Romanian power suppliers push for return of bilateral trading

The Romanian electricity suppliers association AFEER has called for the lifting of a two-year ban on trading wholesale power outside the market operator OPCOM, quoting a lasting impact on investment.

In a controversial move in 2012, the Romanian government approved a law, later adopted by energy regulator ANRE, which restricted electricity trading to OPCOM’s centralised platforms ( see EDEM 18 September 2012 ). The measure made all bilateral contracts illegal.

The decision came as The European Commission investigated Hidroelectrica for alleged price fixing of bilateral long-term contracts ( see EDEM 18 June 2012 ).

According to a statement on Friday, the head of AFEER, Ion Lungu, said that the law had halted investment in the sector as most banks required a prearranged contract for supplying electricity before approving funding. “I can’t imagine how a bank would give out funding without the support of a electricity supply contract,” he said.

AFEER noted: “There was a lack of vision on the development of the national energy system, which we hope will be transposed in the medium- and long-term strategy of the governmental department of energy.”

The statement noted that representatives from the energy regulator had also found a similar need to reinstate bilateral contracts. “If investment in the energy production can be recovered through bilateral electricity contracts, there is a need to bring back a discussion [on the topic] so that we ‘unfreeze’ investment,” said ANRE’s vice president, Emil Calota, in a speech quoted by AFEER.

Meanwhile Ernest & Young partner, Valeriu Binig also voiced concerns on the matter. “After two years of [limbo], we ask for our right to free trading like all other European countries.”

In an exclusive interview with ICIS, earlier in June, ANRE’s board member Zoltan Nagy-Bege, said that the government was unlikely to lift the ban as the market was functioning fine ( see EDEM 23 June 2014 ). “The law made it very difficult for green energy producers to secure bank loans, but the renewable boom, I believe, has already passed. If they found solutions until now, I think it is not needed anymore,” he said.

This is not the first time AFEER has stepped in, with a previous request earlier in February ( see EDEM 3 February 2014 ).

The government was unavailable for comment. Sophie Udubasceanu