Standard Contracts For Energy Transactions, Operational In H2

National energy market regulator ANRE late last year created a standard contract for the energy traded on centralized markets managed by OPCOM. This type of contract contains the rights and obligations of the parties and payment terms, as well as cases of termination. Ion Lungu, President of the Association of Electric Energy Suppliers in Romania (AFEER) said: "Electricity producers and suppliers have been intensely debating the draft prepared by ANRE for the standard contract. Contract standardization through stipulated quantities and delivery deadlines is welcome on the free electricity market in Romania and will stimulate trading. We will have a clear price reference for certain period of time, ranging from month to one year. Now producers and suppliers must agree on the proposals that we are about to present to ANRE."

He added that talks among the active players on the energy market were quite fruitful and that he was hoping a final draft, convenient for everyone, would soon be available. "I am optimistic and I believe that the standard contract will become operational in the second half of the year," Lungu added. Energy suppliers have been stressing the need for such contracts on the Centralized Market for Bilateral Contracts (PCCB) for a long time, For the time being, the contracts available on this market differ from one producer to the next. The range of available quantities and delivery terms is very significant and benefits only the producers, not the suppliers, Lungu explained. Producers and suppliers will soon agree on standardized products and pass their decision to ANRE for endorsement.

Another step has been taken to improve the transparency of the energy market. The Product Group for the Development of the Next-Day Market (PZU) has recently approved the final version of the "Questionnaire on the assurance of the transparency of relevant information for the electric energy wholesale market." The Group has also finalized the "Set of bulk offers for PZU." Both documents are now subject to public debate an need to be approved by the energy market regulator before they come into effect.

Following the request for expressions of interest for the participation into the Product Group for the Development of the Next-Day Market sent by OPCOM to all market players, 26 operators sent letters of intent by the end of last year. OPCOM short-listed 11 participants whose activity will take place within the Product Group by the end of January 2010. The selected players are: CEZ Vanzare, Complexul Energetic Craiova, Complexul Energetic Turceni, EGL Gas & Power Romania, Electrica SA, Electrocentrale Deva, Electromagnetica, Elcomex, Enel Energie, Electrica Furnizare Transilvania Sud and Hidroelectrica. The selection was based on their representation, according to their participation in the PZU in 2008.