ROMANIA Law and Practice Contributed by: Miruna Suciu, Suciu Partners
er than through individual governmental approvals, and participants engaging in cross-border trading must comply with the applicable licensing, balancing and market participation requirements. Imports and exports occur regularly depending on market condi- tions, generation availability, renewable output, net- work constraints and regional price signals, meaning Romania may act either as a net importer or a net exporter depending on demand levels and the avail- ability of domestic generation resources. Electricity imported into Romania is generally priced through the coupled European market mechanisms and is reflect- ed in the wholesale market price formation process, while exported electricity is priced according to the market conditions prevailing in the relevant destina- tion bidding zones. 2.3 Supply Mix of Electricity Romania benefits from a relatively diversified electric- ity generation mix compared to many other jurisdic- tions in the region, where hydropower remains one of the most important sources of electricity generation, alongside nuclear energy produced at the Cernavodă nuclear power plant. Natural gas-fired generation also plays a significant role in the system, while coal-fired generation continues to contribute to supply, although its share is expected to decrease over time as part of the energy transition process. Renewable energy sources have gained increasing importance in recent years, wind generation representing a significant com- ponent of the renewable mix, particularly due to the development of projects in the Dobrogea region, while solar generation has experienced substantial growth following a new wave of investments in utility-scale and distributed generation projects. The share of bat- tery energy storage remains limited but is expected to increase significantly as new projects are developed and integrated into the electricity system. 2.4 Market Concentration Limits Romanian law does not impose a general fixed mar- ket concentration cap, such as a maximum percent- age of electricity supply that may be controlled by a single undertaking, meaning market concentration is mainly controlled through general competition law, merger control rules and sector-specific energy regu- lation. The principal framework consists of Competi- tion Law No 21/1996, Electricity and Natural Gas Law
No 123/2012, the EU and Romanian merger control rules, REMIT and the secondary regulations issued by ANRE. The Romanian Competition Council is the main authority responsible for assessing mergers, acquisitions and anti-competitive conduct, includ- ing abuse of dominance, restrictive agreements and transactions that may significantly impede effective competition. Where the applicable turnover thresholds are met, transactions must be notified to the Competi- tion Council before implementation, and the author- ity may clear a transaction unconditionally, approve it subject to commitments, or prohibit it where com- petition concerns cannot be addressed. ANRE also has oversight over licensed electricity activities and market conduct, particularly in relation to wholesale market transparency, compliance with license condi- tions and REMIT obligations, where non-compliance may trigger administrative fines, remedies, or license restrictions. 2.5 Surveillance to Detect Anti-Competitive Behaviour The Romanian electricity market is subject to both competition law enforcement and sector-specific mar- ket monitoring under the legal framework of Compe- tition Law No 21/1996, Articles 101 and 102 of the Treaty on the Functioning of the European Union, Reg- ulation (EU) No 1227/2011 on wholesale energy mar- ket integrity and transparency (REMIT), Electricity and Natural Gas Law No 123/2012 and the related sec- ondary regulations. The Romanian Competition Coun- cil is the primary authority responsible for investigat- ing anti-competitive agreements, abuse of dominance and merger control matters, while in the energy sector, ANRE also exercises supervisory powers in relation to licensed activities and market conduct, REMIT com- pliance being monitored within the applicable Euro- pean regulatory framework. The Competition Council has broad investigative powers, including the right to request information and documents, conduct inspec- tions at business premises, review electronic records and interview relevant individuals, meaning it may initiate investigations on its own initiative, following complaints or because of information received from other authorities. Where anti-competitive conduct is established, the Competition Council may impose significant administrative fines, behavioural remedies or other corrective measures, and infringements of
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