REG - Soc EnergElectricaSA - Electricity Distribution Regulatory News

Societatea Energetica Electrica SAAnnouncement

18/07/2023 10:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230718:nRSR3791Ga&default-theme=true

RNS Number : 3791G  Societatea Energetica Electrica SA  18 July 2023

Announcement

2024 will be a transition year to the 5(th) Regulatory Period for the
distribution system operators, following ANRE Order 79/2023

Electrica announces the investors and shareholders that ANRE Order no. 79/2023
(Order) regarding the modification and completion of the Methodology for
establishing tariffs for the electricity distribution service, approved by
ANRE Order no. 169/2018, was published in the Romanian Official Gazette no.
618/6 July 2023.

The changes brought by this Order together with the application rules in its
annex refer mainly to the fact that the year 2024 will represent a transition
period from the fourth regulatory period (RP4) to the fifth regulatory period
(RP5).

Among the main changes to the methodology for setting the tariffs for the
electricity distribution service we mention the following:

•     The target income for the year 2024 is established according to
the provisions of Annex no. 1^1 to the Order;

•     The regulated income for the distribution service related to the
year 2024 is equal to the target income to which the annual corrections of the
year 2022 are added algebraically;

•     The inflation rate used to calculate the 2024 tariffs is equal to
the one forecast by the National Forecasting Commission for the year 2024;

•     The correction related to the inflation from the end of RP4  will
be calculated in 2024 and added to the target income of 2025;

•     The RAB value achieved on 31 December 2023 is calculated in 2024.
The distribution system operators must submit\ by 31 May 2024 to ANRE the net
accounting value of the fixed assets included in the RAB as at 31 December
2023;

•     Until 15 August 2023, the distribution operators will submit to
ANRE both the tariff requests as well as the investment programs related to
the year 2024;

•     There are some specific regulations for the Distribution System
Operators (DSOs) from the Electrica Group that merged in the fourth regulatory
period, among which the most important are:

o  The distribution tariffs remain distinct for each network area, but are
established based on a single regulated revenue at the DEER level, approved
for the year 2024;

o  for the year 2024, a single regulated NL* target is established for each
voltage level.

Regarding the methodological rules in Annex no. 1^1 to the Order, regarding
the establishment of the target income for the year 2024, we mention the
following aspects:

•     The regulated NL targets for the year 2024 are established using
the annual reduction percentage of the regulated NL targets considered for the
year 2023 compared to the year 2022, applied to the regulated targets related
to the year 2023;

•     The forecast reference price for the purchase of electricity for
covering the 2024 regulated NL (the same for all the distribution system
operators) is calculated as a weighted average considering 75% of the price
approved by MACEE** and 25% the weighted average price registered on DAM***
for May 2023.

•     For the year 2024, the RRR is maintained at the value approved by
ANRE Order no. 75/2020, respectively 6.39%;

* NL = Network Losses

** MACEE = Mechanism for the centralized purchase of electricity, approved by
the Government's Emergency Ordinance no. 153/2022 for the amendment and
completion of the Government Emergency Ordinance no. 27/2022 regarding the
measures applicable to final customers in the electricity and natural gas
market in the period 1 April 2022 - 31 March 2023, as well as for the
amendment and completion of some normative acts in the field of energy and the
amendment of the Government's Emergency Ordinance no. 119/2022 for the
amendment and completion of the Government Emergency Ordinance no. 27/2022
regarding the measures applicable to end customers in the electricity and
natural gas market in the period 1 April 2022 - 31 March 2023, as well as for
the modification and completion of some normative acts in the field of energy

*** DAM = Day Ahead Market (from OPCOM - Romanian Electricity and Gas Market
Operator)

**** RRR = Regulated Rate of Return

 

Contact details:

Electrica Investor Relations

E-mail: ir@electrica.ro (mailto:ir@electrica.ro)

Telefon: +40 731 796 111

 

 

Chief Distribution Officer

Livioara Sujdea

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCRPMLTMTBBMJJ