GEO 5/2013 regarding the establishment of special measures for the taxation of activities of natural monopoly nature in the electricity and natural gas sector

ORDINANCE no. 5 dated January 22^nd 2013 regarding the establishment of special measures for the taxation of activities of natural monopoly nature in the electricity and natural gas sector

Taking into account that monopolies, in general, may lead to:

– the maximization of profits in absence of elasticity of demand, situation naturally existent in the case of electricity and natural gas sectors;

– the exercise of power in the market by increasing prices much above the marginal cost, without leading to a loss of customers, even in the case of existence of regulations issued by the regulatory authorities in the field,

as well as the necessity to provide the necessary funds for the investment projects co-financed from European funds,

pursuant to art. 108 of The Constitution of Romania, republished, and of art. 1 point I.3 of Law no. 1/2013 enabling the Government to issue ordinances,

The Government of Romania adopts this ordinance.

Art. 1

(1)As of February 1^st 2013 it is established a tax on natural monopoly in the electricity and natural gas sector.

(2)The tax on natural monopoly in the electricity and natural gas sector is a revenue to the state budget.

Art. 2

(1)The tax on natural monopoly is applicable to electricity and natural gas transmission operators licensed by the National Energy Regulatory Authority.

(2)The tax on natural monopoly also applies to economic operators distributing electricity and natural gas, licensed by the National Energy Regulatory Authority, owners of concession agreements concluded with the Ministry of Economy and Trade or with local authorities, which apply the provisions of art. 48, paragraphs (1) and (2), and of art. 136, paragraphs (1), (2) and (3) of the Electricity and Natural Gas Law no. 123/2012.

(3)The amounts related to the tax on natural monopoly in the electricity and natural gas sector, calculated under the conditions of this ordinance, represents for the economic operators referred to in paragraphs (1) and (2) deductible expenses when setting the gross profit, under the provisions of Law no. 571/2003 on the Tax Code, with the subsequent amendments and additions.

Art. 3

The tax on natural monopoly in the electricity and natural gas sector shall apply for each MWh for which electricity and natural gas transmission and distribution services are invoiced. The values of the tax on natural monopoly applicable by operators referred to in art. 2 paragraphs (1) and (2) are provided in the annex that is an integral part of this ordinance.

Art. 4

(1)Economic operators referred to in art. 2 paragraphs (1) and 2) are obliged to submit a tax statement with the competent tax authority until the 25^th of the month following that in which the electricity and natural gas transmission and distribution services have been invoiced.

(2)Economic operators referred to in art. 2 paragraphs (1) and 2) shall calculate and pay on a monthly basis the tax on natural monopoly in the electricity and natural gas sector, until the 25^th of the month following that for which the tax is calculated.

(3)The tax referred to in art. 1 is managed by The National Agency for Fiscal Administration, according to Government Ordinance no. 92/2003 on the Tax procedure code, republished, with the subsequent amendments and additions.

Art. 5

The form and content of the statement on the tax on natural monopoly in the electricity and natural gas sector are established by order of the President of The National Agency for Fiscal Administration, within 30 days from the entry into force of this ordinance.

Art. 6

This ordinance shall apply until December 31^st 2014.

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ANNEX:

Level of the tax on natural monopoly in the electricity and natural gas sector

Published in the Official Gazette no. 52 of January 23^rd 2013

Download the Romanian version here.