The Romanian National Energy Regulatory Authority (ANRE) has adopted a new order introducing an advance payment obligation or guarantee for electricity purchase contracts concluded on the forward market.

Under the order, electricity buyers, whose delivery period starts more than one month after the agreement is signed and lasts at least three months, must include one of the following ways to guarantee the fulfillment of the agreement:

– advance payment, equal to 5% of the contract value for contracts with a delivery period of more than six months and 10% of the contract value for contracts with a delivery period of less than or equal to six months. Payment must be made within 15 days of the date of conclusion of the contract; or

– a guarantee covering 5% of the contract value for contracts with a delivery period of more than six months and 10% of the contract value for contracts with a delivery period of less than or equal to six months. The guarantee must be established and sent to the seller within 15 days of the contract’s conclusion date.

This requirement applies to forward contracts concluded on organised markets (e.g. OPCOM, Romanian Commodities Exchange). An exception to this mandatory provision is the organised market with continuous double negotiation of bilateral electricity contracts. In this case, the EFET contract is used.

The measure is intended to reduce speculative trading practices, where participants contract large electricity volumes without the intent to purchase and resell them before delivery for a profit. Such practices have contributed to market imbalances, price volatility, and reduced trust among market participants.

The order also clarifies that contractual prices may no longer be adjusted post-signing to reflect changes in transmission tariffs, which ensures greater price certainty and fairness. In addition, the minimum number of eligible counterparties required to validate continuous double-auction trading has been reduced from eight to four, with the aim of increasing liquidity and facilitating firm transactions.

Varinia Radu, Partner CMS Cameron McKenna Nabarro Olswang LLP SCP
Ramona Dulamea, Senior Counsel CMS Cameron McKenna Nabarro Olswang LLP SCP
Ștefan Baciu, Associate CMS Cameron McKenna Nabarro Olswang LLP SCP
Ada Romanti, Associate CMS Cameron McKenna Nabarro Olswang LLP SCP