The National Energy Regulatory Authority has developed a draft order that sets the prices at which natural persons owning installations that produce renewable energy (with installed power below 100 KW) will be able to sell the energy they produce to distribution operators at which are connected, so that they cover their current losses from the networks.
According to profit.ro, all that remains is for the Ministry of Public Finance to issue rules regarding the invoicing of these transactions, including the VAT, excise duties and income tax due for them.
On April 1, 2017, an amendment to the renewable energy subsidy law entered into force, which stipulates that “natural persons who own electricity production units from renewable sources with an installed power of less than 100 KW per place of consumption can sell the electricity produced and delivered in the electrical network belonging to the concessionaire distribution operators, in order to cover the own technological consumption of the electrical network (CPT – losses from the network – n.r.), at a price established according to ANRE regulations”.
After this, ANRE decided to establish the sale prices to distributors of renewable energy produced by individuals, referring to the methodology in force according to which ANRE establishes the regulated tariffs for energy distribution practiced by concessionaire operators in relation to customers.
When setting distribution tariffs, among many other factors, the estimated cost of electricity needed by distributors to cover network losses is taken into account. For this, before each change in the distribution tariffs, the distributors estimate the average price at which they will buy the respective energy from the market.
ANRE established that the sale prices to distributors of renewable energy produced by natural persons owning small green energy generating plants should be the same as the average prices with which distribution operators estimated that they would buy from the market this year the energy necessary to cover the losses of networks. These are the following, for each distributor, being between 183.01 and 187.54 lei/MWh:
These estimates were advanced by the distributors before the large price increases on OPCOM this year, when quotations on the spot market sometimes reached more than 600 lei/MWh.
It is not yet known how the energy sold to distributors by natural persons will be billed, nor the taxation regime of these transactions. According to the ANRE draft order, invoicing, as well as establishing the VAT, excise and income tax regime for these energy sales will be done in accordance with specific rules to be issued by the Ministry of Public Finance
The amendments to the renewable energy subsidy law, in force from April 1, provide that MFP has 5 months from that date to develop and submit to the Government for approval this legal fiscal framework, to ensure the sale of electricity produced and delivered in the network electricity from power plants below 100 KW belonging to natural persons. That means those rules should be finalized by early next month.