Energy Market Actors
Electricity market
Structure of power sector
In the year 2000, the former national electricity company CONEL was dissolved. The following commercial companies were established.
- Transelectrica S.A.:
Transelectrica is the Romanian Transmission and System Operator (TSO) which plays a key role in the Romanian electricity market. It manages and operates the electricity transmission system and provides electricity exchanges among Central and South - Eastern countries, as a member of UCTE (Union for Coordination of Transmission of Electricity) and ETSO (Association of European Transmission and System Operators).
Transelectrica is responsible for electricity transmission, system and market operation, grid and market infrastructure development ensuring the security of the Romanian power system. It also serves as the main link between electricity supply and demand, matching all the times power generation with demand. - Termoelectrica S.A.:
Termoelectrica S.A., Commercial Company for Electricity and Heat Generation for the production of electrical and thermal energy - electricity generation from thermal power plants, district heating, and related fuel supplies.The reorganisation process at SC Termoelectrica SA continued in a dynamic rhythm, being sustained also by the government decision 1524/2002 regarding the creation of competitiveness conditions in the sector of energy production. Thus, 18 thermic power stations have been transferred from Termoelectrica patrimony in the patrimony of the local public administration, as well as the transfer of the hydro electrical power stations from the Termoelectrica, Nuclearelectrica and Electrica patrimony in the Hidroelectrica patrimony. - Hidroelectrica S.A.:
Commercial Company for Electricity Generation and for the production and delivery of hydroelectric power. - Electrica S.A.:
Commercial Company for Electricity Distribution and Supply.
2002 SC Electrica S.A. has been reorganised, as it became a group of companies which includes 8 branches for the supply and for the distribution of electric energy and 8 branches for maintenance and for energetic services.
5 out of 8 distributors have been privatised by 2007. Italian energy-giant ENEL purchased Electrica Dobrugea, Electrica Banat and Electrica Muntenia Sud. 29,7 % of the Romanian electricity market are now in Italian hands. Electrica Moldova, which is covering 15 % of the electricity market is owned by E.On, situated in Germany. CEZ, a Czech energy company took over Electrica Oltenia, i. e. 16 % of the market share.
Electrica Transilvania Nord, Electrica Transilvania Sud and Electrica Muntenia Nord are still state-owned.
- Nuclearelectrica S.A. (SNN SA):
The nuclear power production is in the hands of a state owned company. SNN SA carries out as its main mission the production of nuclear power, of nuclear fuel and the project development at the Cernavoda Nuclear Power Plant site. SNN SA has three branches:- "CNE PROD", operating the Cernavoda NPP Unit 1 and the auxiliary services;
- "CNE INVEST", including Units 2 to 5, actually in charge with the Unit 2 completion and U3-U5 preservation;
- "FCN - Pitesti", the Nuclear Fuel Plant.
Status of deregulation
The mission of The National Electricity and Heat Regulatory - ANRE, responsible for issuing licences for the unbundled Romanian market, is outlined in "Regulatory White paper for Sustaining the Liberalisation & Privatisation Processes in the Electricity and Heat Sector". Price liberalization was started in 1997. As far as the Implementation of the Electricity Directive is concerned, an Emergency Ordinance (1998) lays out the measures to be introduced for liberalization of the Romanian electricity market.
Opening of the market
In the electricity sector, following a Government Decision in January 2002, market openness was increased to 33%, with licensed suppliers and eligible customers defined by the regulatory authority. In practice, the contracts signed between licensed suppliers and eligible customers amount to around 8% of the market.
Requirements:
- Consumption threshold: 40 GWh
- Creditworthiness
- Absence of debts to former national company CONEL.
Access to the network
Regulated Third Party Access will be used. The likely model for tariff regulation is a combined price cap and rate-of-return system. ANRE has chosen a nodal transmission tariff system.
Regulator
The National Electricity and Heat Regulatory - ANRE
Competition in generation
ANRE issues authorizations for new generation capacity and for the rehabilitation of existing plants for companies with headquarters or secondary head offices in Romania. Licences are awarded subject to the accomplishment of a feasibility study, an environmental impact assessment and a financial assessment.
Tariff setting
The National Electricity and Heat Regulatory - ANRE is responsible for regulating prices and tariffs in monopolistic activities (transmission and distribution). Until the market operator is established, ANRE is also responsible for the generation sector.
Oil and gas market
Oil: Structure and Status of Deregulation
PETROM SA, the former National Oil Company, is the biggest company is the largest oil and gas company. PETROM is an integrated enterprise, comprising two refineries and two petrochemical units. 51% of PETROM are owned by OMV, an Austrian oil company.
Rompetrol is a private company specialized in external trade.
Conpet: the oil pipeline company
Petrotrans: distributes and markets oil and oil products
The petroleum products market is open to competition; seven out of the eight operating refineries were privatized. Distribution is also highly competitive, containing a diversity of large foreign and Romanian private companies.
Gas: Structure and Status of Deregulation
ROMGAZ. S.A S.N.G.N. has as main activities exploration, production and underground storage. Together with SNP-Petrom the company covers some 60 % of the production of natural gas. After the restructuring Romgaz is open for foreign investment. Transgaz SN is in charge of transport of locally produced gas. Southern Distrigaz was taken over by Gaz de France. The French Gaz company is holding a 51 % stake. In 2006 E.ON purchased Northern Distrigaz (today E.ON Gas Romania).
As with the electricity sector, gas prices have been adjusted to reflect production costs, they are now indexed with the US dollar. From January 1st 2007, together with the official EU integration of Romania, the domestic natural gas market was liberalised for all non-household consumers and from July 1st 2007 for all customers.
Coal and lignit market
The National Lignite Company Oltenia (CNLO) has a production capacity of about 31 Million t per year, while Romania's domestic consumption is estimated at 23-27 Million t per year.
RAL, RACP and RAH are coal producing companies; RAL and RACP controlling most lignite mines, RAH being responsible for hard coal mines and some lignite mines.
