Union Fenosa worried about the new methodology for tariff calculation

The electricity distribution companies RE Chisinau, RED Centru and RED Sud are worried about the consequences of applying a new methodology for calculating the tariff of electric energy, approved on August 10 by the National Agency for Energy Regulation (ANRE). “Such a methodology for calculating the tariff price will harshly hit energy distributors, which will record negative results and will lose investment capacities. The freshly approved tariff system doesn’t attract investments. As a result, consumers will be the ones to suffer most”, Union Fenosa said in a press release. Distribution companies regret the fact that ANRE ignored the proposal to involve foreign independent experts in drafting the document. “Applying such a tariff methodology will compromise substantially the business plans for the next 5 years of RE Chisinau. RED Centru, RED Sud. The newly created situation reduce minimally the plans of investments for the 2008-2012 period, which could decrease from 1.4 billion lei to 20 million lei”, the press release reads. The Union Fenosa Group declared that it reserved itself the right to take action in court in order to defend its interests. According to the general director of ANRE, Vitalie Iurcu, a new methodology was needed to create equal conditions for all the distribution companies. The document contains a single methodology for calculating the tariff for electric energy and applying a 13% universal rate of return for all distributing companies. Also, the losses included in the tariff were reduced from 16.5%, requested by Union Fenosa, to 14.4%, and will further drop to 12.5% in the following 5 years.