BUCHAREST - Romanian energy company Societatea Energetica Electrica S.A. has initiated legal proceedings against the National Energy Regulatory Authority (ANRE), seeking the partial annulment of ANRE Order no. 97/2024, which concerns electricity tariffs and investment plans. Filed on Monday, the action by Electrica and its subsidiary, Distributie Energie Electrica Romania S.A. (DEER), challenges specific tariffs for electricity distribution and the price for reactive electricity set to be effective from January 1, 2025.
Electrica's legal action, submitted to the Bucharest Court of Appeal, contests the inclusion of specific periods in 2019 and 2020 within the application of a regulated rate of return (RRR) of 6.23%, as stipulated by the order. The company advocates for an RRR of 6.39%, equivalent to the rate established by ANRE Order no. 75/2020, and for this rate to be applied to tariffs for electricity distribution service by concessionaire operators.
Moreover, Electrica demands the regulated income of DEER to reflect the difference between the RRR used for revenue correction related to investment plans in the fourth regulatory period (RP4, 2019-2023) and the rate indicated in ANRE Order 75/2020. The company insists that these amounts be included in the tariff calculations within 30 days following a final court decision.
Simultaneously, Electrica lodged a preliminary complaint with ANRE under the Administrative Litigation Law no. 554/2004, mirroring the court action's objectives and requesting tariff adjustments within 30 days from the complaint's resolution.
DEER also filed a separate but related legal action on the same day, targeting the partial annulment of the Approval Report and ANRE Order no. 97/2024. The subsidiary's grievance includes the investment plans for the fifth regulatory period (RP5) and seeks acknowledgment of the value differences resulting from the correct application of ANRE Order no. 169/2018's provisions. These differences should be incorporated into the tariff calculations for the year 2026.
The legal challenges underscore Electrica's pushback against the regulator's decisions, which have significant implications for the company's revenue and investment strategies. The case is now pending before the Bucharest Court of Appeal.
Both Electrica and DEER have made it clear that their legal actions are aimed at ensuring fair tariff regulations that align with previously established rates of return on invested capital. The information regarding these legal proceedings is based on a press release statement.
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