Two companies of the group RCS & RDS currently have ongoing projects for the development of some electricity distribution networks, according to a press release from the group. In September 2015 the necessary licenses were requested for two pilot projects located in Oradea, respectively in the vicinity of Timisoara city.
The telecommunications group says, however, the request was rejected because ANRE conditions the issuance of such licenses, by first obtaining the agreement with the current distributors in those areas. At the conclusion of the concession contracts, to this day there wasn’t a legal monopoly over the electricity distribution service, says RCS & RDS.
Moreover, the group says, “in the years 2014 and 2015 ANRE extended the exclusivity beyond the network owned by the concessionaire, to an entire territory. The Authority has thus excluded competition in this market, making it difficult for other businesses to provide electricity distribution services through self-funded networks. “
RCS & RDS supports that through its networks it would provide a distribution price of 120 lei / MWh compared to 159.49 lei tariffs up to 188.2 lei / MWh charged by distributors dealers.
Last week, Valentin Popoviciu, Vice President of the telecom company, said they will take all the necessary steps to obtain a license.
“We requested ANRE for licenses in two pilot areas. In the interpretation of other operators and of the ANRE, the law does not allow, but in our interpretation of the law it allows (…) We will make all the necessary steps so that we will obtain the legal opportunity to provide distribution services electricity. We believe that the law and the Constitution allow us to develop and operate legally in power distribution networks,” said Popoviciu, quoted by economica.net.
Regarding the limitations imposed by the legislation, Valentin Popoviciu explained: “The Energy Law allows you to create distribution networks. (Law – nr) speaks of “natural monopoly”. The authority (ANRE – no) comes and says, we speak of a monopoly established by law “. No monopoly is established by law. It is a natural monopoly,” natural “means a condition of the market.”
ANRE believes that the law does not permit the development of a new electricity distribution network.
“In Romania, there cannot be only one concessionaire of the power distribution service in the regions, otherwise a regulated market could not exist and major imbalances can occur in the balancing market. The establishment of a regional network of distribution to serve the population and businesses needs a permit for establishment from the Ministry of Energy. And, something like this cannot be given. Romania is still a regulated market and, in those circumstances, it has clear rules. The Energy Law provides the existance of a single distributor in the region “ explained Niculae Havrilet, President of ANRE.