Electricity reform status in Romania and the assessment of the distribution privatization requirements

The restructuring and reform process of the Romanian power sector is developed in order to improve quality of services, and in the long term, to reduce the electricity and heat tariffs for the final consumer. In order to obtain this goal it was issued a legal framework which allowed it to create a new electricity wholesale market which is presented in this paper. In order to achieve its goals the reform needs to attract significant investment funds for improving the infrastructure and the technology now used in the Romanian power system. One of the main ways to attract this fund is the distribution privatization, a process which should be started as soon as possible. Distribution privatization requires a good understanding of the economics of the distribution and supply business and an efficient and professional control from the Romanian experts. Based on international experience and on the previous efforts made to identify the most appropriate ways to approach distribution privatization in Romania, the paper underlines the main objectives of this process and some elements regarding its good preparation