3514
Distribution of electricity
This code covers the activity of electricity distribution, i.e., the transport of electricity from the high-voltage network to final consumers through medium and low voltage networks. Essentially, it involves the operation and maintenance of distribution infrastructure (substations, transformers, lines) to ensure the continuous delivery of electricity to homes, businesses, and institutions. In Romania, this activity is strictly regulated by ANRE and requires a distribution license.
Entrepreneur Profile
Acest cod este destinat exclusiv companiilor care dețin sau operează rețele de distribuție a energiei electrice, inclusiv operatorii de distribuție (OD) autorizați de ANRE. Nu este potrivit pentru persoane fizice sau microîntreprinderi care nu au licență de distribuție.
Who should avoid:
Avoid the exclusive use of code 3514 if the main activity of your company shifts towards other commercial or related branches not specified in the official description. See the excluded activities section below.
Authorization procedure and Trade Register aspects for NACE 3514
Setting up a company that will carry out the activity of electricity distribution (NACE 3514) requires going through the standard stages at the Trade Register (ONRC), with the mention that the main object of activity must be NACE code 3514. For registration, the constitutive documents are submitted, and the affidavit according to Law 359/2004 certifies compliance with the operating conditions. Subsequently, the registration certificate is obtained, and the company must request fiscal registration and declare the corresponding fiscal vector. It is mandatory to register with the Trade Register and obtain the distribution license from the National Regulatory Authority for Energy (ANRE) before starting the actual activity.
Regulatory framework, specific approvals, and control institutions
Electricity distribution is a strictly regulated activity. The main normative act is the Electricity and Natural Gas Law no. 123/2012, and ANRE issues technical and commercial regulations. For grid access and operation, technical connection approvals and certifications (e.g., ISO 27001 for grid security) are required. The control institutions are ANRE (for compliance with regulations), the Tax Authority (ANAF) (for fiscal matters), and the Environmental Guard (for environmental impact). Distributors must also comply with reporting obligations to the National Authority for Consumer Protection and implement energy efficiency measures according to applicable legislation.
Fiscal management, ANAF audit risk, and specific accounting
From a fiscal perspective, companies carrying out the activity NACE 3514 are liable for corporate income tax (16%) or micro-enterprise tax (depending on revenues). They are obliged to declare and pay VAT (if exceeding the exemption threshold), and transactions must be reported through the RO e-Factura system. ANAF has a heightened interest in these entities due to high margins and the risk of unreported revenues. Costs are structured in accounting by categories: network maintenance, technical losses (the difference between purchased and distributed energy), equipment depreciation, own consumption, and royalties. Losses must be recorded separately in accounting, and the tax base includes revenues from distribution tariffs established by methodologies approved by ANRE. To avoid audit risk, it is recommended to constantly update fiscal records and comply with monthly, quarterly, and annual reporting.
Included Activities
- ✅ Operation of electricity distribution networks
- ✅ Maintenance and repair of distribution networks
- ✅ Construction of distribution networks (lines, transformer stations)
- ✅ Meter reading and billing of distribution services
- ✅ Management of technical and commercial losses in the network
- ✅ Ensuring continuity of electricity supply
Excluded Activities
- ❌ Production of electricity (code 3511)
- ❌ Transport of electricity through the high-voltage network (code 3512)
- ❌ Sale of electricity (code 3514)
- ❌ Installation and repair of electrical equipment in buildings (code 4321)
- ❌ Wired telecommunications activities (code 6110)
Similar or Related CAEN Codes:
From the same category of economic activities:
Întrebări Frecvente
What authorizations are necessary to operate as an electricity distributor in Romania?
To carry out the activity of electricity distribution, it is mandatory to obtain a distribution license issued by ANRE. Additionally, approvals from the transmission system operator (Transelectrica) and compliance with technical norms regarding grid connection are required.
What is the difference between electricity distribution and commercialization?
Distribution (code 3514) refers to the transport of electricity through local networks to the end consumer, while commercialization (sale) of electricity is performed by suppliers. Distribution is the physical transport and management of the grid, while commercialization is the sale of electricity to customers. Separate licenses are required for each activity.