European Commission Vs. Romania: The Romanian authorities have been sued for failing to comply with European directives on the energy market.

 

The European Commission has sued Romania for incomplete transposition of EU rules on the internal market for electricity and gas, and records reached the European Court of Justice. There are two reasons, one is the electricity and the other is natural gas, and the sueing started at 17 July 2013.

 

According to information HotNews, accusations are serious given that according to the European Commission, as plaintiff, Romania broke many of the obligations which they have assumed all Member States to transpose Directorate 72/2009 on the electricity market and Directive 73/2009 on the gas market. Commission asks the court that Romania to pay penalties of over 60,000 per day ( over 22 million per year) and costs. More serious is that the Romanian authorities have taken measures in March 2013 when they were warned that Romania will be sued until July when records reached the Court. Authorities have been reluctant so far to provide information about the process. See the text which charges.

 

The two Directives were transposed within March 3, 2011. Government did not comply with the deadline having then only some bills are in public debate. Those projects have suffered all kinds of changes, the authorities failing to reach a final form. In the summer of 2012 two projects were submitted to Parliament, one electric and one gas, were merged and adopted urgently, after some quick discussion with stakeholders.

 

So was born the Law 123/2012 on electricity and natural gas. During this perio , Romania is in the infringement procedure initiated by the European Commission. However, besides this law, should have taken a number of other measures, which did not happen, by the responsible authorities: Government, Ministry of Energy and the National Regulatory Authority for Energy ( ANRE). This is why the infringement procedure continued and reached the last stage, the action at the European Court of Justice.

 

Commission accused the authorities that have implemented several articles of individual directors or have not communicated the measures taken in this regard.

 

The charges related to transpose Directive on electricity

 

– It was translated an article that consumers have the right to receive all relevant consumption data. Member States must ensure that the rights of all consumers receiving data are provided in a non-discriminatory in terms of cost, effort or time .

 

– It was translated an article that Member States shall take appropriate measures to protect final customers, ensuring, in particular, adequate protection of vulnerable customers. In this context, each Member State shall define the concept of vulnerable customers which may refer to energy poverty and, the prohibition of disconnection of such customers in critical situations. Member States shall ensure that the applicable rights and obligations in terms of vulnerable customers.

 

In particular, they take measures to protect final customers in remote areas. Member States shall ensure a high level of consumer protection, particularly in terms of transparency of contractual conditions, general information and dispute settlement mechanisms. Member States shall ensure that the eligible customer can effectively and easily change supplier.

 

The government approved in May some help on increasing social aid, so that they offset higher energy prices, particularly natural gas. But this measure was not sufficient.

 

– It was translated an article that Member States shall take appropriate measures, such as the development of national action plans on energy, providing benefits in social security systems to ensure vulnerable customers or electricity supply required to support energy efficiency improvements and to address energy poverty where appropriate, including in the broader context of poverty. Such measures do not impede the effective opening of the market or market functioning and notified to the Commission. Notification may also include measures taken within the general social security.

 

It was not transposed Article that Member States shall ensure that electricity suppliers specify in the bill or in the documents attached to it, and in promotional materials made available to final customers, information about the rights and remedies available to them case of dispute.

 

It was not transposed Article according to which regulatory authorities where Member States have so provided or Member States shall ensure that technical safety criteria , and development and that technical rules establishing the minimum technical design and operational requirements for the connection the system of generating installations, distribution systems, equipment that connects consumers directly, interconnector circuits and direct lines.

 

These technical rules shall ensure the interoperability of systems shall be objective and non-discriminatory. The Agency may make appropriate recommendations to achieve compatibility of those rules, where appropriate. These rules shall be notified in accordance with Article 8 of Directive 98/34/EC of the European Parliament and of the Council of 22 June 1998 laying down a procedure for the provision of information on technical standards and regulations and of rules on Information Society services.

 

It was not transposed Article according to which the licensing procedures and criteria for new capacity are made ​​public. Applicants are informed of the reasons for any refusal to grant an authorization. The reasons must be objective,well-founded and duly substantiated. The carrying of the applicant must be available for review.

 

It was not transposed Article unbundling of transmission systems and transmission system operators. Member States must ensure that the same person or persons are not entitled to exercise direct or indirect control over an undertaking performing any of the functions of generation or supply and to exercise direct or indirect control or exercise any right over a transmission system operator or over a transmission system.

 

Same person are not entitled to appoint members of the supervisory board, the administrative board or bodies representing the undertaking legally if a transmission system or the transmission system, also to exercise, directly or indirectly, control or exercise any right over an undertaking performing any of the functions of generation or supply.

 

Government Transelectrica transferred from the Ministry of Economy to the Ministry of Finance to separate the carrier of the production, but it was not enough. There is suspicion that the Ministry of Finance, the majority shareholder of Transelectrica exercise control of electricity produceres. In this case it would be Remus Vulpescu, head of the cabinet of the Minister of Finance, he was appointed member of the Supervisory Board of Hidroelectrica. Also, the Fund, as a shareholde , exercise rights on both Transelectrica and the electricity producers.

 

 

– It was not transposed Article that undertakings which hold a transport system which have been certified by the national regulatory authority under the certification procedure below to meet the requirements of Article 9 shall be approved and designated by Member States as operators the transmission system. Designation of transmission system operators shall be notified to the European Commission and published in the Official Journal of the European Union.

 

– It was observed on certification in relation to third countries. The final decision, the national regulatory authority shall take into account the highest degree of opinion. However, Member States have the right to refuse certification where granting endanger security of supply and security of the Member State of supply to another Member State.

 

Where a Member State has designated another competent authority to consider (3 ) (b ), it may require the national regulatory authority to take final decision in accordance with the assessment authority concerned. The final decision of the national regulatory authority and the Committee shall be published together. If the final decision diverges from the Commission, the Member State concerned shall provide and publish, together with the decision, the reasons for that decision.

 

– No provision has been transposed according to which each independent system operator is responsible for granting and managing third party access, including the collection of network access charges, congestion charges revenue and payments under the compensation mechanism between system operators transmission system in accordance with Article 13 of Regulation ( EC) no. 714/2009, and the operation, maintenance and development of transport and for ensuring the long term ability of the system to meet reasonable demand through investment planning.

 

Regarding the development of the transport system, the independent system operator is responsible for planning (including authorization procedure), construction and commissioning of the new infrastructure. For this purpose, the independent system operator acts as a transmission system operator under this chapter. Transport system owners may not be responsible for granting and managing third party access, nor for investment planning.

 

If the designation of a transmission system operator, transmission system owner finance the investments decided by the independent system operator and approved by the regulatory authority, or give its agreement to financing by any interested party, including the transmission system independent. The relevant financial arrangements shall be subject to approval by the regulatory authority. Prior to such approval, the regulatory authority shall consult the owner together with other stakeholders .

 

– No provision has been transposed that each transmission system operator and each transmission system owner retains confidentiality of commercially sensitive which was obtained in the course of their activities and prevent the disclosure of information relating to discriminatory their activities and that could induce economic benefits. In particular, do not divulge any information commercially sensitive to other parts of the business, unless this is necessary for carrying out a business transaction.

 

In order to ensure full compliance with the rules on information unbundling, Member States shall also ensure that the transmission system owner and the remaining part of the enterprise does not use shared services, such services do not use common legal services, apart from purely administrative or functions.

 

Transmission system operators shall be prohibited, in the context of sales or purchases of electricity by related undertakings, the information commercially sensitive from third parties in the context of providing or negotiating access to the system.

 

– No provision has been transposed according to the distribution system, the operator is responsible for ensuring the long term ability of the system to meet reasonable demands for the distribution of electricity, operating, maintaining and developing under economic conditions of a power distribution system electrical safe, reliable and efficient in its area with due regard to the environment and promote energy efficiency.

 

– No provision has been transposed according to the distribution, the system operator shall have effective decision-making, independent from the integrated electricity in respect to assets necessary to operate, maintain or develop the network. To fulfill these tasks, the distribution system operator has the necessary resources including human, technical, physical and financial.

 

This should not prevent the existence of appropriate coordination mechanisms to ensure that the parent's rights are protected economic surveillance and oversight of management, in terms of return on assets of a subsidiary, regulated indirectly in accordance with Article 37 ( 6).

 

In particular, this shall enable the parent company to approve the annual financial plan, or any equivalent instrument, of the distribution system operator and to establish limits on the levels of indebtedness of its subsidiary. However, this provision does not permit the parent company to give instructions regarding day operations, nor with respect to individual decisions concerning the construction or upgrading electrical distribution lines, that do not exceed the terms of the approved financial plan, or any equivalent instrument.

 

– No provision has been transposed according to which in their internal accounting, electricity companies have separate accounts for each of the transmission and distribution activities as they would be required to do if the activities in question were carried out by separate undertakings, view to avoiding discrimination, cross-subsidization and distortion of competition.

 

Also keep accounts, which may be consolidated, for other electricity activities not relating to transmission or distribution. Shall keep separate accounts for supply activities for eligible customers and supply activities for eligible customers .

 

Revenue from ownership of the transmission or distribution system mentioned in the accounts. Where appropriate, consolidated accounts for other, non -electricity. Internal accounts shall include a balance sheet and a profit and loss account for each activity.

 

It was not transposed the provision that Member States establish criteria for granting building permits direct lines in their territory. These criteria must be objective and non-discriminatory.

 

– No provisions were transposed according to which regulators have the following functions: to monitor the occurrence of restrictive contractual practices, including exclusivity clauses which may prevent large non-household customers from contracting simultaneously with several suppliers or restrict their ability to make this choice, informed, where appropriate, the national competition authorities of such practices;

 

No provision has not been implemented according to the regulatory authority relations and exchange of information between transmission system owner and independent system operator, to ensure compliance by it of its obligations and, in particular approve contracts and act as dispute settlement authority between the independent system operator and the transmission system owner complaints about any of them.

 

Also, it was observed provision according to which authority shall ensure that network access charges levied by the independent system operator include remuneration for the owner or network owners that provide appropriate compensation network assets and any new investments in its provided that they are used economically and efficiently.

 

Was not observed any provision stating that regulators have the authority to require transmission and distribution system, if necessary, to modify the terms and conditions, including tariffs or methodologies specified in this Article, in order to ensure that they are proportionate and applied in a discriminatory manner.

 

In case of delay in the transmission and distribution pricing , regulators are empowered to fix or approve tariffs or methodologies provisional transmission and distribution and appropriate compensatory measures if the final tariffs or methodologies deviate from those provisional tariffs or methodologies .

 

– No provision has been transposed according to the regulatory authority shall closely consult and cooperate with each other and providing each other and the Agency with any information necessary to perform their duties under this Directive . Regarding the exchange of information , the authority shall ensure the same level of confidentiality as that required of the issuing authority.

 

– No provision was transposed that any regulatory authority and the Commission may request the opinion of the Agency on the compliance of a decision taken by a regulatory authority with the guidelines set out in this Directive or in Regulation ( EC) no. 714/2009 .

 

Any regulatory authority may inform the Commission if it considers that a decision relevant for cross-border trade taken by another regulatory authority does not comply with the guidelines set out in this Directive or in Regulation ( EC) no. 714/2009 , within two months from the date of that decision . The regulatory authority shall comply within two months, the Commission's decision to withdraw its decision and inform the Commission accordingly.

 

    The charges related to transpose the Directive on gas

 

– Not transposed provisions allowing Member States shall take appropriate measures to protect final customers shall in particular ensure adequate safeguards to protect vulnerable customers .

 

In this context , each Member State shall define the concept of vulnerable customers which may refer to energy poverty and , inter alia, the prohibition of disconnection of such customers in critical situations , from natural gas network . Member States shall ensure that the applicable rights and obligations in terms of vulnerable customers . In particular , they shall take appropriate measures to protect final customers in remote areas who are connected to the gas system . Member States may appoint a supplier of last resort for customers connected to the gas system .

 

They guarantee a high level of consumer protection , particularly in terms of transparency of contractual conditions, general information and dispute settlement mechanisms . Member States shall ensure that the eligible customer can effectively and easily change supplier .

 

Was not complied with any provision according to which Member States shall take appropriate measures, such as the development of national action plans on energy, bad provides social security benefits to ensure gas supply to vulnerable customers needed or to support energy efficiency improvements and to address energy poverty where appropriate , including in the broader context of poverty. Such measures shall not prevent effective market opening provided for in Article 37 and the functioning of the Commission shall be notified and , where appropriate, in accordance with paragraph (11 ) of this article. The notification does not include measures under the general social security system .

 

It was not transposed provision stating that where Member States have a system of authorization , they shall lay down objective and non-discriminatory to be met by an undertaking applying for authorization to build and / or operate natural gas facilities or applying for an authorization to supply gas .

 

Non-discriminatory criteria and procedures for granting authorizations shall be made public . Member States shall ensure that the procedures for obtaining authorization for facilities, pipelines and associated equipment take into account the importance of the project for the internal market in natural gas where appropriate .

 

– No provision has been transposed according to the regulatory authority , where Member States have so provided or Member States shall ensure that technical safety criteria , and development and that technical rules establishing the minimum technical design and operational requirements for the connection the system of LNG facilities , storage facilities , other transmission or distribution systems and direct lines .

 

These technical rules shall ensure the interoperability of systems and shall be objective and non-discriminatory. The Agency may make appropriate recommendations to achieve compatibility of those rules , where appropriate .

 

– As with the electricity directive was not transposed Directive separation of transport systems and operators transmission system . See above. If gas is TRANSGAZ carrier and has recently been transferred to the Ministry of Finance.

 

– No provision has been observed that the undertaking owning a transmission system and which have been certified by the national regulatory authority under the certification procedure below to meet the requirements of Article 9 shall be approved and designated by the Member States the transmission system operators . Designation of transmission system operators shall be notified to the European Commission and published in the Official Journal of the European Union .

 

Do not transposed the provisions relating to the powers of transmission system operators , storage and / or LNG . Among the most important is the finding that operators should refrain from discriminating between system users or classes of system users , particularly in favor of its related undertakings .

 

Also , it was observed provision stating that transmission system operators shall procure the energy they use to carry out their activities according to transparent, non-discriminatory and market based procedures .

 

 

– No provision has been observed that each independent system operator is responsible for granting and managing third party access , including the collection of network access and revenue of congestion for operating, maintaining and developing the transmission system , and to ensure long-term ability of the system to meet reasonable demand through investment planning.

 

Regarding the development of the transport system, the independent system operator is responsible for planning (including authorization procedure) , construction and commissioning of the new infrastructure. For this purpose, the independent system operator acts as a transmission system operator under this chapter.

 

Transport system owners are responsible for granting and managing third party access , nor for investment planning.

 

– No provision has been observed that each transmission system operator and / or LNG and each transmission system owner retains confidentiality of commercially sensitive which was obtained in the course of their activities and prevent disclosure discriminatory information on their activities and that could induce economic benefits .

 

In particular , do not divulge any information commercially sensitive to other parts of the business , unless this is necessary for carrying out a business transaction. In order to ensure full compliance with the rules on information unbundling , Member States shall also ensure that the owner of the transmission system, including in the case of a combined operator , distribution system operator , and the remainder of the firm does not use shared services , for example, not shared legal service , except for services purely administrative or IT.

 

It was not observed when a provision according to which the distribution operator is responsible for balancing the natural gas distribution system , rules adopted by it for that purpose shall be objective , transparent and non-discriminatory , including rules for the charging of system users of an imbalance network .

 

Conditions , including rules and tariffs, for the provision of such services by distribution system operators shall be established without discrimination and taking into account the costs , according to a methodology compatible with Article 41 (6 ) , and published .

 

It was not observed provision according to which the regulator has among tasks and : to respect and implement all relevant decisions legally binding , the Agency and the Commission, to monitor the investment plans of the transmission system operators and providing in its annual report an assessment of the investment plans in terms of their consistency with the Community plan network development , ensuring access to customer consumption data , providing for use with an optional title format understandable harmonized national consumption data and prompt access for all customers to such data.

 

Also , regulators responsible for fixing or approving sufficiently in advance of their entry into force, at least the methodologies used to calculate or establish the terms and conditions for connection and access to national networks . Responding and access to cross-border infrastructure .

 

It was not observed any provision stating that regulators have the authority to require transmission system operators , storage operators , LNG and distribution system , if necessary, to modify the terms and conditions, including tariffs and methodologies specified in this Article , in order to ensure that they are proportionate and applied in a discriminatory manner.

 

It was not observed any provision stating that any party having a complaint against a transmission system operator storage , LNG or distribution on the operator 's obligations under this Directive may refer the complaint to the authority regulation which, acting as dispute settlement authority , shall issue a decision within two months of receipt of the complaint.

 

– Not according to the provision from the regulatory authority shall closely consult and cooperate with each other and providing each agency and providing all information necessary to perform their duties under this Directive . Regarding the exchange of information , the authority shall ensure the same level of confidentiality as that required of the issuing authority.

 

 

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