Smart meters, which can provide information about electricity consumption and price in real times, price deregulation for non-household consumers as of this year and certain criteria the people who run the ANRE are required to meet are but some of the provisions of the document endorsed by the govenrment.
The start of the deregulation of the electricity market, where almost half of the consumers are buying power at a regulated price, is one of the most important changes and a topic foreign companies have been talking about in the last few years.
Non-household consumers will see regulated tariffs drop in six stages, while the process for the household consumers will unfold over ten steps. Power suppliers will buy a gradually higher percentage of electricity from the competitive market. According to ZF’s calculations, the household consumers’ bills could increase by about 1% in the first deregulation stage in July 2013, while non-household consumers’ bills could go up by about 2% as of this fall.
However, the power price might double by 2017 because it will include the impact of the support schemes for green energy and cost of buying the CO2 certificates. The government, as recommended by the energy market watchdog, can limit excessive price hikes or freeze them for up to six months, which can be extended for successive periods of up to three months each. The step may only be taken in case of severe imbalances between demand and supply and obvious problems of the electricity market, the bill reads.
The ANRE will also evaluate the impact of implementing smart metering systems. These smart meters should allow power consumers to know how much power they are using and its price at any moment.
“In case the evaluation finds that implementing smart metering systems is advantageous to the energy market operation, ANRE approves an implementation schedule spread over up to ten years of the smart metering systems, so that at least 80% of the customers should have smart metering systems installed by 2020,” the document reads.
The new bill also introduces criteria to be considered when appointing people to run the ANRE, and to select those in charge of approving the electricity and natural gas regulations. The chairman and vice-chairman of the energy market watchdog are appointed by the President of Romania as nominated by the govenrment, for six-year terms. The regulatory board of the institution, comprising the chairman, vice-chairman and five regulatory board members will stay in office five to seven years. Relevant experience in the electrical power, natural gas, business sector or in regulatory activity of at least five years will be mandatory.
According to the recitals of the energy bill, the transmission company, Transelectrica, in this case, should be transferred to another ministry, as the Economy Ministry is now the owner of both the energy producers and of several electricity suppliers.
(English version by Loredana Fratila-Cristescu)