Bogdan Tudorache

ANRE changed the rate of return of electricity distribution operators, setting a new index of 6.19%.

“The regulated rate of return (RRR), expressed in real terms, before tax, applied to the establishment of tariffs for the electricity distribution service provided by the concessioning distribution operators is 6.19%”, it is shown in a draft Order issued by ANRE.

At the same time, by amending another order, ANRE stipulates that “The regulated rate of return on invested capital granted for tangible and intangible assets related to the natural gas transport activity is the one approved for the electricity distribution activity for the fourth regulatory period.”

The value of RRR “resulting from taking into account the mentioned parameters, used in the calculation formula, is 6.19% expressed in real terms, before tax”, it is shown in the substantiation note, which takes into account various profitability indices, including some in the developed markets.

For Romania, however, an emerging market with growing CDSs after the crisis (credit default swaps – a tool that defines country risk, for foreign loans), the rate of return on government securities and interest rates could inflame after the coronavirus crisis, and as a consequence ANRE may have to change this index again.