natgillin/translations-raw huggingface dataset:
Kommissionens afgørelse af 5. marts 2014 i henhold til artikel 102 i TEUF om bødepålæg efter artikel 7 i Rådets forordning (EF) nr. 1/2003 i sag AT.39984, »Romanian Power Exchange/OPCOM«.
Commission Decision C(2012) 2556 final of 25 April 2012 concerning case SA.33581 (OJ C 395, 20.12.2012, p. 34).
Listen over købere findes i bilag II, tabel 1.
OJ L 115, 9.5.2008, p. 92.
Visse elektricitetsforhandlere (dvs.: Alpiq RomIndustries, EFT, Alro Electrocarbon og Elsid).
Case SA.33623 (OJ C 189, 29.6.2012, p. 3); case SA.33624 (OJ C 268, 5.9.2012, p. 21); case SA.33451 (OJ C 395, 20.12.2012, p. 5) and case SA.33581 (OJ C 395, 20.12.2012, p. 34).
Én elektricitetsforhandler (EFT) og Alro.
Including the preliminary observations submitted by Luxten-Lighting and Euro-Pec before publication of the invitation to provide comments on the opening decision: Luxten-Lighting on 14 August 2012 and Euro-Pec on 13 August 2012.
Gælder kun Alro.
All members of Hidroelectrica's Board of Directors except the General Director of Hidroelectrica and the representative of Fondul Proprietatea (2010), cumulated other functions in various Ministries and were appointed through Orders issued by the Ministry of Economy and Trade, as follows: (i) in 2005-2006: the personal adviser in the cabinet of the Minister of Economy and Trade; the director of cabinet of the Minister for Small and Medium Enterprises; the personal adviser in the cabinet of the Minister in the Ministry of Public Finance and the personal adviser in the General Secretariat of the Government were members of Hidroelectrica's Board of Directors; (ii) in 2007-2008 — situation unknown; (iii) in 2009: the State Secretary in the Ministry of Economy and Trade was also the President of Hidroelectrica's Board of Directors (2009), while another State Secretary in the Ministry of Public Finance and two general directors in the Ministry of Economy and Trade were also members of Hidroelectrica's Board of Directors; (iv) in 2010: three personal advisers in the Ministry of Economy and Trade, a State Secretary in the Ministry of Finance and a General Director in the Ministry of Economy and Trade were members of Hidroelectrica's Board of Directors.
Rådets forordning (EF) nr. 659/1999 af 22. marts 1999 om fastlæggelse af regler for anvendelsen af artikel 108 i traktaten om den Europæiske Unions funktionsmåde (EFT L 83 af 27.3.1999, s. 1).
See International Energy Agency: ‘Projected costs of generating electricity’ 2010 edition, Section 4.2 ‘Country by country data on electricity generating costs’, p. 89.
I modsætning til sagerne om ungarske fordelagtige eltakster — T-80/06 og T-182/09 Budapesti Erőmű mod Kommissionen (ECLI:EU:T:2012:65).
Decision of Tribunal of Bucharest No 22456/3/2012 dated 26 June 2012.
Yderligere oplysninger findes i ANRE Annual Monitoring Report for 2007 og de følgende år.
Decision of Tribunal of Bucharest No 6482 dated 26 June 2013.
Alpiq RomIndustries og Alpiq RomEnergie.
Available in Romanian only at http://www.euroinsol.eu/uploads/Raport%2059%20Hidro%20v11.pdf
Sag C-482/99 Frankrig mod Kommissionen (Stardust Marine) Sml. 2002 I, s. 4397.
Electrica concluded two short-term contracts with Hidroelectrica.
AlpiqRomEnergie, AlpiqRomIndustrie, Electromagnetica, Energy Holding, Electrocarbon og Elsid, ArcelorMittal og Alro.
Contract with Alpiq RomEnergie; two contracts with Electrica; and two contracts with ArcelorMittal.
Energy Holding, elektricitetsforhandler.
Five contracts with electricity traders (Alpiq RomIndustries; Electromagnetica; Energy Holding; Euro-Pec; Luxten-Lighting).
EFT, Electromagnetica, Luxten-Lighting og Energy Holding.
Contracts with EFT (electricity trader) and Alro.
EFT, Luxten-Lighting, Electrocarbon og Elsid.
Contracts with Electrocarbon and Elsid.
Alpiq RomEnergy og Alpiq RomIndustries.
Two contracts with Arcelor Mittal.
Forenede sager T-80/06 og T-182/09, Budapesti Erömü mod Kommissionen, præmis 50-62.
Two contracts with Electrica.
EUT L 157 af 21.6.2005, s. 96.
The contract with Luxten-Lighting (electricity trader) was terminated by Luxten-Lighting by notice dated 15 November 2011, with effect from 1 January 2012.
Se retspraksis i fodnote 39, præmis 69-89.
Contracts with Electrocarbon and Elsid expired on 13 March 2013 and the contract with Electromagnetica (electricity trader) expired on 30 April 2014.
Kommissionens afgørelse 2014/456/EU af 4. februar 2014 om statsstøtte SA.21817 (C 3/07) (ex NN 66/06) gennemført af Spanien — Spanske eltakster: slutkunder (EUT L 205 af 12.7.2014, s. 25), betragtning 113-120.
Addendum 1 to the contract with Electrocarbon provided for a pre-set price (at a fixed amount — the same price) until 28 February 2008; Addendum 2 to the contract with Elsid provided for a pre-set price until 31 December 2007.
Forenede sager T-80/06 og T-182/09, Budapesti Erömü mod Kommissionen, præmis 104-114.
On 1 July 2004 the parties agreed on a table pre-setting a per year fixed price for the period 2006-2013 (i.e.: Addendum 4 to the contract with Electrocarbon and Addendum 5 to the contract with Elsid).
ArcelorMittals bud blev sat på auktion af Hidroelectrica den 23. december 2009, mens Energy Holding trak sit bud tilbage den 22. december 2009.
The prices were subsequently modified on 1 January 2005 with prices pre-set at a fixed amount until 31 December 2007 for Elsid and until 28 February 2008, for Electrocarbon.
De to parallelle bud fra Arelco og Petroped blev trukket tilbage den henholdsvis 20. og 30. december 2010.
As of 2006 the contract prices were readjusted yearly for Electrocarbon and Elsid.
Se bilag I til denne afgørelse.
Court of first instance: Olt Tribunal — File 2800/104/2010 (Electrocarbon) and Dambovita Tribunal — File 4102/120/2010 (Elsid).
Dom i Frankrig mod Kommissionen (Stardust Marine), C-482/99, ECLI:EU:C:2002:294, præmis 51-58.
Article 10(2) of each of the three contracts.
Se fodnote 59.
Article 10(1) of each of the three contracts.
Kommissionens afgørelse (EU) 2015/1877 af 20. april 2015 om de takster, som S.C.
Article 55 paragraph 1 of the Electricity and Gas Law No 123/2012 as further amended by Law No 127/2014.
Hidroelectrica S.A., Rumænien, anvender over for S.C.
KPMG Report, Annex 3 to Memorandum of Energy Holdings dated 27 February 2012, p. 8, source: Hidroelectrica's Annual Reports, 2010 Administrator's Report, KPMG Analysis.
Termoelectrica S.A. og S.C.
KPMG report, Annex 3 to the Memorandum of Energy Holdings dated 27 February 2012, p. 21, source: ANRE.
Electrocentrale Deva S.A. — SA.33475 (12/C) (EUT L 275 af 20.10.2015, s. 46), betragtning 96-100.
Business secret.
BILAG I
Commission Decision of 5 March 2014, in application of Article 102 TFEU imposing fines pursuant to Article 7 of Regulation (EC) No 1/2003 in case AT.39 984 ‘Romanian Power Exchange/OPCOM’.
OVERBLIK OVER KONTRAKTERNE
The dataset used for benchmarking included 114 observations, covering the period 2007-2010.
ELEKTRICITETSFORHANDLERE
The dataset included the following information: the identity of the seller and the buyer, the type of contract, the date of entry into force and the expiry date, as well as the quantity, profile of supply and the weighted average price for each year from 2007 to 2013.
Dato for underskrift og kontraktens varighed (oprindelig periode/efter forlængelse af perioden)
The list of buyers is provided in Annex II, Table 1.
Opsigelsesdato
Certain electricity traders (i.e.: Alpiq RomIndustries, EFT, Alro Electrocarbon and Elsid).
Mængde
One electricity trader (EFT) and Alro.
Pris (RON/MWh)
Only in the case of Alro.
Oprindelig periode: 5 år
Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 108 of the treaty on the functioning of the European Union (OJ L 83, 27.3.1999, p. 1).
Forlængelse (2009): med fem yderligere år (indtil 2018)
Contrary to the Hungarian preferential electricity tariffs cases — T-80/06 and T-182/09 Budapesti Erömü v Commission (ECLI:EU:T:2012:65).
Oprindelig periode: 10 år
For further reference please see the ANRE Annual Monitoring Report for 2007 and for the following years.
Forlængelse (2009): med fem yderligere år (indtil udgangen af 2019)
Alpiq RomIndustries and Alpiq RomEnergie.
Oprindelig mængde: 1 GWh
Case C-482/99 French Republic v Commission (Stardust Marine) [2002] ECR I-4397.
Oprindelig periode: 7 år
Alpiq RomEnergie, Alpiq RomIndustrie, Electromagnetica, Energy Holding, Electrocarbon and Elsid, ArcelorMittal and Alro.
Forlængelse (2010): med fem yderligere år (indtil udgangen af 2015)
Energy Holding, an electricity trader.
Oprindelig mængde (2006): […] GWh
EFT, Electromagnetica, Luxten-Lighting and Energy Holding.
Kontrakt 111: 17.8.2010
EFT, Electromagnetica, Luxten-Lighting and Alro.
Kontrakt 112: 14.9.2010
EFT, Luxten-Lighting, Electrocarbon and Elsid.
Kontrakt 111
Alpiq RomEnergy and Alpiq RomIndustries.
Kontrakt 112
Joined Cases T-80/06 and T-182/09 Budapesti Erömü v European Commission, paragraphs 50 to 62.
2010 til 31.7.2011
OJ L 157, 21.6.2005, p. 96.
Oprindelig mængde: 3692 GWh
Commission Decision 2014/456/EU of 4 February 2014 on State aid No SA.21817 (C 3/07) (ex NN 66/06 implemented by Spain, Spanish Electricity Tariffs: consumers (OJ L 205, 12.7.2014, p. 25), recitals 113 to 120.
første halvår 2008: […] GWh
Joined Cases T-80/06 and T-182/09 Budapesti Erömü v European Commission, paragraphs 104-114.
Dato for underskrift og kontraktens varighed (oprindelig periode/efter evt. forlængelse af perioden)
Commission Decision (EU) 2015/1877 of 20 April 2015 on tariffs charged by S.C.
Forlængelse (2010): med fem yderligere år (indtil 31.1.2018)
Hidroelectrica SA of Romania to S.C.
Løbende indtil udgangen af 2018
Termoelectrica SA and S.C.
VURDERING AF DEN PÅSTÅEDE ØKONOMISKE FORDEL — ØKONOMETRISK ANALYSE
OVERVIEW OF THE CONTRACTS
Kommissionens økonometriske analyse er beregnet til at skabe benchmarkpriser for kontrakter.
Date of signature and contract period (initial period/after extension of period)
I første etape foretages der en regressionsanalyse for at konstruere en benchmarkpris på grundlag af karakteristikaene ved kontrakterne i datasættet (»in-sample-forudsigelse«).
Quantity
I anden etape bruges resultaterne af regressionsanalysen til at forudsige en benchmarkpris for de undersøgte kontrakter under hensyntagen til deres karakteristika (»out-of-sample-forudsigelse«).
Price (RON/MWh)
I regressionsanalysen forklares prisudsvingene mellem kontrakterne i datasættet med henvisning til følgende karakteristika: købte mængder, leverandørernes identitet og dummies for de forskellige år.
3 April 2008
Den økonometriske analyse er baseret på princippet om, at priserne dikteres af flere faktorer, bl.a. af mængder.
Prolongation (2009): by 5 additional years (until 2018)
Hvor kontrakterne i datasættet har visse karakteristika til fælles med de undersøgte kontrakter (bilaterale forhandlinger, kundetilpassede betingelser, mængder over 150 GWh pr. år, mv.), omfatter ingen af kontrakterne i datasættet præcist samme mængde eller blev indgået med samme varighed og med samme ikrafttrædelsesdato som de undersøgte kontrakter — hvilket kan forklare prisforskellene.
2008: […] GWh
Alternativt kunne det konkluderes, at disse to kontrakter ikke umiddelbart kunne sammenlignes med andre kontrakter på markedet.
Initial period: 10 years
Bemærk, at denne empiriske analyse ikke tager sigte på at estimere en årsagssammenhæng mellem priserne og visse eksterne faktorer.
25 March 2004
Hvis man f.eks. vil estimere et kausalt forhold mellem nogle faktorer og priserne, skal risikoen for endogenitet tages i betragtning, for der er risiko for, at selve den forklarende variabel (f.eks. mængderne) også kan blive påvirket af den forklarede variabel (prisen) på grund af manglende variabler eller simultanitetsbias.
Initial period: 7 years
Formålet med den kvantitative øvelse er at »normalisere« priserne i forskellige kontrakter for at gøre dem mere indbyrdes sammenlignelige.
Prolongation (2010): by 5 additional years (until end of 2015)
indeholder dummies for hvert år, hvilket afspejler tidsdimensionen og den eventuelle ændring i markedsvilkårene fra år til år.
Contract 112: 14 September 2010
I den anden etape af den empiriske analyse har Kommissionen identificeret et benchmark for hvert år og derefter set på, hvordan kontrakterne placerer sig i forhold til dette benchmark, for at fastslå, om Hidroelectricas priser var lavere eller højere end den simulerede benchmarkpris.
31 July 2011
Først blev det for hver kontrakt i datasættet beregnet, hvor meget den faktiske pris afveg fra den tilsvarende benchmarkpris, der er fastlagt ved regressionsanalysen og ud fra kontrakternes karakteristika.
31 December 2010
Der var visse grunde, om end konservative, til at vælge MDD-kontrakten, herunder udsving i forhold til det centrale estimat af benchmarkprisen.
[…] GWh from October to December 2010
For det første giver den økonometriske model ikke en forklaring på 100 % af den observerede pris i datasættet, og der blev givet et enkelt estimat af benchmarkprisen inden for et konfidensniveau og med en fejlmargen over eller under estimatet.
21 April 2004
Endelig bruges prisforskellen i forhold til MDD-kontrakten til at adskille kontrakter under benchmarkprisen fra kontrakter med priser over benchmarkprisen:
Initial quantity: […] GWh
Hvis en kontrakt har en observeret pris, der ligger under den tilsvarende benchmarkpris, og prisforskellen er større end i MDD-kontrakten, så er denne kontrakt umiddelbart betragtet ikke markedskonform.
14 January 2004
Tabellen nedenfor viser resultaterne af regressionsanalysen af de udvalgte kontrakter i datasættet.
Initial quantity: 3692 GWh
Tabel 1
26 June 2012
Regressionsanalyse [2]Bemærk: Priserne er angivet i RON/MWh.
2 March 2004
Standardfejl vises i parentes: *** betyder, at koefficienten er statistisk signifikant ved 1 %, ** betyder, at den er statistisk signifikant ved 5 %, og * betyder, at den er statistisk signifikant ved 10 %.
December 2011
Afhængig variabel Gennemsnitspris
ELECTRODES PRODUCERS
Koefficient
28 March 2003
Standardfejl
Prolongation (2004): by 5 additional years (until 31 March 2013)
Årlig mængde (GWh)
31 March 2013
År 2008
Initial quantity: 800 GWh
År 2009
18 December 2002
År 2010
Initial quantity: 280 GWh
0(udeladt)
Date of signature and contract period (initial period/after extension of period (if applicable))
Konstant
8 September 2005
Antal bemærkninger: 109
Prolongation (2010): by 5 additional years (until 31 January 2018)
Tabellerne nedenfor viser resultaterne af den empiriske analyse, der er foretaget på basis af den i tabel 1 beskrevne regressionsanalyse, hvor MDD-kontrakten (»most-downward-diverging«) for hvert år er udvalgt på basis af forskellen (i RON/MWh) mellem den estimerede pris i hver kontrakt og den observerede pris.
Ongoing until end of 2018
Tabel 2-4 viser forskellene mellem priserne i Hidroelectricas kontrakter i hvert af årene (dvs. 2007-2010) i forhold til den simulerede benchmarkpris for alle de undersøgte kontrakter.
23 December 2009
I 2007 havde MDD-kontrakten, altså den kontrakt i datasættet af ikkemistænkelige kontrakter, hvor forskellen mellem den observerede pris og den estimerede pris var størst, en prisafvigelse, der anslås til […] RON/MWh.
Period: 1 year
To af Hidroelectricas kontrakter har en observeret pris, der ligger under den estimerede pris med en prisafvigelse på over […] RON/MWh, nemlig kontrakterne med Electrocarbon and Elsid med en observeret prisforskel på ca. […] RON/MWh (se tabel 2).
22 December 2010
Tabel 2
6 January 2012
Analyse af kontrakter fra 2007
[…] GWh
Bemærk: Priserne er rundet op til nærmeste RON/MWh.
ANNEX II
Kilde: Beregningerne er baseret på regressionsanalysen og data fremsendt af de rumænske myndigheder.
ASSESSMENT OF THE ALLEGED ECONOMIC ADVANTAGE — ECONOMETRIC ANALYSIS
Kundens navn
Rationale and description of the econometric analysis
Leverandørens navn
The econometric analysis undertaken by the Commission is designed to create benchmark prices for contracts.
Observeret pris
These prices result from a regression analysis carried out on the features of the contracts in the dataset.
Benchmarkpris
As a first step, the regression analysis allows a benchmark price to be constructed on the basis of the characteristics of the contracts in the dataset (‘in-sample predictions’).
Prisforskel (i absolutte tal)
As a second step, the results of the regression analysis are used to predict a benchmark price for the contracts investigated, taking into account the characteristics of the contracts (‘out-of-sample predictions’).
På linje med benchmarkindeks
In the regression analysis, the variation in prices among the contracts in the dataset is explained with reference to the following characteristics: quantity purchased, supplier identity and year dummies.
MDD-kontrakter i datasættet
The ‘contract duration’ and ‘buyer off-take profile’ variables are not included since they are not statistically significant.
De undersøgte kontrakter
The econometric analysis rests on the principle that there are a number of drivers of prices, such as quantities.
For 2008 anslås prisforskellen i forhold til MDD-kontrakten til […] RON/MWh, og tre af Hidroelectricas kontrakter har en større prisforskel, nemlig kontrakterne med Luxten-Lighting, Electrocarbon og Elsid med en observeret prisforskel på ca. […] RON/MWh for Luxten-Lighting og […] RON/MWh for Electrobarbon og Elsid (se tabel 3).
It would be misleading to compare the prices across different contracts without considering these drivers.
Tabel 3
In particular, whereas the contracts in the dataset have certain characteristics in common with the contracts under investigation (bilateral negotiation, bespoke conditions, quantities above 150 GWh per year, etc.), no contract in the dataset has exactly the same quantities, or was concluded for the same duration and with the same entry into force, as the contracts under investigation — a factor that may justify price differences.
Analyse af kontrakter fra 2008
For example, two contracts under investigation concern supplies of […] GWh/year (Alro 2007-2010) and […] GWh/year (Energy Holding 2007-2008).
For 2009 anslås MDD-prisforskellen til […] RON/MWh, og igen har tre af Hidroelectricas kontrakter en større prisforskel, nemlig kontrakterne med Luxten-Lighting, Electrocarbon og Elsid med en observeret prisforskel på ca. […] RON/MWh for Luxten-Lighting og […] RON/MWh for Electrobarbon og Elsid (se tabel 4).
In the meantime, the contract with the highest quantity in the dataset out of the 114 price/contract data observed between 2007 and 2010 did not exceed 1400 GWh/year.
Tabel 4
It is doubtful whether a mere comparison of prices for these contracts could allow any valid conclusion to be drawn as to whether the contracts under investigation were in line with market prices.
Analyse af kontrakter fra 2009
Alternatively, it could be concluded that these two contracts could not simply be compared with other market contracts.
For 2010 anslås prisforskellen i forhold til MDD-kontrakten til […] RON/MWh, og to af Hidroelectricas kontrakter har en større prisforskel, nemlig kontrakterne med Electrocarbon og Elsid med en observeret prisforskel på ca. […] RON/MWh (se tabel 5).
The rationale of this quantitative exercise is therefore that, once a number of external factors are taken into account, the prices across different contracts can be better compared.
Tabel 5
In the absence of normalisation, only perfectly identical contracts could be compared meaningfully.
Analyse af kontrakter fra 2010
It should be noted that this empirical exercise is not aimed at estimating a causal relationship between prices and certain external factors.
Følsomhedsanalyse
For example, estimating a causal relationship between certain factors and prices would require the risk of endogeneity to be taken into consideration: that is, the risk that a causal variable (e.g. the quantities) might itself be influenced by the explained variable (e.g. the price), due to omitted variables or simultaneity bias.
I den foregående empiriske analyse blev MDD-kontrakten defineret som den kontrakt i datasættet for et bestemt år, hvor prisforskellen i absolutte tal (RON/MWh) mellem den observerede pris og dens tilsvarende estimerede pris var størst.
The purpose of the quantitative exercise is to ‘normalise’ the prices across different contracts to enable a better comparison to be made between them.
For at kontrollere om resultaterne er holdbare, blev der udført en følsomhedsanalyse.
This normalisation is necessary in the absence of perfectly identical contracts and supply characteristics.
Den samme analyse blev nu udført, hvor MDD-kontrakten blot blev defineret som den kontrakt, hvor forskellen mellem den observerede pris og den estimerede pris var størst, udtrykt som en procentdel af den estimerede pris.
The regression analysis reflects the main features of the bilateral contracts at issue:
I følsomhedsanalysen blev MDD-kontrakten nu defineret som den kontrakt, hvor forskellen mellem den observerede pris og den estimerede pris var størst, udtrykt som en procentdel af den estimerede pris.
including the quantity variable in the regression reflects the fact that prices are in general lower when quantities purchased are higher [1],
Selv om denne analyse ikke kunne påvirke valget af MDD-kontrakt væsentligt, kunne den påvirke de kontrakter, der udvælges.
including the supplier identity reflects the fact that some suppliers have characteristics which would allow them to establish prices differently from others, taking into account that contract supplies from virtually all electricity suppliers active in Romania are included in the dataset,
Resultaterne vises i tabel 6-9 nedenfor.
including year dummies reflects the time dimension and the possible change in market conditions from one year to another.
De bekræfter gyldigheden af resultaterne af hovedanalysen.
As regards the first step of the empirical analysis, the results of the regression analysis of the dataset contracts are reported in Table 1 below.
Tabel 6
As regards the second step of the empirical analysis, the Commission has identified a benchmark for every year and has then tested the position of the contracts relative to this benchmark in order to conclude whether the prices charged by Hidroelectrica were lower or higher than the modelled benchmark price.
Følsomhedsanalyse af kontrakter fra 2007
The following steps describe in detail the methodology used to determine the benchmark:
Prisforskel (i procent)
Firstly, for each contract of the dataset, it was calculated how far the actual price departed from its corresponding benchmark price, calculated on the basis of the regression and of the characteristics of the contract;
Tabel 7
Secondly, the most-downward-diverging contract (‘MDD’) was identified; this was the dataset contract whose observed price departed most from its own corresponding benchmark price (in absolute terms).
Følsomhedsanalyse af kontrakter fra 2008
There were reasons, very conservative as they were, for choosing the MDD contract, involving a range of variation below the central estimated value of the benchmark price.
Tabel 8
Firstly, the econometric model does not fully explain the observed price in the dataset, and the single estimate of the benchmark price was provided with a confidence interval and a margin of error above or below the estimate.
Følsomhedsanalyse af kontrakter fra 2009
Secondly, deviations from a single possible price exist on the real market; the MDD contract, which stems from a contract based on market conditions (see recitals 36 to 38) supplies quantified information about the possible extent of such deviations and provides a market-based range around the calculated benchmark price.
Tabel 9
Thirdly, the price difference in relation to the MDD contract is used to separate contracts below the benchmark price from contracts above this:
En vilkårlig bruttoavance på 10 % blev fratrukket den absolutte værdi af MDD: Den ændrede MDD påvirker ikke konklusionen for de undersøgte kontrakter fra 2008, 2009 og 2010.
The table below presents detailed results from the regression analysis of the sample of contracts from the dataset.
For 2007 fremkom en forskel på 2,5 RON/MWh under den anvendte pris på […] RON/MWh for EFT (dvs. at den benchmarkkompatible pris ville have været […] RON/MWh).
The regression explains 74 % of the variations in the data, which is a relatively good fit.