The first restructuring stage started in July 1998 by Government Decisions, further to which RENEL the National Electricity Company-CONEL wad setup.The Company was state-owned and operated under the authority of the Ministry of Industry and Trade. CONEL performed the tasks of transmission, system and market operator and had 100% shares in three affiliates:
- SC TERMOELECTRICA SA for electricity and heat generation
- SC HIDROELECTRICA SA for electricity generation
- SC ELECTRICA SA for electricity distribution and supply
Nuclear power - related activities separated from RENEL and were organized as two entities: the National Company "NUCLEARELECTRICA SA" and the National Regie for Nuclear Activities.
The Romanian Electricity and Heat Regulatory Authority (ANRE) was setup by Emergency Ordinance in October 1998.