Romania’s National Energy Regulatory Authority (ANRE) has issued a draft order for public consultation that proposes the introduction of a financial guarantee for electricity market contracts. Set at 30% of the contract value, the guarantee is intended to bring more structure and stability to the electricity trading environment, according to ANRE President George Niculescu.
Under the proposed regulation, buyers in electricity transactions would need to secure part of their contractual obligations with a financial guarantee. This measure mirrors similar guarantees introduced for natural gas contracts in 2018, which have been in the form of bank guarantees or cash deposits. The new regulation is designed to create a more robust and mature electricity market. While lacking such guarantees may provide greater short-term liquidity, it also increases the risk of contract breaches and speculative trading without financial backing. The aim of the mandatory guarantees is to enforce accountability and reduce financial risk within the market.
The draft suggests that for standard electricity contracts starting more than a month after the signing date and lasting at least three months, buyers would need to make an upfront payment equal to 30% of the total contract value. The remaining balance would be paid according to the agreed terms. Niculescu noted that the proposed percentage is not final and is open to adjustments based on feedback from market players such as suppliers and traders. If there are strong arguments that the 30% threshold is too high, ANRE is open to reviewing it to avoid disrupting normal market operations.
The regulator also highlighted that the introduction of financial guarantees could reduce speculative practices, such as buying electricity well in advance and reselling it for profit without using or delivering the energy. These practices currently create market imbalances, and requiring a financial stake would promote more responsible trading.
The explanatory note on ANRE’s website emphasizes the need to strengthen financial safeguards for forward market transactions in response to market volatility and increasing risks of non-payment. Current financial instruments have not always been effective, and the proposed advance payment model is seen as a critical step in enhancing contractual reliability and discouraging speculative behavior. Overall, this proposal represents a strategic shift toward a more disciplined and secure electricity market in Romania, aligned with existing practices in the gas sector and addressing the evolving dynamics of the energy market.
