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Niculescu: We will start discussions with the distribution operators regarding the 5th regulatory period

28 February 2024
Electricity
energynomics

The National Regulatory Authority in the field of Energy will start, from next week, discussions with energy distribution operators regarding the 5th regulatory period, ANRE president George Niculescu said on Tuesday.

“We will enter into a calendar of discussions with the distribution operators regarding the 5th regulatory period. I think even from next week. It is not easy to maintain a balance between the investment needs and the development needs of the distribution networks and the consumer’s tolerance limit,” said Niculescu, according to Agerpres.

He emphasized that there is a need for investments in the distribution networks, which must be strengthened and developed, but it must also be seen how these networks can be operated efficiently, so that the distribution tariff is related to the possibilities of consumers in Romania.

“We have to look at the efficiency side from my point of view of operating these distribution networks, how can we efficiently operate these networks, so that maybe we can succeed in some form, and that’s what we’re going to try to clarify with the distribution operators in the next period – how we manage to operate more efficiently and reduce operating costs in such a way that the distribution tariff is at a bearable level, directly related to the power of consumers in Romania,” explained Niculescu.

On the other hand, regarding the return to the free energy and gas market, the president of ANRE reiterated that a gradual exit from the price ceiling scheme is needed, in order not to cause shocks in consumer bills.

“I participated in several discussions with the Ministry of Energy on this subject. It is well-known that I publicly stated on numerous occasions that there is a need for a gradual exit from this support scheme and I take advantage of this opportunity to reinforce this message. There is a need a gradual phase-out, a gradual exit from this support scheme, without producing shocks in the bills of energy consumers. I want this process to be smooth and without any kind of problems and I am willing to make available to the decision-making authorities all the expertise of colleagues in the Regulatory Authority to find the best solution. How do we see this? Exactly as we stated: a gradual exit from the support scheme, reintroducing liquidity to the energy market by releasing some volumes of energy to be traded otherwise than the mechanism of centralized purchase of electricity, also taking into account the need for stability and predictability of prices for domestic or non-domestic consumers,” pointed out George Niculescu.

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