Household gas prices to advance 8 pc in 2014

According to ANRE, the deregulation calendar for this year contains two more price increases.

Household gas prices in Romania will grow by 2 percent from April 1, with two more increases to follow by the year’s end, Chairman of the National Energy Regulatory Authority (ANRE) Niculae Havrilet told a Parliament’s meeting on Monday where an ANRE report on regulated prices and tariffs was unveiled.
Last week, the Energy Department launched a public debate on a Government Decision draft aimed at lowering the rate from 15 to 11.1 percent in 2014.
Also, next month, there will be a 5 percent rise in non-household prices. According to Havrilet, the deregulation calendar for this year contains two more price increases.

‘On July 1, a 5 percent increase in household prices and a 3 percent increase in non-household prices, to be followed on October 1 by a 4 percent increase in non-household prices and a 3 percent rise in household prices,’ said Havrilet.
Romania paid for imported gas last year one billion dollars less than it did in 2012, Havrilet stated. ‘In the electricity sector, deregulation of the non-household domain was done easily because production is larger than consumption, while in the natural gas domain it is more complex, because we have to import. Still, the bill for gas imports was lower by one billion last year, which means a surplus in Romania’s foreign payments balance,’ said the ANRE president. According to information released by the National Institute for Statistics, Romania imported 50 percent less natural gas in 2013 than in 2012. Annually, Romania imports around 20 percent of the gas it consumes.
Regulated energy prices, up by 6 pc by January 1, 2013
By January 1, 2013, regulated electricity prices had gone up by 6 percent nationwide, but six months later, by July 1, they had dropped by 1.3 percent, Emil Calota, vice-president of ANRE, stated in his report presentation.
The main factors leading to these changes, according to Calota, were higher electricity purchase costs as a result of replacing part of the electricity provided by Hidroelectrica through regulated contracts with electricity provided by OMV Petrom and the Energy Complex, an increase in green certificate purchase costs from RON 18/MWh between January and July 2012 to RON 30 between July and December 2012, and an increase in supply costs from RON 4 in the first quarter of 2012 to RON 4.2 per client in the second half of the year. In addition, transport, distribution, system, and market fees have gone up since January 1, 2013, whereas the amount of energy supplied by traditional producers dropped due to increased renewable energy production and Hidroelectrica’s unfavorable prognosis regarding the target amount of energy for 2013. The ANRE report also shows energy prices are higher as a result of higher fuel prices, on the one hand, and higher spot market prices following the force majeure situation Hidroelectrica was faced with during the drought, on the other hand.
Renewable energy production could go up by 60 pc this year
Romania’s electricity production using renewable sources could go up this year from 6.3 TWh last year to 9 or 10 TWh, Calota added. He emphasized that Romania reached this year’s objective assumed before the European Commission, namely to ensure that 24 percent of the energy to be consumed by 2020 stems from renewable sources; consequently, mandatory annual renewable energy quotas will be lower in 2014. In 2014, the green certificates market will mature at the same pace as the renewable electricity market, Calota noted further, pointing out that in 2013 the regulated energy market used 15.3 TWh. The nuclear energy producer covered one third of this amount by supplying 5.4 TWh at RON 142/MWh, the second highest price on the regulated market. The cheapest electricity was produced by Hidroelectrica and sold on the regulated market at RON 125/MWh.
ANRE representatives argued that the latest Deloitte report pointing to a 140 percent increase in Romanian gas prices is unrealistic.

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