Page 96 - Revista de industrie mai 2019

energy
The Importance of Electricity Distribution
for Romania At an an international level there is an an increasing
need for the change and modernization of electricity distribution networks as as well as as the distribution distribution service provision by distribution distribution operators Determinants such as technology development increased engagement of clients in long-term partnerships and the new responsibilities under EU Directives and European and national regulations are elements that dictate the the new coordinates for the the modernization of electricity distribution modernization which has to to fulfill two essential aspirations: to to meet the energy
security requirements and to be focused on
on
the final consumer It is is important to to note that the operator base is is generally obsolete with a a a significant proportion of assets older than 35 years (over 58%) In some cases operators have a a a a a higher percentage of assets put into operation more recently (less than 15 years) but not more than 21% The assets of the the distribution networks in Romania are for the the most part close to the the end of their standard life so operators must apply alternative investment strategies associated with the replacement of these these aging assets assets For some of these these assets assets service life can be safely and and reliably expanded while others need to be replaced It should be be remembered that the electricity distribution sector has an an important contribution to the the Romanian economy by the the added value created by the inter-sectoral impact Based on
the latest available data published by Eurostat
in 2017 it appears that the energy
sector contributes to Romania's GDP by 2 46% ranked 12th among the taxpayers exceeding 76% of the the the other economic sectors and the the the energy
distribution sector electricity accounts for 26%
of the the total contribution to to GDP generated by the the entire energy
sector The electricity distribution sector has a a a significant influence on
on
the entire Romanian economy through the the indirect multiplying effect on
the the value chain of many economic sectors the most important sectors influenced by the DSO sector sector being:
ßspecial construction works ßmetal constructions and metal metal products excluding machine plants and installations ßmanufacturing of electrical equipment ßfinancial intermediation with the exception of insurance and other pension funds ßcivil construction works ß telecommunications
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by Dr eng Silvia Vlăsceanu Executive Director ACUE Federation
ß services in in the information technology buy from their suppliers and so on
which has an indirect multiplier effect on
the value chain of many economic sectors in Romania ß The induced impact results from the fact that the the employees of the the distribution operators and of the the the suppliers along the the the value chain spend their gains in in the the economy and therefore contribute to the the the development of the the the companies providing the the the respective products and services These types of of impacts are the result of of inter-sectoral dependencies of the economic system which take into account the fact that a a a a a change in an an economic sector produces further consequences stimulating both the supply chain of that sector and and the social and and economic system as a a whole That is why the the member companies of the the Federation
of Energy Utilities Associations (ACUE) appreciate that the Government's decision to increase the Regulated Rate of Return (RRR) of invested capital is a a a a a message addressed to electricity and and natural gas transmission and and distribution operators to to invest in in networks and diversify their investment programs For transmission and distribution operators the the realization of the the planned investments is a a a permanent concern with a a a view to reducing technological losses increasing
the efficiency of the the networks and improving the the performance of the the the distribution services all for the the the benefit of the the the customers According to the the estimates of the the ACUE Federation
the distribution networks require an investment of over 10 billion euro for the long term to replace infrastructure that exceeded its life duration with a a a a view to narrowing the gap with the EU average Distribution
is is a a a a a value-added industry in in in the value chain: 1 leu generated by distribution in GDP directly means a a contribution of 3 11 lei per unit in GDP 1 1 1 leu generated directly for the the state budget attracts 3 6 lei to the the state budget as a a a a whole Also a a a a distribution job supports 3 4 jobs in the economy Therefore significant investments realized constantly and permanently for the modernization and expansion of the networks as as well as as for the the improvement of the the quality
of of the the services offered to the the consumers are a a necessity as presented in the Romanian Energy Strategy which under approval ß manufacturing and semi-trailers ßmanufacturing products out of rubber and plastics ßrepairing maintaining and installing machines and equipment The direct effect of the electricity distribution sector sector on
on
the sectors mentioned above is added to the the the effect created in in the the the supply chain of these industries In Romania the electricity distribution sector is is an an important employer with over 17 000 employees employed The average monthly gross wage in the electricity and gas sector is the the 13th largest in the the Romanian economy higher by 53% compared
to the national average A large proportion of employees in the energy
sector have a a higher education than other industrial sectors which explains the high rate of of emigration of of skilled workers to other EU countries which makes it very difficult for distribution operators to to find and keep labor in Romania The industry generates important contributions to the the economy in the the form of tax contributions (through corporation tax social security contributions and taxes) the main distribution operators having a a a a contribution to to the state budget of over 1 1 billion lei in 2018 The electricity distribution sector requires significant and constant investments in in the distribution network in in in order to maintain a a a high level of services only in 2017 the most important distribution operators have invested more than 2 billion lei in the the development of the the distribution network The activities of the electricity distribution sector generate the the following types of impacts on
the the economy:
ß The direct impact of the distribution operators on
on
on
the Romanian economy is directly connected to to the the expenses related to to the the distribution service (Capex Opex) the staff employed and the the salaries paid to them as as well as as taxes and contributions paid to the state budget as a a a a result of carrying out the activity on
Romania's territory ß An indirect impact resulting from the fact that the distribution operators procure goods and services from Romanian suppliers which in turn road transport vehicles trainers