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The grids of electricity and gas of Romania need investments of over 10 billion euro
The grids of electricity and natural gas distribution need investments of over 10 billion euro on a long term for the replacement of the infrastructure with overdue life span, according to a press release of the Federation of the Association of the Companies of Energy Utilities (ACUE).
Total investments made by the members of ACUE over the last ten years (2008 -2017) in the extension,rehabilitation and development of the grids for electricity distribution are approximately 3 billion euro. In the distribution of natural gas, investments of over 1 billion euro were dedicated to the modernisation and extension of the grids.
‘Between the investments made and the performance of the grids there is a strong correlation, according to a recent study made by an international consultant. In the sector of energy distribution, the medium duration of the interruptions was reduced by 60% and their frequency was reduced by 50% in 2016 against 2008, according to the most recent data published by ANRE’ the ACUE officials say.
The growth of efficiency due to investments is reflected in the evolution of consumption, which diminished in the last years. According to the most recent data published by ANRE in 2016, the losses in the grid against the level of 12.5% - the average for the country recorded in 2007.
Similarly, the expenses for operation of the operators of electricity distribution are more efficient, being with almost 72% under the average of the Central and Eastern Europe (ECE) according to the analysis of the consultancy company.
As compared to other EU countries, at mid-year last year,the final price of electricity for household consumers in Romania was among the smallest, with almost 13% under the ECE average and with 48% under the Western Europe average. For the industrial consumers, the price was under the ECE average and with 26% under the average of Western Europe.
The analysis indicates the fact that final prices of electricity for households and industrial consumers increased with one third between 2008 – 2016, the share close to the inflation cumulated for this period (36%).
The tariffs for household clients dropped with 18% in 2017 against 2014 and with 34% for the industrial clients against 2015. The yield per km of grid for the companies of distribution in Romania is among the lowest in Central and Eastern Europe; this is determined by the fact that Romania has one of the lowest density of consumption in Europe,with higher density of the consumption allowing lower tariffs for each client due to the high use of the grid.
The prices of natural gas for household consumers were,similarly, mid-year significantly lower in comparison to other European states: with approximately 21% under the average of Central and Eastern Europe (ECE) and with 49% less than the average of Western Europe. For non-household consumers, the price of gas was similar to the ECE average and 8% lower than Western Europe,the study mentions.
Final prices for household consuers are among the lowest in Europe,but as the income per household is the lowest in the member states ( with 62% under the European average at the level of 2016), the costs with energy reported at the power of purchase are under 8% over the European average and with 7% under the European average in the case of natural gas.
The ACUE federation has 30 members,among which there are important groups in the domain of electricity and natural gas> E.ON România, Engie România, Enel România, CEZ România, CNTEE Transelectrica SA, Societatea Energetic? Electrica SA, Wiee, Wirom GAS, Gaz Est with a total number of almost 27,000 employees and with annual turnover of over 5.5 billion euro.
The total value of investments made by the ACUE members in the period of 2005- 2017 surpasses 10 billion euro. The impact of the activities of companies in economy is a significant one, supporting indirectly other tens of thousands of workplaces.