Electrica Furnizare
GABRIEL DUMITRAȘCU, ABOUT THE INCREASE OF THE PRICE OF ELECTRICITY:
BURSA 02.08.2017

EMILIA OLESCU, ANCUȚA STANCIU (translated by Cosmin Ghidoveanu)
 
mărește imaginea
     * Dumitrașcu: "Among other things, we recently even had to import the system services, and system services energy is three times more expensive than that on the Day-Ahead market"
       The price of electricity and its increase on the Day-ahead market (PZU) of the OPCOM exchange keeps causing discontent among the players and specialists on the market and is keeping consumers on edge, as they will probably feel the price hikes of the last year in their own pockets.
     The Competition Council (CC) is analyzing the market, the National Authority for the Regulation of the Energy Market (ANRE) monitors the trades, and opinions on the subject are divided. On one hand, the representatives of the authorities are saying that so far, no hints of manipulation have been found, and on the other hand, some specialists are saying, among other things, that there are information leaks in the market.
     Romania is facing a profound management crisis, which is what is causing this debacle in the system, says Gabriel Dumitrașcu, former head of the General Division for Privatization and the Management of the State's Energy Interests, of the Energy Department. "When a system is no longer managed professionally at any of its levels, this is the consequence. For about a year I haven't seen anything significant from the ANRE, the Ministry of Energy has no more leadership, and the Industry Commission of the Chamber of Deputies has generated this game. As long as there is unpredictability in the sector, the people in the commission are happy, because in autumn they will show up as saviors of the national energy system, which is not being managed properly. We are witnessing a profound management crisis in this area and that is why the market manipulation trend also exists.
     The solution for the resolution of this situation starts from a man or a team with a vision for the country, that would activate at the helm of the corresponding ministry, because in the end, the policies and energy strategies are made by the ministry.
     System reserve services have been paid for years on end - in Borzești, in Brăila, in CET 2 Craiova, in Hunedoara, in Midia and Paroșeni, in Ișalnița -, and now we have no way of doing the fine tunings in the system.
     Recently, we even needed to import the system services, and the system services energy is three times more expensive than the one on the PZU. Hidroelectrica has emptied the lakes and had nothing left to provide system services with. It only did processing, instead of keeping the lakes at a capacity of over 85% and nobody had any intervention".
     Mr. Dumitrașcu recently commented: "It won't be much longer and the light bulb will go out!" "I was publicly anticipating, three years ago, that in the absence of urgent, adequate measures, to counter the already developing trends, following the blunders and speculations that occurred in winter, the prices of electricity will explode. The increase in the average prices of electricity by over 50-60% on the Day-ahead market, in this period, compared to last year's similar period, are a consequence of the lack of vision, of strategy and public policies of the authorities, in the interest of Romanian consumers".
     * Specialists: "It is the supplier's job is to take the risk for the purchase on the Day-ahead market, not the consumers'"
     Concerning to the evolution of the price of electricity on the Day-ahead market, the specialists in the sector explained to us that weekly, we are seeing a periodicity of the prices, with the lows being seen on weekends and in the holiday days, and the highs on Wednesdays, generally.
     According to the quoted sources, in the energy system, "we also have an annual periodicity, the consumption is higher in winter and - since air conditioners have appeared - in summer, compared to spring-summer and summer-autumn, when the energy consumption is lower".
     The total energy output in July 2017 has decreased 10.8% YOY and consumption increased 2%, according to available information.
     In 2014-2015, prices on the Day-ahead market have been very low, and last year's prices have been in the medium range, market experts explained to us, and they mentioned that price is determined by context, and now "all last resort providers have filled out their energy needs on the Day-ahead market".
     At the same time however, "It is the supplier's job is to take the risk for the purchase on the Day-ahead market, not the consumers'", our sources are saying: "Suppliers have price formulas to transfer the price to consumers. Neither household consumers, nor industrial consumers are putting enough pressure on suppliers. They don't have to tie the end user price to the sale price on the Day-ahead market. The Day-ahead market is the suppliers' contractual risk, not mine as a contractor. In this context, we are talking about a transfer of risk. There are platforms on the OPCOM with 100 trading instruments, where the price is lower than on the PZU. But suppliers conclude contracts for one year and they wait for the day of the maturity of the contract, because they have a balancing problem, and they come on the PZU a few days prior to the maturity".
     Natalia Vlad, general manager of the Energy Market Division of the ANRE, thinks that the energy prices on the PZU reflect the market conditions. "We are facing a very low hydraulicity situation which has existed a few times before, and the results have been the same, meaning a drop of the supply in general in the market, which has been reflected particularly on the PZU through an increase in prices. Therefore, the increase in prices is a normal thing under these circumstances. This reaction of the market is considered a positive thing. If the market didn't react under these circumstances, then we'd have a problem".
     Ionel Ilie, a manager of the Oltenia Energy Complex: "The reason behind these prices is manner in which the producers are organizing themselves, depending on the resources used. There are some who produce electricity cheaply using hydroelectric sources, who earn a lot from system services and who have a huge profit, like Hidroelectrica. Other producers, who are coal based, have higher costs. If you think there is anybody who can influence the market, aside from Hidroelectrica, you are mistaken. Because Hidroelectrica is unique in the world when it comes to the way it is organized, there is no other company organized in that way".
     Martin Moise, vice-president of the Professional Association of Renewable Energy Producers, has blamed the increases in the price of energy on the fact that they are required to buy electricity to balance their fluctuating output: "It is a matter of regulations. Green energy producers, instead of dropping the price, they are actually hiking it, because the regulations require them to buy energy to balance themselves for those times when wind isn't blowing or there is no sun".
     Former Senator Dian Popescu, who amended the Law of energy 123/2012, says that one other factor that may be behind the recent increases in the price of energy may be a possible information leak in state owned companies, including managers, to the energy traders, about the bids they are going to make. In his opinion, this phenomenon of the increase of prices on the PZU can only be stopped by reorganizing Romania's entire energy system.
     Ion Lungu, the president of the Association of Electricity Suppliers in Romania (AFEER), was saying last year, that the core mission of the energy sector is to supply energy to consumers, "without interruptions and at reasonable prices".
     At the same time, Marian Cernat, an executive with the ANRE, said: "Consumers aren't required to move to the open market starting with January 1st, 2018, when the market will be completely liberalized, instead they can stay with their current suppliers and they won't feel any difference".
     * The evolution of the energy prices on the PZU, this year
     The prices of electricity on the PZU have exploded in January this year, which is when energy minister Toma Petcu made some statements which were subsequently described as irresponsible.
     In the beginning of the year, the official has asked for audits to see whether the winter preparations had been made, as things had come to the point where "the coal stocks are almost depleted, and with a risk of shutdown was encountered many times". The minister said that "the coal inventories in the thermoelectric plants would only allow operation for 4 days".
     Later, on January 15th and 23rd 2017, Romania saw the highest price of energy in Europe, reaching at 74.92 Euros per MWh, respectively 96.52 Euros on the MWh.
     The average monthly price seen on the PZU in January 2017 was 337.74 lei/MWh, compared to 184.38 lei - the average of January 2016.
     At the end of January, Enel was announcing that some energy suppliers have unilaterally denounced the contracts that they had, "in order to profit from the record prices on the exchange".
     The representatives of Enel commented at the time: "In these difficult moments one can truly distinguish between the market players who are doing what they promised and those who break their commitments". According to Enel, the regulatory framework needs to encourage long term projects, not speculative behavior.
     Also at the end of January, the Competition Council and the ANRE were analyzing the dubious transactions made in the first month of January, on the OPCOM.
     At the time, when Laurențiu Ciurel, former general manager of CE Oltenia, was saying that the lack of fuel was the main cause of the explosion in the price of energy, which was corroborated with the shutdown of a reactor in Slovakia, with the fact that for the first time in many years, Greece had a winter with low temperatures and with the fact that consumption has increased in the neighboring countries, compared to other years, Ion Lungu was saying that the essential factors of the energy crisis were tied to the increase in consumption, the cold, the drop of the level of the Danube, and the fact that all of these factors were not limited to Romania, but also applied to the Balkan area, as well as to Central Europe.
     Also, the AFEER has asked for the ANRE to speed up the analysis concerning the high prices of energy, the identification of causes and publicly announcing if distortions and people guilty.
     Briefly afterwards, namely on February 5th, the ANRE was saying that the manipulation of the market was not one of the reasons for the price of energy reaching record levels on the exchange in January, and claimed that the reasons were the termination of some contracts, the players' behavior, as well as the lack of water and of coal inventories, according to the ANRE.
     In context, Robert Tudorache, secretary of state in the Ministry of Energy, said that the ANRE should tighten the market regulations, and energy suppliers who terminate their contracts unilaterally should be sanctioned.
     Niculaie Havrileț, the head of the ANRE, also said, at the time, that in the energy supply contracts there should be harsher and clearer sanctions for their unilateral termination.
     The steep rise of the price of electricity on the spot market of the OPCOM has led to the withdrawal of the supply licenses held by Arelco Energy SRL and Arelco Power SRL, after the latter, which is controlled by Robert Neagoe, had filed for insolvency, as had Transenergo Com.
     The ANRE published, at the time, the names of the companies that broke the regulations in the field, including KDF Energy, Arelco Power SRL, Energy Distribution Services SRL, Alpiq Romindustries SRL.
     Energy suppliers should have a medium and long term strategy, not just buy all their energy on the spot market, as has happened in the first months of 2017 in Romania, Corina Popescu, state secretary in the Ministry of Energy at the time, said back then.
     The price of electricity has continued to rise in February as well. The average price for the month was 243.14 lei/KWh.
     In this context, Niculaie Havrileț said: "Consumers have to negotiate utility suppliers, especially those who provide bundled services, to get better energy prices for electricity and natural gas".
     Even though market prices subsequently dropped, reaching 165.48 lei/MWh in March, they started rising again during summer, to an average of 172.38 lei/MWh in April, 193.61 lei/MWh in May and 193.99 lei/MWh in June, respectively. In July 2017, the median price of electricity traded on the PZU climbed to 230.94 lei/MWh, compared to 137.65 lei/MWh in July 2016, according to OPCOM data.
     In the opinion of Martin Zmelik, CEO of CEZ Romania, the increase in the price of electricity starting with July 1st is the first unpleasant lesson of the liberalization of the market, and the authorities should review very carefully the situation, especially on the balancing market, because the prices are still very high.
     This summer's price increases over the similar period of 2016 are easily explainable, and they will impact the electricity bills in a few months, Ion Lungu said.
     The Minister of Energy Toma Petcu is telling citizens that they can negotiate with a local electricity supplier, in order to get higher prices.
     Niculaie Havrileț recently told us that on August 10th, a bidding procedure will be held for the last instance suppliers (Enel, E.ON, CEZ, Electrica) - who are required to provide the electricity supply if the other suppliers do not have energy available, and thus are required to have the quantities of energy available (last resort suppliers have higher prices than other suppliers that consumers can negotiate with). After the August auction, the authorities are hoping that a period with a higher degree of hydraulicity and stronger winds will come, and then, in the September October period, the ANRE would have to conduct a price analysis, to allow them to make a decision concerning the cost of consumers' bills. Meanwhile, the Competition Council is still working on a study of the increase of the prices of energy on the PZU - those of January and those of the summer months. 
 

 
Readers' comments    [ add a comment ] 
Aceeasi sectiune (English Section)
AT THE INVESTIGATIVE COMMISSION OF THE ACTIVITY OF THE ANRE
RADU CRĂCIUN, APAPR, ABOUT THE INVESTMENT OF PRIVATE PENSION FUNDS IN DIGI, A COMPANY WHICH HAS CRIMINAL ISSUES:
UNICREDIT WARNS THAT THE ROMANIAN GOVERNMENT IS REPEATING MANY OF THE MISTAKES THAT HAVE LED TO THE RECESSION OF 2009-2010
AFTER BEING FORCED TO MOVE THE BRD NĂSTASE ȚIRIAC TROPHY TOURNAMENT TO BUDAPEST
THE CONFERENCE "THE FUTURE OF THE ROMANIAN CAPITAL MARKET" - THE 6TH EDITION/MIRCEA URSACHE, ASF:
FINANCE MINISTRY LAYS GROUNDWORK FOR BUYING GOVERNMENT BONDS DIRECTLY THROUGH THE TREASURY
Actualitate - vezi toate știrile mai jos.
Internaţional, 17:13
UPDATE
     * ACTUALIZARE 19:36
     Principalul indice al bursei de pe Wall Street, Dow Jones Industrial Average (DJIA), a depășit astăzi, pentru prima dată în istorie, pragul de 23.000 de puncte, susținut de rezultatele trimestriale bune ale companiilor americane și de indicatorii economici pozitivi, relatează AFP.
     * Wall Street a deschis în creștere  detalii
Companii-Afaceri, 20:52
     Situația creată în urma sinuciderii patronului "Omnia Turism" este complexă, iar Ministerul Turismului caută soluții pentru mai multe probleme care au fost create de blocarea conturilor bancare ale agenției, imediat după ce s-a difuzat în mass-media vestea morții acestuia, se arată într-un comunicat al instituției trimis Redacției.  detalii
Companii-Afaceri, 20:10
     Agenția de turism "Christian Tour" se oferă să îi aducă în țară în cursul zilei de mâine pe turiștii români care au achiziționat vacanțe în stațiunea egipteană Hurghada de la compania "Omnia Turism".  detalii
Internaţional, 19:57
     Patru din principalii indici bursieri europeni au închis ședința de tranzacționare de astăzi în depreciere.  detalii
Companii-Afaceri, 19:30
     Comisia economică din Senat și Comisia pentru tehnologia informației și comunicațiilor din Camera Deputaților au amânat astăzi întocmirea unui raport de revocare din funcție a șefului Autorității Naționale pentru Administrare și Reglementare în Comunicații (ANCOM), Adrian Diță, până când Senatul, în calitate de Cameră decizională, va adopta o formă amendată a ordonanței ANCOM.  detalii
Ediții precedente
Newsletter Facebook Twitter YouTube LinkedIn RSS
Jurnal Bursier
17.10.2017
BVB
     * Titlurile "Fondul Proprietatea" conduc topul lichidității
       Săptămâna de tranzacționare a debutat cu un rulaj de 32,54 milioane de lei, superior celui înregistrat vineri, de circa 23 milioane de lei, în contextul în care cinci dintre indicii Bursei de...  detalii
16.10.2017
BVB / ÎN ULTIMA ȘEDINȚĂ A SĂPTĂMÂNII,
     * Dragoș Mesaroș, "Goldring": "După demisiile miniștrilor, de joi seară, probabil că investitorii au prins curaj, intrând la cumpărare"
       Ultima ședință de tranzacționare a săptămânii a încheiat în teritoriul pozitiv, toți indicii Bursei de Valori București (BVB) marcând creșteri.  detalii
16.10.2017
BURSELE DIN LUME
     Acțiunile tranzacționate pe piețele europene au înregistrat creșteri vineri, în baza evoluțiilor de pe segmentul materiilor prime.  detalii
13.10.2017
BVB
     * Avans de 0,26% pentru BET-NG
       Piața Bursei de Valori București (BVB) a înregistrat, în penultima ședință de tranzacționare a săptămânii, o lichiditate de doar 20,72 milioane de lei (4,51 milioane de euro), sub rulajul de...  detalii
13.10.2017
BURSELE DIN LUME
     Acțiunile societăților listate pe piețele din Europa au fluctuat ieri, traderii așteptând unele declarații ale președintelui Băncii Centrale Europene (BCE), Mario Draghi, într-un panel de discuții...  detalii
12.10.2017
BVB
     Ședința de tranzacționare de la mijlocul săptămânii a ieșit în evidență prin scăderea tuturor indicilor Bursei de Valori București (BVB), cea mai mare depreciere fiind înregistrată de BET-FI.  detalii
Cotații Internaționale

Curs Valutar

Curs valabil din data de 17 octombrie 2017
1 Dolar australian...
1 Leva bulgărească...
1 Dolar canadian....
1 Franc elvețian...
1 Coroană cehă...
1 Coroană daneză...
1 Liră egipteană...
1 Euro...
1 Liră sterlină...
100 Forinți maghiari...
100 Yeni japonezi...
1 Leu moldovenesc...
1 Coroană norvegiană...
1 Zlot polonez...
1 Rublă rusească...
1 Coroană suedeză...
1 Liră turcească...
1 Dolar S.U.A...
1 Rand sud-african...
1 Real brazilian...
1 Renminbi chinezesc...
1 Rupie indiană...
100 Woni sud-coreeni...
1 Peso mexican...
1 Dolar neo-zeelandez...
1 Dinar sărbesc...
1 Hryvna ucraineană...
1 Dirham emirate arabe...
1 Kuna croată...
1 Bahtul thailandez...
1 Gram aur...
1 DST...
AUD
BGN
CAD
CHF
CZK
DKK
EGP
EUR
GBP
HUF
JPY
MDL
NOK
PLN
RUB
SEK
TRL
USD
ZAR
BRL
CNY
INR
KRW
MXN
NZD
RSD
UAH
AED
HRK
THB
XAU
XDR
3,0589
2,3419
3,1070
3,9868
0,1778
0,6153
0,2206
4,5802
5,1608
1,4882
3,4723
0,2231
0,4911
1,0825
0,0679
0,4784
1,0651
3,8939
0,2911
1,2277
0,5882
0,0600
0,3442
0,2044
2,7972
0,0384
0,1465
1,0601
0,6102
0,1176
161,4840
5,4946
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
click aici pentru cursurile pieței valutare - istoric
English Section
16.10.2017
EXCLUSIVE
     * "The US and Saudi Arabia - the main sponsors of terrorism in the world"
     * (Interview with His Excellency, Mr. Hamid Moayyer, ambassador of the Republic of Iran in Romania)
       Donald Trump, the United States president, must decide by October 15th whether or not he will certify if Iran has followed the terms of the nuclear agreement signed in 2015 by Iran and six major western powers.  details
12.10.2017
EARTHLY LAWS, IGNORED ON THE BSE PLANET
     The Bucharest Stock Exchange (BVB), the operator of the Romanian capital market, still stands by the nonsensical claim made by its former CEO Ludwik Sobolewski, that his contract expired on August 21st, but not his mandate.  details
12.10.2017
AT THE INVESTIGATIVE COMMISSION OF THE ACTIVITY OF THE ANRE
     * Sources: PSD has four names for the head of the ANRE
     * Rumored names: Florentin Pandele, mayor of Voluntari, Iulian Iancu, president of the Industries Commission, former prime-minister Sorin Grindeanu and deputy Eugen Nicolicea
       Niculae Havrileț, the president of the National Authority for Regulation in the Energy Sector (ANRE), together with other members of the Regulatory Committee of the ANRE, will arrive before the Commission for the Investigation of the activity of the ANRE.  details
11.10.2017
RADU CRĂCIUN, APAPR, ABOUT THE INVESTMENT OF PRIVATE PENSION FUNDS IN DIGI, A COMPANY WHICH HAS CRIMINAL ISSUES:
     Mandatory private pension funds which have invested in Digi Communications, the parent company of RCS&RDS, which was indicted on money laundering and offering bribes, have taken this operating risk into account, by offering a lower price in the IPO, Radu Crăciun, member on the Board of Directors of the Romanian Association of Privately Managed Pensions (APAPR).  details
09.10.2017
     President of BURSA Press Group, Florian Goldstein (MAKE), participated, as speaker, on September 26th, at a debate regarding the future of the European Union, in Brussels, at the invitation of Group of the European People's Party.
     The subject of the debate can be synthesized in four questions:
     1. Would it be recommendable for the EU Non-Eurozone States to adopt Euro currency?(...)
     -------------
     Question nr.1 answers given by my fellow citizens are divided, and this summer polemic between the Euro MP Theodor Stolojan and Daniel Daianu (member of the Romanian National Bank Board of Directors) in the financial newspaper BURSA has shaped up the idea we could adopt Euro anytime (given the condition of maintaining the macroeconomic balances), an idea opposed to the one claiming Euro adoption should wait till the convergence criteria would be fulfilled.  details
09.10.2017
UNICREDIT WARNS THAT THE ROMANIAN GOVERNMENT IS REPEATING MANY OF THE MISTAKES THAT HAVE LED TO THE RECESSION OF 2009-2010
     * Vasilescu: "There are many crystal ball readers, even in the banking system"
     * UniCredit estimates that the leu will continue to weaken against the Euro to 4.6-4.7, in the first quarter of 2018, and that the policy rate will increase to 2.5%
       UniCredit Bank analysts are issuing a warning that the Romanian government is repeating many of the mistakes that have led to the recession of 2009-2010. The quoted experts are mentioning both the fiscal policy that is risky for the economy, as well as the fact that the leu will significantly weaken in 2018, and the deficit may increase to 3.7%. Among other things, the UniCredit report issued on Friday predicts an EUR/RON exchange rate of 4.7 and a policy rate of 2.5%, for the beginning of next year.  details
05.10.2017
AFTER BEING FORCED TO MOVE THE BRD NĂSTASE ȚIRIAC TROPHY TOURNAMENT TO BUDAPEST
     * Ilie Năstase: "If I was Țiriac, I would sue Mugur Isărescu"
       PNL senator Daniel Zamfir, president of the Budget Commission in the Senate, a vocal critic of the banking system, of the NBR and of its governor is adamant about bringing up the activity of the NBR from all angles.  details
03.10.2017
     * The BSE may be taken off the watchlist
     * FTSE only noted improvements when it comes to stock lending, while the liquidity requirement has not yet been met
     * Poland, upgraded to the emerging market status
     * Mongolia and Nigeria, removed from the watchlists
       The Bucharest Stock Exchange (BSE) remains a frontier market, for at least a year, after, on Friday night, FTSE Russell did not give promote it.  details
02.10.2017
     * Iulian Iancu: "We shouldn't stand out by being silent in Brussels and be forced to give natural gas to the neighboring countries, by taking it away from our industrial consumers"
     * Emil Calotă: "If we do not take action, the natural gas stored by the Romanian producers will remain unused, because there will be far cheaper imported gas available"
       The National Authority for the Regulation of the Energy Market (ANRE) has asked for the reconsideration of gas storage policies in Romania to be made a priority, Emil Calotă, the vice-president of the ANRE recently said, in the debates in the Industry Commission of the Romania Parliament about the Draft Law concerning the approval of the Government Emergency Ordinance no.64/2016 for the amendment and completion of the Law of Electricity and of natural gas no. 123/ 2012.  details
29.09.2017
LUCIAN ANGHEL:
     We can't expect Romania to be upgraded to the emerging market status right now, BSE president Lucian Anghel said yesterday, as FTSE Russell will publish today its annual classification report.  details
28.09.2017
     Central European Media (CME), the owner of Pro TV, is currently in negotiations to sell the four TV stations it still holds in Central and Eastern Europe, according to Echo 24, which quotes several concerned sources.  details
27.09.2017
     The Romanian Commercial Bank (BCR) is saying for the first time, that the sale of the Cemacon was made at a price of 1 Euro, and the lender stressed that this was done to save the company.  details
26.09.2017
THE CONFERENCE "THE FUTURE OF THE ROMANIAN CAPITAL MARKET" - THE 6TH EDITION/MIRCEA URSACHE, ASF:
     * Cappon, Prodan and Sobolewski yesterday had their interviews for the position of CEO of the BSE
     Ludwik Sobolewski is no longer the CEO of the Bucharest Stock Exchange (BVB), Mircea Ursache, the vice-president of the Financial Oversight Authority (ASF) said yesterday. He added that the ASF has conducted an analysis concerning corporate governance at the BSE.  details
25.09.2017
FINANCE MINISTRY LAYS GROUNDWORK FOR BUYING GOVERNMENT BONDS DIRECTLY THROUGH THE TREASURY
     The Ministry of Public Finance (MFP) has created the legal framework which will allow it to sell government bonds to the population directly through the State Treasury and intends to use that system for the next issue aimed at individual investors as early as this year, according to market sources.  details
21.09.2017
ANDRE CAPPON, CBM GROUP:
     Andre Cappon, the president of the CBM, Inc. group of New York, comes with a different perspective on the future development of the Bucharest Stock Exchange than that of the current management of the market operator. In his opinion it would be better for the BSE to remain one of the best frontier markets than joining the emerging market and then be demoted, as he told us in an interview.  details
.