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ANRE: RRR for distribution and transmission – 6.94% plus 1% for investment incentives

7 August 2024
Legal
energynomics

The rate of return (RRR) of the energy distribution and transmission operators, for the fifth regulatory period, remained at the value initially proposed by ANRE, of 6.94%. This will apply from January 1, 2025.

Thus, the Regulatory Committee of the National Energy Regulatory Authority unanimously approved on Tuesday, August 6, the new regulated rate of return (RRR) on invested capital applied to the approval of tariffs for electricity and natural gas transmission and distribution services, for the fifth regulatory period. This is 6.94%, writes Financialintelligence.

“The regulatory committee approved the new rate of return of 6.94%. In addition, we have criteria whereby, depending on the level of investment they will make, the distribution operators will receive another percentage. I want to state that ANRE is not a brake on investments. That is why we are introducing this principle by which we reward and reward distribution operators who understand the need for investments and who actually make these investments. I had several debates with all the actors involved, I contracted an independent study. After long discussions with the Specialized Directorate and all the actors involved, we decided on the new RRR. It is clear that there is a need for investments in these distribution networks with the limits of the consumers who, through tariffs, pay for these investments”, said George Niculescu, president of ANRE.

According to George Niculescu, for low voltage, accumulated over 5 years, the increase in the estimated bill is 50 lei/MWh. This value can change depending on the level of investments the operators make.

We note that the distribution and transmission operators requested a differentiated, much higher rate.

The current level of RRR is of 6.39%.

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