Romania; Gas prices and big consumers vs power market liberalization

19. August 2013. / SEE Energy News

Gas market for clients that are dealing with industrial activities could be realized by 31 December 2015 like it was arranged by International Monetary Fund National energy agency regulator ANRE explained. According to this, the final decision related to prolonging of the date of gas liberalization by 2012 will be adopted during 2014 depending on which prices will be popular at the time on international market.

Adopted measures are in accordance with 123 Law (Law 123/2012 for Electricity and Natural Gas) that predicts liberalization for big industrial consumers to be accomplished by 2014 with a possibility of prolonging if there are significant differences between prices of imported gas and gas produced in the country. Therefore there will be no uncontrolled jumps in the price at the end of a year. Problem occurred: What if we conclude on 1 October that the ratio is too big? So we made an arrangement to follow existing tables but to be précised so liberalization can be over by 31 December 2015”, ANRE confirmed.

The price of imported gas amounts around 390 dollars per thousand cubic meters at the moment and the price of domestic production amounts 196 dollars for thousand cubic meters what means that the ratio is doubled- President of ANRE stressed.

Terms for small consumers related to liberalization were not changed so complete gas market will be liberalized by the end of 2018.

The Law 123/2012 for electricity and natural gas predicts distribution of natural gas at regulated price from general contracts by 31 December 2014 for big consumers with exception of the case that would have significant ratio between purchasing price of domestically produced gas and European import price that can endanger stability of the market and the term will prolonged by 31 December 2015.

Calendar of gas price increase for big industrial consumers predicts price increase that amounts 3% by 1st October 2013 and increases of 4% are predicted to be during next year starting with 1st January, 5% from 1st April, 5 more percents from 1st July and 4% until 1st October 2014.

Source; Serbia Energy See desk/ANRE RO

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