According to a study by the Competition Council, between 2008 and 2022, the number of household consumers connected to electricity networks will increase by 481,956 to exceed 9.2 million. However, the institution draws attention to the fact that the average duration of connections has increased from 92 to 120 days and recommends developing a code of best practices so that things move faster.

From 2018 to 2022, the number of connections of household consumers to the electricity distribution network increased, with operators allocating significant funds both to the connection of new consumers and to the expansion of electricity networks of public interest (about 415 million lei, excluding VAT), according to a study conducted by the Council of competition issues.

Such intensification of activity took place after the implementation of provisions according to which end consumers were connected for free, and distribution system operators bore the costs.

“This measure has been particularly beneficial for less densely populated communities, where operators are reluctant to expand because costs are high,” said Bohdan Chiritsoyu, president of the Competition Council.

Thus, from 2018 to 2022, the number of household consumers connected to distribution networks increased from 8,798,964 in June 2018 to 9,280,920 in June 2022.

During the period when household consumers had, according to the law, free access to the network, that is, from the first half of 2020 to the second half of 2021, the number of applications for connection increased significantly. For example, the number of applications submitted online has increased more than 10 times, accounting for 40% of all applications.

However, there were also glitches in the connection process. They were mainly caused by frequent changes in legislation, distribution operators were forced to reorganize their activities and adjust relevant internal procedures.

In addition, legislative uncertainty in the short and medium term has led to an increase in the duration of the connection.

Thus, the annual average duration of the connection process increased by approximately 30%, from 92 days in 2018 to 120 days in 2021.

Bushy growth

If in the period from the first half of 2020 to the second half of 2021, the legislation provided for free access of household consumers to the electricity network at the expense of electricity distribution operators, then the current regulations provide that the applicant (household consumer) is obliged to carry out cost-effective design works and the execution of branches, being compensated by the operator only within the average cost of branching, the value set by the National Energy Regulatory Authority (ANRE).

In addition, the tender institution shows that the activity of connecting to electric networks is a complex process that involves many procedures, discussions, meetings and requests from distribution operators, as well as from other authorized business entities.

As such, people may have difficulty fully understanding the process simply by reading the statutory provisions.

Thus, the competition authority recommends providing the clearest, most predictable and transparent legal framework in which consultations will be held with entities affected by potential changes.

In addition, in order to reduce the connection time, the Competition Council recommends that NARE develop a code of good practice and make it available to interested parties.