Hidroelectrica reacts to ANRE decision on 5% regulated profit, says it’s illegal and unconstitutional, violates European directives

The order issued by the National Regulatory Authority for Energy (ANRE), published by the Official Gazette, reading that all energy producers will have to supply this year electricity at a regulated price with a 5% profit margin on justified costs, violates the constitutional liberties on economic freedom and violates the Constitution of Romania, Hidroelectrica says in a release on Tuesday. It also argues it violates the national legal framework and the European directives.

Hidroelectrica says the methodology builds an uncertain and unpredictable economic environment for producers, without concrete calculation formulas, only released based on estimations which could lead to significant damages, as the profit margin of 5% is not enough, considering the risks.

Order 10/2019 issued by the President of the ANRE, published by the Official Gazette, reads that all energy producers will have to supply this year electricity at a regulated price with a 5% profit margin on justified costs,

ANRE also provided in the Order that Hidroelectrica and Nuclearelectrica will have to supply under the regulated regime up to 65% of the output, with the mention that this decision will not be enforced this year.

The methodology is part of the regulation package enforceable during March 1, 2019 – February 28, 2022, aiming to ensure the supply of electricity for household consumers from suppliers of last resort in regulated conditions. The enforcement of the methodology will not lead to price increases for the energy supplied to final household consumers opting for supply of energy in regulated regime during March 1, 2019 until February 28, 2022, the ANRE release reads.