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ANRE approves a 19% increase of regulated gas distribution tariffs

28 June 2024
Legal
Bogdan Tudorache

ANRE approved the regulated natural gas distribution tariffs applicable to natural gas consumers benefiting from the distribution service, starting from July 1, 2024, the institution informed us. The measure will not affect final bills much, which include numerous other tariffs, excise duties and VAT.

Thus, at the meeting of the Regulatory Committee on June 26, 2024, at the proposal of the specialized department, the Energy Regulatory Authority unanimously approved an average increase of 19% in the regulated natural gas distribution tariffs applicable to the beneficiary natural gas consumers of the distribution service, which represents approximately 10 lei/MWh distributed.

The change in tariffs is determined by three main factors: the increase in the costs of the natural gas distribution service with the forecasted inflation of 4.6% in 2024, the increase in capital costs following the achievement in 2023 of a record investment volume, both in new consumer connections , as well as in expansions of distribution systems in the concession areas, as well as as a result of reducing the amount of natural gas distributed in 2023 by 8%.

“As an example: for a household customer who lives in a 3-room apartment and has an annual natural gas consumption of 3 MWh, the monthly value of the natural gas bill could increase by approximately 2.5 lei,” ANRE explains.

In accordance with the provisions of the Energy and Natural Gas Law no. 123/2012 and those of ANRE Order no. 217/2018 on the approval of the Methodology for establishing regulated tariffs for the distribution service in the natural gas sector, ANRE approves the regulated tariffs for the natural gas distribution service and establishes the regulated tariffs for the provision of natural gas distribution services, differentiated, for each operator of distribution. These tariffs include, without being limited to, costs generated by the modernization and development of distribution capacities by expanding networks or by creating/establishing new systems/networks, as well as costs generated by connecting new domestic customer applicants, authorized natural persons, individual businesses, family businesses and public institutions, only if these costs are justified. The distribution tariffs are applied for one tariff year, for the period July 1 – June 30.

Currently, the draft order on the establishment of the regulated rate of the invested capital applied to the approval of tariffs for the transmission and distribution services of electricity and natural gas, for the fifth regulatory period, is in the final phase of elaboration. When establishing this rate, the Authority considers achieving a balance between the investment required to ensure the quality of natural gas and electricity transport and distribution services and the level of the tariff applied to the beneficiaries of these services. In the following period, ANRE will publish this draft order for public consultation, in an updated form.

 

 

 

 

 

 

 

Autor: Bogdan Tudorache

Active in the economic and business press for the past 26 years, Bogdan graduated Law and then attended intensive courses in Economics and Business English. He went up to the position of editor-in-chief since 2006 and has provided management and editorial policy for numerous economic publications dedicated especially to the community of foreign investors in Romania. From 2003 to 2013 he was active mainly in the financial-banking sector. He started freelancing for Energynomics in 2013, notable for his advanced knowledge of markets, business communities and a mature editorial style, both in Romanian and English.

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