We would like to inform you about the following development on the Romanian power market starting 1 January 2023:
On 11 November, the Romanian Government adopted a new Government Emergency Ordinance (GEO 153/2022) through which the electricity wholesale market is almost completely eliminated starting 1 January 2023.
GEO 153/2022 brings considerable structural changes to the Romanian electricity market (including to existing GEO 27/2022 and GEO 119/2022), establishing a fully regulated and mandatory centralized acquisition and sale mechanism, operated through OPCOM (state-owned centralised market operator). The new mechanism will apply between 1 January 2023 and 31 March 2025.
In short, producers of electricity with an installed capacity of at least 10 MW will be obliged to sell all their available production to OPCOM at the fixed price of 450 RON/MWh. OPCOM will sell the power onwards at the same price of RON 450/MWh, to electricity suppliers that have contracts with final consumers and to the TSO and DSO. No competing platforms to OPCOM are accepted under the proposed scheme.
The only exemption provided from this new mechanism is for new generation capacities, for RES producers and for CHP producers.
IMPORTANT: Non-observance by electricity producers of the obligations to sell through the centralized market mechanism is punishable with a turnover fine between 1% – 5%.
The Government Emergency Ordinance can be consulted at the following link. The legislation is fully in force and applicable, even though it will have to be read, assessed and confirmed by the Romanian Parliament. However, there are no indications at the moment that significant changes will be brought during the approval process in Parliament.
The long-awaited decree on the method of calculating the price limit for electricity producers and electricity traders has been published. This is a regulation that complements the act on freezing electricity prices and implementing the clawback mechanism in Poland.
For electricity producers, the decree presents the rules and formulas specifying the price limit depending on the electricity generation technology: wind, solar, geothermal, waste, biomass, hydro, lignite, liquid fuels, hard coal and natural gas.
The published formulas show that the price is to take into account, inter alia, cost of fuel consumed, net efficiency of the generating unit, margin (determined as 3% of the electricity price from the day-ahead market, calculated as 80% of the price specified in the TGeBase index and 20% of the price specified in the TGePeak index for the day for which the write-off is calculated), allowance for investments and to cover the fixed costs (50 PLN/MWh).
For electricity traders and suppliers, the decree presents the method of determining the price limit (1) separately for electricity traded, excluding sales to end users, and (2) separately for energy sold to end users. The methodology is further distinguished between transactions (a) on the organised market places and (b) all other transactions. More specifically, the methodology for energy traders and suppliers is as provided below.
(1) Price limit for electricity sales transactions, excluding sales to end users:
- volume-weighted average purchase price of electricity bought on a given day multiplied by 1,015 (for transactions on organised market places),
- volume weighted average purchase price of electricity bought on a given day multiplied by 1,01 (for all other transactions).
(2) Price limit for electricity sales to end consumers:
- volume-weighted average purchase price of electricity bought on a given day multiplied by 1,035 + unit cost of renawables GOs, biogas GOs and energy efficiency certificates respectively (for transactions on organised market places),
- volume-weighted average purchase price of electricity bought on a given day multiplied by 1,03 + unit cost of renawables GOs, biogas GOs and energy efficiency certificates respectively (for all other transactions).
The regulation was issued only today and the industry has already raised some interpretation doubts, including how “volume-weighted average purchase” should be understood (as the regulation also uses the term “market price”). For more information, please contact us and consult our website:
https://www.correggionet.eu/2018/04/12/poland-pmeg-power/.
We would like to inform you that the Hungarian Energy and Public Utility Regulatory Authority (HEPURA) has decided to change the weekly data reporting on overdue payments and overpayments.
The obligation requires to report data on your buyers and suppliers and a list of non-residential contracts terminated for non-payment. Datasheet G680 has been now amended with additional details on open and overdue claims from customers and overdue supplier claims. The updated datasheet shall be submitted on Tuesdays, starting on 22 November 2022. As previously, the reporting form shall be sent via e-mail, to the attention of „szepessye@mekh.hu” and „foldgazfelugyelet@mekh.hu”, and uploaded via the EIA reporting platform. Please note that this reporting obligation is only applicable to the full-scale natural gas license holders.
For more information about this obligation, please consult the „Data on overdue payments and overpayments” section.
Yesterday evening, the act on freezing electricity prices and implementing the clawback mechanism in Poland was adopted. The law is now awaiting the president’s signature, and will enter into force the day after its publication. New law introduces a maximum price for electricity sold to eligible consumers (local authorities, small and medium-sized enterprises and sensitive consumers, e.g., schools, hospitals) at 785 PLN/MWh. Maximum price for households which exceed the 2,000 kWh threshold is set at 693 PLN/MWh. For enterprises and other sensitive consumers, the maximum price will apply from 1 December 2022 to 31 December 2023. In some cases, it will be possible to use the maximum price before 1 December 2022. Electricity sellers will be entitled to compensation for applying the maximum prices, to be calculated on the basis of the difference between the maximum price and the reference price. The total compensation level has been capped at 19,7 bln PLN. Compensation is to come from the clawback mechanism limiting the revenues of some electricity producers, including renewable energy installations, and trading companies (they will be required to pay contributions to the Price Difference Payment Fund in an amount linked to the volume of sold electricity). The Council of Ministers shall define, in a separate decree , the method of calculating the price limit for electricity producers, incl. different generation technologies, and for trading companies. This implementing decree is not yet available. For more information, please consult our website: https://www.correggionet.eu/2018/04/12/poland-pmeg-power/.
We would like to inform you about the following change in the CorreggioNET system: On 27 September ARERA published the resolution for the Annual Fee for 2022 – accessible as PDF as the following link. Payment of the Annual Fee is due by 30 November this year. Please note that the technical instructions to calculate the fee will be published in the coming days. The contribution has been lowered to 0,25 per thousand of the revenues resulting from the approved 2021 financial statements (compared to 0,31 per thousand in 2021). Stakeholders whose contribution would be lower or equal to € 100 are exempted to pay. Everyone is in any case obligated to send the data relating to the contribution through the ARERA online system by 31 January 2023. The content of CorreggioNET has been updated accordingly. For more information, please consult our Italy Power page on CorreggioNET.
We would like to inform you about the following change in the CorreggioNET system:
On 27 September ARERA published the resolution for the Annual Fee for 2022 – accessible as PDF as the following link.
Payment of the Annual Fee is due by 30 November this year.
Please note that the technical instructions to calculate the fee will be published in the coming days. The contribution has been lowered to 0,25 per thousand of the revenues resulting from the approved 2021 financial statements (compared to 0,31 per thousand in 2021).
Stakeholders whose contribution would be lower or equal to € 100 are exempted to pay. Everyone is in any case obligated to send the data relating to the contribution through the ARERA online system by 31 January 2023.
The content of CorreggioNET has been updated accordingly. For more information, please consult our Italy Gas page on CorreggioNET
We would like to inform you about the following change affecting the Romanian Gas market:
As per the requirements in art.IV (2), (5) and (7) of Government Emergency Ordinance 119/2022 (as amended), an Order of the President of the Romanian National Agency for Fiscal Administration (ANAF) was published on 25 October in the Official Journal of Romania, containing the procedure for: 1) payment of the “Contribution to the Energy Transition Fund” and 2) providing the collateral / guarantee of 1 mil EUR to ANAF.
The ANAF Order is in force starting 25 October 2022.
Please find at the link an convenience translation of Order of the President of ANAF.
The procedure laid-out is as follows:
1) Non-resident companies carrying out transactions on the energy market in Romania have the obligation to submit, directly or through a representative, to ANAF (National Agency for Fiscal Administration) an Affidavit, regarding the method of payment of the contribution to the Energy Transition Fund. The template Affidavit is found in Annex nr.2 of the draft ANAF Order (attached).
The time limit for submitting the Affidavit in Annex 2 is: 15 days from the date of entry into force of the Order, for non-resident companies already operating on the Romanian energy markets, as well as for those non-resident companies in the process of authorisation / licensing; and 15 days before obtaining the license to operate on the Romanian energy markets for the non-resident companies who will obtain the license after the date of entry into force of the Order.
2) All companies that fall under the obligation above have the obligation to provide a guarantee of 1 mil EUR (in RON) by Letter of Bank Guarantee or Cash (in an account of the State Treasury).
The time limit for providing the guarantee is 15 days from the date of entry into force of the Order, for non-resident companies already operating on the Romanian energy markets, as well as for those non-resident companies in the process of authorisation / licensing; and 15 days before obtaining the license to operate on the Romanian energy markets for the non-resident companies who will obtain the license after the date of entry into force of the Order.
3) ANAF (National Agency for Fiscal Administration) shall execute the guarantee in order to extinguish the contribution to the Energy Transition Fund, declared and not paid by the 25th of the month following the month for which it is due. In the event of execution of the guarantee provided (or part thereof), the company is obliged to re-establish the full 1 mil EUR provided as guarantee, not later than 15 days after execution of the guarantee (or part thereof) by ANAF (if applicable).
IMPORTANT: Failure to comply with any of the the above-mentioned provisions entails the suspension of the right to operate on the Romanian markets (i.e. suspension or cancellation of licenses by ANRE).
We would like to inform you about the following change in the CorreggioNET system:
As per the requirements in art.IV (2), (5) and (7) of Government Emergency Ordinance 119/2022 (as amended), an Order of the President of the Romanian National Agency for Fiscal Administration (ANAF) was published on 25 October in the Official Journal of Romania, containing the procedure for: 1) payment of the “Contribution to the Energy Transition Fund” and 2) providing the collateral / guarantee of 1 mil EUR to ANAF.
The ANAF Order is in force starting 25 October 2022.
Please find at the link an convenience translation of Order of the President of ANAF.
The procedure laid-out is as follows:
1) Non-resident companies carrying out transactions on the energy market in Romania have the obligation to submit, directly or through a representative, to ANAF (National Agency for Fiscal Administration) an Affidavit, regarding the method of payment of the contribution to the Energy Transition Fund. The template Affidavit is found in Annex nr.2 of the draft ANAF Order (attached).
The time limit for submitting the Affidavit in Annex 2 is: 15 days from the date of entry into force of the Order, for non-resident companies already operating on the Romanian energy markets, as well as for those non-resident companies in the process of authorisation / licensing; and 15 days before obtaining the license to operate on the Romanian energy markets for the non-resident companies who will obtain the license after the date of entry into force of the Order.
2) All companies that fall under the obligation above have the obligation to provide a guarantee of 1 mil EUR (in RON) by Letter of Bank Guarantee or Cash (in an account of the State Treasury).
The time limit for providing the guarantee is 15 days from the date of entry into force of the Order, for non-resident companies already operating on the Romanian energy markets, as well as for those non-resident companies in the process of authorisation / licensing; and 15 days before obtaining the license to operate on the Romanian energy markets for the non-resident companies who will obtain the license after the date of entry into force of the Order.
3) ANAF (National Agency for Fiscal Administration) shall execute the guarantee in order to extinguish the contribution to the Energy Transition Fund, declared and not paid by the 25th of the month following the month for which it is due. In the event of execution of the guarantee provided (or part thereof), the company is obliged to re-establish the full 1 mil EUR provided as guarantee, not later than 15 days after execution of the guarantee (or part thereof) by ANAF (if applicable).
IMPORTANT: Failure to comply with any of the the above-mentioned provisions entails the suspension of the right to operate on the Romanian markets (i.e. suspension or cancellation of licenses by ANRE).
We would like to inform you about the following development on the Greek electricity market:
During the clearing procedures of the Intraday Auctions, HEnEx calculates the withheld amount and the income of the producer for each electricity production unit or RES portfolio.
a. If the clearing price of the Intraday Auction per Market Time Unit, during which the transaction was executed, is less or equal to the administratively determined unit price (of par. 8 of article 12A of Law 4425/2016), the revenue of the power producer is calculated as: [energy quantity of the generating unit transaction] x [Intraday Auction settlement price]. The reimbursable amount is then zero.
b. If the clearing price of the Intraday Auction is higher than the administratively determined unit price, then the producer’s incomefor each transaction is calculated as: [energy quantity of the transaction] x [the administrative fixed unit price].
Please be advised that the new decree amending the electricity balancing market in Poland was adopted and published on September 27, 2022, and most of its provisions comes into effect within three days. The regulation is available here (in Polish).
The decree specifies the rules for submitting balancing offers and, above all, it introduces a cap on the balancing offer price at which producers are to provide electricity to Transmission System Operator.
Although this change does not affect your reporting obligations, it is of key importance for the energy market participants in Poland – it may reduce the liquidity on the wholesale market and remove the incentive from the consumers to self-balance.
For more information, please consult our website:
https://www.correggionet.eu/2018/04/12/poland-pmeg-power/.