ACUE requests the cancellation of ANRE Order establishing the regulated rate of return

Members of Federation of Associations of Energy Utility Companies (ACUE) requests the National Energy Regulatory Authority (ANRE) to immediately cancel Order no. 146/2014 establishing the regulated rate of return, because this change significantly affects investments in distribution networks, slows the increase in operational efficiency and quality of services offered to customers.

“According to the mentioned Order, the regulated rate of return (RRR) applied to the approval of tariffs for electricity distribution service provided by concessionaire distribution operators was adjusted to 7.7% as of 1 January 2015. This change will determine a reduction by 12% in the return on equity of targeted companies, which in order to maintain within the limits of balanced financial parameters will be forced to apply corrections of investment plans.

Given this situation, several companies members of ACUE Federation have already decided to go to court to cancel the Order and the related methodology. However, ACUE members reaffirm their availability to discuss with the regulatory authority to find solutions so that the activity of distribution operators and their investment capacity are not affected, for the benefit of all stakeholders: shareholders, regulators, distributors and, especially, customers”, reads a communique of the Federation of Associations of Energy Utility Companies.

Established in May 2012, the ACUE Federation counts about 25 members, including powerful energy groups, respectively E.ON Romania, GDF SUEZ Energy Romania, Distrigaz Sud Retele, ENEL Romania, CEZ Romania, Electrica SA, Electrica Furnizare, CONGAZ, WIEE, WIROM GAS, GAZ EST, with a total of over 20,000 employees and an annual turnover estimated at over 4 billion euros.