He also stated that ANRE is considering changing the methodology for setting the tariffs to reduce the dependence of the operators on volumes transported/distributed, which in fact we believe would benefit the operators. In our view, this would be best achieved through a focus on tariffs on capacity reserved. Another envisaged change to the current framework relates to royalties, which might no longer be recovered from the consumers. Still, we place low chances on this change to materialize in the short term.
At present, we believe that most probably this monopoly tax would not be recognized in tariffs at least in the short term, which would be negative for Transgaz, Transelectrica and the gas and power distributors in Fondul Proprietatea portfolio, but we believe this has already been incorporated in the share prices.