When Romania joined the EU in 2007, it began an extensive investment program to fulfil its legal obligations and ensure compliance with EU drinking water quality and environmental standards.
The scale of the challenge facing the sector is given by the level of investment required in Romania to meet the expectations of all stakeholders, and the concrete solution was the establishment of an effective independent economic regulation to ensure the achievement of results. Relying on economic regulations requires Romania to reform and strengthen the role of ANRSC and increase the robustness of the price-setting and monitoring process. An effective regulatory, economic framework requires pricing to be set for a period of at least 5 years and reflect the examined business plans of water and sewerage companies.
The European Commission considers essential to improve the transparency and accountability of water supply services. Effective economic regulation is underpinned by robust data and consistent monitoring of operator performance and industry investment needs.
Given the current water industry context, it is essential that ANRSC set prices in a manner consistent with a financially viable industry.
ANRSC economic regulator
Thus, ANRSC has been strengthened to have the capacity and resources to effectively regulate the industry and to report transparently on the industry’s performance (both financial and service level).
The specialized legislation was harmonized and modified in the sense that ANRSC has the capacity of economic regulator for the water supply and sewage service.
More specifically, starting in 2022,
The pricing strategies related to the business plans are drawn up for a period of 5 years.
The economic regulation related to the pricing strategies related to business plans is based on the stimulation of investments in water infrastructure and wastewater, through the price cap method.
Each year of the business plan will include adjustments in real terms, which are the result of the investments that the operators anticipate they will implement. The tariff strategy related to the business plan is approved by the local public administration authorities or by the intercommunity development associations after obtaining the ANRSC’s approval, and subsequent increases in tariffs related to the years included in the business plan will also be made with the ANRSC’s approval.
The pricing strategies related to the business plans are updated whenever necessary and are revised if major influences are registered as a result of legislative changes, macroeconomic changes, or changes in the market of community public utility services.
Annually, ANRSC monitors the achievement of the efficiency and investment objectives contained in the business plan according to certain indicators.
If the local public administration authorities or the intercommunity development associations do not approve the pricing strategies related to the business plans, ANRSC approves for a period of 6 to 12 months the tariffs to be applied by the operators.