The regulator’s order has established this year tariffs lower even by over 14% for Electrica’s distribution operations.
Electrica, Electrica Muntenia Nord, Transilvania Nord and Transilvania Sud took legal action to suspend and annul ANRE’s Order no. 165 of December 2015 which amends the methodology for the setting of electricity distribution tariffs, according to a document sent to the Bucharest Stock Exchange.
ANRE norms previously stipulated that distribution tariffs may vary annually, in real terms, by maximum 10% for specific distribution tariffs and by 7% for the weighted average tariff.
ANRE’s Order no. 165 scrapped the lower limit for decreases in distribution tariffs, but it kept that for increases in distribution tariffs.
The lowering of distribution tariffs triggered a slight decrease in prices for end-users, starting January 1, 2016.
Distribution tariffs are a source of income for electricity distribution operators which complain that eliminating the cap on tariff decreases triggers a lack of predictability that seriously affects their business plans, including their investment plans.