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Romanian TSO sheds light on electricity export cost rise

08 Jan 2013 18:50:13 | edem

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Romania's zonal tariffs have increased by 12% on average year on year. The rise of this component translates into total export costs to neighbouring countries rising by more than 9%, according to clarification from Transelectrica and trading sources active in the region.

There had been some confusion among traders on the new levels of tariffs established by energy regulator ANRE (see EDEM 4 January 2013). The transmission system operator (TSO) insists that it does not charge electricity "export and import tariffs", and it only works with ANRE tariffs.

"When exporting electricity from Romania, traders need to consider a tariff for extraction of electric energy from the Romanian network [TL], which varies according to the location of the producer", a Transelectrica representative said.

Tariffs explained

If a trader wants to export electricity to Hungary and chooses to do it through the Arad-Nadab interconnector in the Banat zone, then the new tariff is New Lei 11.87/MWh (€2.68/MWh). The full list of extraction tariffs can be found on the TSO's website.

In addition, traders need to pay a tariff for system services (SS), which has been increased to New Lei 10.91/MWh from New Lei 10.21/MWh, and a tariff for services provided by the commercial operator OPCOM, which is New Lei 0.37/MWh, up from New Lei 0.30/MWh last year.

A so called cogeneration tariff is added to the mix. A Transelectrica representative confirmed that this was increased to New Lei 23.10/MWh from 1 January, compared with New Lei 21.22/MWh last year.

All that puts the final tariff for exporting energy from Romania to Hungary through the Arad-Nadab interconnector at New Lei 46.25/MWh (€10.46/MWh), an increase of 9.5% year on year (see table). Traders had previously calculated the level to export from Romania to Hungary between New Lei 41.66/MWh and New Lei 48.19/MWh.

Exports unprofitable

In addition to the New Lei 46.25/MWh final tariff cost, cross-border capacity prices, which are determined through auctions, are also applied.

There is still confusion regarding how exports and imports are handled in the light of Romania's energy law banning electricity trading in Romania on any platform other than local exchange OPCOM (see EDEM 18 September 2012). But traders agree that with the new tariffs, exporting from Romania will no longer be profitable.

Based on indicative prices for Romania, ICIS calculated the Hungarian premium to Romania for February '13 Baseload at €1.83/MWh on Monday, making exports unprofitable during February.

However, long-term contract pricing suggests that Romanian exports to Hungary during 2013 could have been profitable based on the tariff alone - the Hungarian Calendar Year 2013's premium to Romania exceeded the €10.45/MWh tariff to Hungary for 108 of the 252 trading sessions last year, according to ICIS data. IP

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