which for most distributors is below 10%. Last year, the distribution tariff (recognized in invoices – n.r.) was set for an average price of 300 lei per MWh, and the market price was of 525 lei per MWh, so there is a difference of over 200 lei per MWh which was not covered by the distribution tariff. Multiplied by 6 TWh (consumption of the grids) and that is with how much the distribution operators financed the market last year,” said Popescu, according to Agerpres.
According to her, things are even worse this year, as the tariffs recognize an energy price of 450 lei per MWh, but in the market the prices are actually 700-800 and even 1,000 lei per MWh.
“It is about 3 billion lei for the entire distribution system, which has an impact on their cash flow and their ability to access European funds. And without the development of the transmission and distribution network we cannot come up with the development of production,” said Corina Popescu.
She pointed out that a sector-wide analysis was needed so that distribution operators would not be disadvantaged by the measures taken by the authorities.
“I hope that the authorities will not close the doors of the distribution operators so that they will not be able to access the funds. It would be a pity for the sector that has invested so far not to be able to access the European money. Things are a bit incomprehensible to me, given that European funds for modernizing the network do not impact distribution tariffs, but rather reduce the pressure on those tariffs. Solutions should be analyzed and identified, including those from the Competition Council, for these actions to be possible,” added the Electrica official.