CONFERINȚA "Viitorul pieței de capital românești" - Ediția a VI-a
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)
FINANCE MINISTRY LAYS GROUNDWORK FOR BUYING GOVERNMENT BONDS DIRECTLY THROUGH THE TREASURY
PSD LEADERS HAVE APPROVED THE CREATION OF A COMMISSION TO INVESTIGATE THE ANRE
THE MISSION OF BSE PRESIDENT LUCIAN ANGHEL
FINANCE MINISTRY ONCE AGAIN CONFIRMS WHAT BURSA HAS REPORTED BEFORE:
THE ONLY CANDIDATE FOR THE BOARD OF THE EXCHANGE, IN THE GENERAL SHAREHOLDER MEETING OF SEPTEMBER 14TH
ENERGY MINISTRY WANTS TO UPDATE THE ENERGY STRATEGY, BY MID-OCTOBER
Actualitate - vezi toate știrile mai jos.
Politică, 09:17
UPDATE/MINISTRUL JUSTIȚIEI, DUPĂ DECLARAȚIILE LUI KOVESI:
     * ACTUALIZARE 17:14 Tăriceanu: "Kovesi s-a supărat și l-a reclamat pe ministrul Justiției, sunt siderat"
     Președintele Senatului, Călin Popescu-Tăriceanu, a declarat astăzi, despre solicitarea trimisă la CSM de Laura Codruța Kovesi pentru a analiza dacă afirmațiile ministrului Tudorel Toader sunt de natură să afecteze independența sistemului judiciar, că este "siderat" de astfel de acțiuni și consideră că acestea arată doar lipsa de cunoaștere a justiției.
     * ACTUALIZARE 13:42 Șefa DNA sesizează CSM ca urmare a declarațiilor ministrului Justiției
     -----------
     Ministerul justiției, Tudorel Toader a afirmat în această dimineață că legalitatea unei hotărâri de guvern nu o verifică procurorii și judecătorii de contencios administrativ, declarația venind în contextul anchetei DNA în dosarul Belina.  detalii
Politică, 08:00
     * ACTUALIZARE 15:31
     Curtea Constituțională (CCR) a amânat pentru 3 octombrie decizia în cazul sesizărilor formulate de președinții celor două camere ale Parlamentului, Liviu Dragnea și Călin Popescu Tăriceanu, prin care cei doi cer ca șefa DNA, Laura Codruța Kovesi, să fie obligată să răspundă la întrebarea dacă a fost sau nu acasă la Gabriel Oprea în seara celui de-al doilea tur al alegerilor prezidențiale din 2009 și, de asemenea, ca Parchetul General să transmită o copie a dosarului către comisia parlamentară de anchetă privind scrutinul din urmă cu opt ani.  detalii
Internaţional, 17:05
     Patru dintre principalii indici bursieri de pe Wall Street, SUA, au deschis ședința de tranzacționare de astăzi în apreciere.  detalii
Companii-Afaceri, 16:53
     Comisia de buget din Senat a decis, astăzi, eliminarea majorării accizei la carburanți.  detalii
Macroeconomie, 16:07
     Comisia de buget-finanțe a Senatului a adoptat, în urma propunerii senatorului PSD Ștefan Mihu, un amendament astfel încât plata defalcată a TVA să fie obligatorie doar pentru companiile care au contracte cu statul, pentru restul companiilor, măsura urmând să fie opțională.  detalii
Ediții precedente
Newsletter Facebook Twitter YouTube LinkedIn RSS
Jurnal Bursier
26.09.2017
BURSELE DIN LUME
     Bursele din Europa au urmat un curs mixt ieri, după ce, în alegerile de duminică, cancelarul german Angela Merkel a câștigat cel de-al patrulea mandat în fruntea țării, însă și-a redus majoritatea...  detalii
26.09.2017
BVB
     * Titlurile FP, cele mai lichide
       Piața principală a Bursei de Valori București (BVB) a înregistrat, în ședința de tranzacționare de ieri, o lichiditate de 83,83 milioane de lei (18,23 milioane de euro), în contextul în care opt...  detalii
25.09.2017
BVB
     * Acțiunile "Fondul Proprietatea" au scăzut cu 1,41%
       Ședința de tranzacționare de vineri a ieșit în evidență prin scăderea tuturor indicilor Bursei de Valori București (BVB), BET coborând cu 0,48%, aceasta fiind cea de-a șaptea ședință consecutivă în...  detalii
25.09.2017
BURSELE DIN LUME
     Bursele europene au urmat un curs mixt vineri, în urma unui discurs al premierului britanic Theresa May privind ieșirea țării sale din UE.  detalii
22.09.2017
BVB
     * Piața, dominată de raportarea tranzacției prin care FP a vândut 2,56% din SNP și de listarea obligațiunilor IIB
     * "SIF Banat-Crișana" și-a răscumpărat aproape 540.000 din acțiuni,...  detalii
22.09.2017
BURSELE DIN LUME
     Bursele europene au urmat un curs pozitiv ieri, sectorul bancar fiind în ascensiune după ce Federal Reserve (Fed) din SUA a indicat, în ziua precedentă, că va continua să majoreze costul...  detalii
Cotații Internaționale

Curs Valutar

Curs valabil din data de 26 septembrie 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
3,0813
2,3515
3,1418
3,0091
0,1765
0,6181
0,2202
4,5990
5,2434
1,4778
3,4841
0,2194
0,4958
1,0737
0,0676
0,4821
1,1017
3,8912
0,2925
1,2319
0,5870
0,0596
0,3426
0,2169
2,8090
0,0385
0,1473
1,0594
0,6137
0,1173
163,4968
5,5077
..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
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...  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...  details
19.09.2017
     * Anghel continues to act illegally and puts Sobolewski on the list, even though he didn't submit his candidacy
       Three candidates have been included in the race for the CEO seat of the Bucharest Stoch Exchange (BVB), during the internal selection process initiated by the Board of Directors, namely, Paul...  details
13.09.2017
PSD LEADERS HAVE APPROVED THE CREATION OF A COMMISSION TO INVESTIGATE THE ANRE
     * Elections at the ANRE this autumn
       Social Democrat leaders have approved the request of PM Mihai Tudose to set up an investigation commission which would audit the activity of the National Authority for the Regulation of the Energy...  details
12.09.2017
THE MISSION OF BSE PRESIDENT LUCIAN ANGHEL
     * The press release about the results of the BSE has omitted mentioning the IPO of Nuclearelectrica
     * Even though it quotes PwC, the data posted by the BSE differs from that of the consulting firm
       In a promotional campaign that isn't justified by reality in any way, the Bucharest Stock Exchange (BVB) is being maneuvered by its president Lucian Anghel into posting wacky press releases...  details
11.09.2017
THE CONTRACT INCLUDES A NON-COMPETE CLAUSE
     Even though the Bucharest Stock Exchange has announced it is looking for a CEO, it is likely that Ludwik Sobolewski will remain on the payroll of the BSE for two more years, because his contract...  details
11.09.2017
FINANCE MINISTRY ONCE AGAIN CONFIRMS WHAT BURSA HAS REPORTED BEFORE:
     Hundreds of millions of Euros have gone from our banks to tax havens, Minister of Public Finance Ionuț Mișa states, in an interview with a financial newspaper. The official thus confirms what BURSA...  details
07.09.2017
     * "I hope that the government won't use the new fiscal regime of royalties as an intimidation tool against hydrocarbon producers"
     * Interview with PNL Lucian Bode, former minister of the economy
       Reporter: What is your opinion on the decision of the authorities to once again change the Energy Strategy?
     Lucian Bode: To me, the unreliability of the current government is...  details
05.09.2017
THE ONLY CANDIDATE FOR THE BOARD OF THE EXCHANGE, IN THE GENERAL SHAREHOLDER MEETING OF SEPTEMBER 14TH
     * Mr. Hanga hopes for a constructive approach and aimed at the future, and at the development of the BSE
       Radu Hanga, senior advisor for the Board of Directors of Banca Transilvania, is the only candidate proposed to fill out the Board of the Bucharest Stock Exchange, after the death of Cristian Micu,...  details
05.09.2017
ENERGY MINISTRY WANTS TO UPDATE THE ENERGY STRATEGY, BY MID-OCTOBER
     * State secretary Andrei Maioreanu: "The updating of the Strategy was necessary, because the existing draft was predominantly focused on the objectives expressed by the EU and less on the objectives of the Romanian energy system"
     * Ion Lungu: "Each government devises a new strategy"
       The amendment of the Energy Strategy in one month is a bad joke, says Jack Cutișteanu, CEO of Petprod, reacting to the announcement made by the representatives of the Ministry of Energy, according...  details
30.08.2017
ISAR, ABOUT THE CONSTANT INCREASE OF THE EURO:
     * Senator Daniel Zamfir wants to call Mugur Isărescu in for hearings, next week
     * Isar: "The opening of the parliamentary session involves multiple negotiations"
     * The leu has weakened to 4.5985 lei against the Euro
       The leu yesterday weakened again, reaching the level of 4.5985 lei against the Euro, after on Monday it was quoted at 4.5958 lei.  details
29.08.2017
     * Dochia: "The pension fund management firms will close down on their own if the fee gets eliminated"
     * Aurelian Dochia: "The government's communication is a permanent blunder, and the result is that nobody is interested anymore in what the authorities are saying"
     * PFP: "The current government, starting with its own prime-minister, is characterized by a ferocious economic illiteracy"
       The 2nd pension pillar continues to be the focus of politicians, who come out with conflicting statements on the matter. After last week, PM Mihai Tudose and deputy prime-minister Marcel have...  details
25.08.2017
THE BSE CRISIS
     The embarrassing situation generated at the Bucharest Stock Exchange (BSE) by its former CEO Ludwik Sobolewski, who, with the complicity of BSE president Lucian Anghel, has tried, against the will...  details
24.08.2017
IF THE CONTRIBUTION IS REDUCED
     * "If the state pension system is the only one that gets kept, eventually the state may be unable to pay the pensions", says Dochia
       The 2nd pension pillar is once again grabs the attention of the public, after information from sources surfaced yesterday that the Ministry of Public Finances intends to cut by half the...  details
23.08.2017
     Ludwik Sobolewski announced, on Monday night, that he has decided not to exercise his mandate as CEO of the Bucharest Stock Exchange, "even though he could", invoking an alleged difference...  details
.