Romania takes first steps towards energy market liberalisation

Romania

Early this January, the government has decided to void some measures adopted almost a year ago regarding the energy market (please see our Law-Now article on this topic). Government Emergency Ordinance 1/2020 (GEO) provides for amendments applicable to previous fiscal-budgetary measures targeting not only the energy sector, but also public administration, banking and other sectors.

Regarding the energy market, the aim of the GEO is to enact the first restoration measures for a free market, including:

  • Eliminating the 2% contribution from the annual turnover that energy companies were required to pay the National Energy Authority (ANRE).  The first consequences of this have already appeared with ANRE launching public debate drafts of energy distribution and transport tariffs of 1.7% to 1.9%. Before GEO 114/2018, this tax was 0.2%.

  • Limiting the applicability of the capped price of domestic gas to 68 lei (EUR 14) per MwH until 30 June 2020. GEO 114 provided that the 68 lei/MwH price be maintained until February 2022.

For more information on this eAlert, contact our local CMS experts Varinia Radu or Ramona Dulamea.