The measure will apply to all power distributors for five years starting 2013, ANRE head Niculae Havrilet told Mediafax Wednesday.

The rate of return will apply to the value of investments energy distributors will make starting now and to the regulatory asset base for power distribution.

“Companies investing in smart metering will have the rate of return increased by 0.5 percentage points,” he added.

Romania must implement a smart energy metering system for electricity distribution and supply by 2020.

According to ANRE, the country needs to upgrade power distribution networks to increase the quality of electricity distribution.

Between 2004 and 2008, the Romanian government privatized five units of power distributor Electrica SA. The companies that bought the five energy distribution units are Enel (Italy), CEZ (the Czech Republic) and E.ON (Germany).

Minister-delegate for Energy Constantin Nita said Tuesday the quality of power distribution services in Romania has not improved after the privatization of the five units.

He said that foreign utility giants Enel, CEZ and E.ON export the profits obtained locally and import used equipment, and deemed the fact unacceptable.