Shortcut To Power Supply And Trading Activities For EU Operators

An updated regulation on the licensing regime in Romania's power sector was recently adopted by ANRE, the national regulatory authority. On 17 March 2015, Order no. 12/2015 on the Regulation for granting licenses and authorizations in the electricity sector ("Order 12"), effective as of publication, was published in the Romanian Official Gazette no. 180/2015 and repeals the former regulation, ie Order no. 48/2013.

While Order 12 largely follows the principles set forth in the former regulation, it nevertheless brings certain novelties, in particular in the supply and trading sector.

1. Easier access for EU operators‎ to electricity supply and trading in Romania

   In the 2014 decision in the antitrust procedure it opened against the Romanian energy market operator OPCOM, the EC established that OPCOM had abused its dominant position by requiring all participants on the spot markets of the power exchange to have a Romanian VAT registration and consequently to establish business premises in Romania, even though foreign traders already have a VAT registration in their home country. Following this decision, ANRE is now lifting barriers to power supply and trading activities for EU operators, by:

   eliminating the requirement of having a permanent establishment in Romania as a pre-requisite for obtaining the license; and fully eliminating the requirement of holding a license issued in Romania for those operators licensed‎ in other EU Member States, subject to a sworn statement on the compliance with technical and commercial rules applicable in Romania. 2. Electricity trading is subject to a separate license

   Electricity trading - defined as the wholesale of electricity (including import/export activities) - was regulated, independently from supply activities, in the 2014 amendment to Law no. 123/2012 (the "Energy Law"). The general conditions attached to the trading license have already been enacted by way of ANRE Order no. 13/2015.

   The conditions underlying the trading license, both in terms of required documentation and financial capabilities, are less restrictive than those applicable to the supply license.

   ‎However, the supply license covers trading activities and, as such, no separate trading license is required or those parties who have already obtained a supply license.

3. The scope of works requiring a...