Acasă » Electricity » Suppliers complain about legislative uncertainty, lack of liquidity and Guarantees of Origin

Suppliers complain about legislative uncertainty, lack of liquidity and Guarantees of Origin

5 December 2023
Electricity
energynomics

The suppliers ask the responsible authorities to establish a real long-term dialogue for the development of new legislation to ensure predictable market reference points, necessary to ensure market liquidity, the financing of future projects and the sale of sustainable energy, support members of the Romanian Energy Suppliers Association (AFEER).

One of the clear characteristics of the market is that the MACEE mechanism, for the mandatory sale of energy, will remain in force until the previously specified date, namely the end of the first quarter of 2025, even if the return to the free market, carried out in stages, would bring many benefits to all players. Amid the difficult conditions of recent years, several large trading firms have left the market.

“We are worried in the long term, many large, multinational trading firms have left Romania, the liquidity of the market has decreased… We are worried about the quantities delivered when MACEE will no longer exist,” said one of the AFEER members.

At the same time, due to unpredictability, “no one can provide clear information on the market for the next 12 months.”

It is not yet clear whether suppliers are exempt from the 1% surcharge on turnover, as no company has a single CAEN code, and suppliers should theoretically be exempt, but have also other CAEN codes in their statute.

“This aspect must be provided for by law, because no one is ‘exclusively a supplier'”, they say.

The surcharge will instead make bank loans more expensive – probably by 2 percentage points of interest.

In the coalition, it was discussed that the banks should offer suppliers, who have already guaranteed the capping-compensation scheme, factoring lines with the state guarantee, with settlement periods on average of 100-150 days. The banks have not yet agreed with the state to sign guarantees, however, and with the surcharge that will take place next month, interest rates will increase – probably – by 2% for corporate loans.

“All these costs will end up in the consumers’ pockets”, say the suppliers.

The adoption of the Guarantees of Origin system – absolutely necessary for the market

At the same time, there is a lack of Guarantees of Origin (GoO), an absolutely necessary tool for the “greening” of new projects and their financing, which should have been adopted already this summer.

“Many consumers have ESG (environmental, sustainability and governance) policies and need GoO, both for financing and to be competitive on the foreign market. They are totally blocked here.”

According to AFEER, only Romania and Poland are not yet part of the GoO’s regulatory body, the Association of Issuing Bodies (AIB), but Poland has already started the accession process.

“Producers’ and consumers’ associations want it, only the state doesn’t,” said a supplier.

“With the help of GoO, it is easier to get a ‘green’ bank loan…And the consumer benefits from the fulfillment of ESG targets, green rating, etc.”

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