Italy’s energy giant Enel, which intends to take over local energy distribution companies Electrica Banat and Electrica Dobrogea, wants the distribution tariff on the Romanian market to be comparable to those on the markets in the region, such as Bulgaria, the group’s officials say.
The Bulgarian “model” suggested by Enel and applied to the Romanian market would lead to an up to 50% growth in the current distribution and supplying tariff, making power 12%-13% more expensive for consumers, National Electrical Power Regulating Authority (ANRE) says, while ANRE caps the increase in the end energy price for 2004 to 4%.
Inquired by Ziarul Financiar how high the distribution tariff on the Romanian market should be for Enel to consider it acceptable,” Vincenzo Cannatelli, Enel’s chief operating officer in charge of distribution, sales and infrastructure, answered,” We are still debating the tariff with ANRE. We expect a full document on tariffs by mid February… As for how high it should be, look at the markets in the region, such as Bulgaria.” The distribution tariff, worth $15/MWh in Romania, accounts for 20.9% of the total energy price and is one of the most important topics of negotiation between the Romanian State and the Italian investor. The talks conducted by Enel with ANRE so far have not targeted a specific value, but a manner of computing the tariff, as well as its medium (by 2007) and long-term outlook, as explained by ANRE’s chairman Ion Lungu.
“It’s true we have to send them a number of documents, i.e. one on the manner to compute the distribution tariff, endorsed in December and to which they requested clarifications and another paper that targets a principle document of ANRE on the tariff progression by 2007 and beyond. The third document is actually sort of a white book on ANRE’s position towards the medium and long-term market model,” Lungu specified. Enel’s consultant for these talks is London Economics (tariffs and regulation issues), while ANRE is advised by KEMA Consulting (Germany). For the actual transaction, Enel retained Musat si Asociatii (Musat & Partners) law firm. The Italians are the only contenders left in the race for Electrica’s two branches, which make about 380 million turnover together.
Enel, whose revenues amounted to 31bn euros in 2003, announced it was planning to invest 1-1.2bn euros in the two Electricas over the next 15 years in order to retool the network. The Italians will submit a final bid on March 8.
adrian.mirsanu@zf.ro