Phase
Law on energy efficiency no 121/18 July 2014
Native name
Legea nr. 121 din 18 iulie 2014 privind eficienta energetica
Type
Employer's obligation to improve energy efficiency
Added to database
17 May 2021

Article

Law on energy efficiency 121/2014 [Legea nr. 121/2014 privind eficienţa energetică] - 1, 8 Emergency Ordinance No 184 of 22 October 2020 for amending and supplementing Law No 121/2014 on energy efficiency [Ordonanță de Urgență nr. 184 din 22 octombrie 2020 pentru modificarea și completarea Legii nr. 121/2014 privind eficiența energetică] - 3, 8 Emergency Ordinance No 130 of 29 September 2022 for amending and supplementing Law No 121/2014 on energy efficiency [Ordonanță de Urgență nr. 130 din 29 septembrie 2022 pentru modificarea și completarea Legii nr. 121/2014 privind eficiența energetică] - 4


Description

The law aims to establish a legal framework to improve energy efficiency across various sectors, primarily including manufacturing, distribution and supply, and transport. The law has set out the national target of reducing energy consumption by 19%. The target was set for 2020. 

The law has introduced a number of strategic measures to achieve the goal, including removing barriers, introducing incentive schemes, promoting cooperation between end users, developing research, and encouraging energy services provision. The law also provides support for building and restoration of energy efficient buildings across private, public and commercial sectors.

For the purposes of applying the legal provisions, the National Energy Regulatory Authority (ANRE) by internal ANRE director, the Department of Energy Efficiency was established. The ANRE, through the Department of Energy Efficiency, will inform the government of compliance with the institutions involved in implementing this law, by the legal deadline for submitting reports. ANRE, through the Energy Efficiency Department, in collaboration with other competent authorities, promotes and regulates access to the market for energy services, especially for SMEs. The Ministry of Economy aims to develop programmes to encourage SMEs to undergo energy audits, as well as subsequent implementation of the recommendations of these audits.

With a view to achieving energy savings among consumers, energy efficiency policy measures shall be adopted between 1 January 2014 and 31 December 2020 aiming to save every year 1.5% of the annual energy sales volume to consumers of all distributors or energy suppliers by volume, calculated as an average over the 3 year period immediately prior to 1 January 2013.

The targets of energy savings resulting from the implementation of energy policy measures as the sum of the national energy efficiency plan shall be: a) 1% in 2014 and 2015; b) 1.25% in 2016 and 2017; c) 1.5% in 2018, 2019 and 2020, with the average annual primary energy consumption reference basis in the 3 years preceding 1 January 2013.

As part of efficient energy management, mentioned in the National Energy Efficiency Action Plan, the economic operators have to raise the interest of all employees in efficient energy use and educating them through specific energy loss reduction programmes.

The Romanian Energy Efficiency Fund is a financial institution providing commercial financing of investments projects aiming the rational use of energy (RUE). The Fund assists industrial companies and other energy consumers in adopting and use of modern technologies for efficient use of energy. Thus, the Romanian economy could be affected by the reduction of its final energy intensity and the mitigation of Green House Gases and other pollutant emissions. The Romanian Energy Efficiency Fund aims to promote a demonstrative effect, through the successful implementation of this GEF/IBRD energy efficiency project, and to increase the interest of the banking sector in supporting energy efficiency investments in Romania.

Public bodies, including those organised at regional and local level, as well as social housing bodies covered by public law, are encouraged, according to their competences and administrative structures: a) to adopt a self-sustainable energy efficiency plan or as part of a comprehensive climate or environment plan, containing specific targets and actions on energy saving and energy efficiency; b) to implement an energy management system, including energy audits, as part of the implementation of the plan referred to in point (a); c) to use energy service companies and energy performance contracts as appropriate to finance renovation and implement plans to maintain or improve energy efficiency in the long term . In order to achieve energy efficiency in buildings, the Ministry of Regional Development and Public Administration, as the competent authority in the field of construction, performs analyses and develops strategies, promotes public policies and specific legislation, initiates and monitors programs to increase energy efficiency in buildings.

According to Law on energy efficiency, no 121/18 July 2014 an authorized natural person, a legal entity can hold an energy auditor's license entitling them to carry out energy audits of consumers. The license is issued by the Ministry of Energy based on the Regulation on the authorization of energy auditors in industry, approved by an order of the Minister of Energy. Energy auditors who are natural persons carry out their activities as authorized natural persons or as employees of legal entities, in accordance with the legislation in force. The Directorate of Energy Efficiency of the Ministry of Energy monitors the achievement of energy savings and prepares an annual report for the previous year based on the reports received from the institutions involved in the implementation of this Law by 30 June of the year following the reporting period. The report is published annually on the website of the Ministry of Energy until 1 September of the respective year.

On its website, the Ministry of Energy published two regulations for the certification of energy managers and energy service companies and of the energy auditors for industry. In addition, the Ministry of Education authorized technical department of the universities to trainee persons for carry out thermal energy audits of industrial processes, energy process management in industry and for the implementation of locality-specific energy process management.

Law no 216 / 14 July 2022 amends and supplements Law no. 85/2014 on insolvency prevention and insolvency proceedings. The new amendments are a restructuring of Law 85/2014 and a long-awaited regulation of insolvency proceedings in view of EU Directive 2019/1023.One of the important changes is the abolition of the ad hoc mandate and its replacement by the restructuring agreement procedure. Other amendments regards the redefinition of the scope of the law, the main beneficiaries of the previsions of the law (in the case of the liberal professions, the procedures laid down in the law concern their undertaking and not their professional status) and new concepts are introduced. In addition, certain terms specific to insolvency proceedings are redefined, early warning procedure is introduced. The procedure specified that certain professionals are alerted by the tax authority to non-fulfilment of obligations and are provided with information on the remedies free of charge via a website. The aim is to give companies an early warning of a situation which, perpetuated in the absence of remedial measures, would have the potential to lead to default. The previsions from the law concerning the insolvency prevention procedure are modified.


Commentary

Law 562/2016 amends the 2014 text to transpose Directive 2012/27/EU.

The National Energy Efficiency Action Plan was drafted by an independent consultant contracted by the Ministry of Energy, on the basis of public information, and on the basis of relevant information concerning energy consumption, energy savings, investment plans and others, provided in August -  November 2017 by the following ministries/entities implementing efficiency measures Ministry of Development, Public Works and Administration, Ministry of Investments and European Projects, Ministry of Economy, Ministry of Transport and Infrastructure, Ministry of Agriculture and Rural Development, ANRE and Department of Energy Efficiency of ANRE, as well as economic operators; and their associates.

Emergency Ordinance No 184 of 22 October 2020 for amending and supplementing Law No 121/2014 on energy efficiency and Emergency Ordinance No 130 of 29 September 2022 for amending and supplementing Law No 121/2014 on energy efficiency supports the implementation of Directive (EU) 2018/2.002.


Additional metadata

Cost covered by
National government
Involved actors other than national government
Regional/local government
Involvement (others)
None
Thresholds
Affected employees: 249
Company size: No, applicable in all circumstances
Additional information: No, applicable in all circumstances

Sources

Citation

Eurofound (2021), Romania: Employer's obligation to improve energy efficiency, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/employers-obligation-to-improve-energy-efficiency/romania

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