ACER recommends aligning the Romanian gas transmission tariffs with the Network Code’s requirements

Today, ACER releases its report on the Romanian gas transmission tariffs directed at the Autoritatea Naţională de Reglementare în domeniul Energiei (ANRE), the National Regulatory Authority (NRA) of Romania.

The report assesses whether the proposed reference price methodology (RPM) complies with the requirements of the Network Code on Harmonised Transmission Tariff structures (NC TAR). 

What are the key findings?

After analysing the NRA’s consultation document, ACER finds that, while most of the required information is available, the absence of important elements prevents a complete assessment of the proposed methodology’s compliance with the Network Code requirements. In particular:

• ANRE did not provide sufficient justification for choosing the proposed postage stamp methodology, making it difficult for stakeholders to evaluate its suitability.
• While the postage stamp methodology may be appropriate, ACER cannot determine its compliance with the NC TAR principles (e.g. cost-reflectivity, preventing cross-subsidisation, and avoiding cross-border trade distortions) without further clarification.
• While the transparency and volume risk criteria of the NC TAR are not directly addressed in the consultation document, ACER could still conclude that the proposed methodology meets these requirements. Additionally, ACER did not identify any discriminatory elements in the proposed RPM.
• Although the criteria for setting non-transmission charges are met, the non-transmission revenue is not included in the allowed revenue, contrary to Network Code requirements.
• Finally, the criteria for setting commodity charges align with NC TAR requirements.

What does ACER recommend?

ACER recommends that the NRA, when adopting its decision, further justify the choice of the proposed RPM by including the following elements:

• Further considerations on the system’s technical characteristics and flow dynamics, focusing on distance as a potential cost driver.
• The conclusions drawn from the comparison of the proposed RPM with the Capacity Weighted Distance (CWD) methodology.
• A detailed assessment of the proposed RPM against all requirements outlined in Article 7 of the NC TAR.

ACER also invites ANRE to clarify how costs associated with the inclusion of the “transit” pipeline (part of the Trans-Balkan pipeline infrastructure) in the national transmission system have been taken into account.

Access all ACER reports on national tariff consultation documents.