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August 4, 2021

Romgaz to be listed in early November

Natural gas imports will tend to drop towards zero in 2015-2016, Gabriel Dumitrascu, head of the Privatization Directorate within the Energy Department, stated.

The Romgaz national natural gas corporation will be listed on the stock exchange early this November, under an administration plan designed to halt further production decline, head of the Privatization Directorate within the Energy Department of the Economy Ministry Gabriel Dumitrascu told a conference on Thursday, Agerpres reports. “There is no ceding now the private initiative, but increasing trust in the private sector. When companies fail to perform as expected we can resort to listing. There are few companies in Europe to match Romgaz in size and indebtedness close to zero,” said Dumitrascu. He added that the listing of Romgaz is not the result of the need for capital, but the need for transparency and the consequences will be seen very soon.
Also, Gabriel Dumitrascu mentioned that after the listing of Romgaz three more companies will follow suit, including Electrica, the electricity corporation in which the Romanian government will remain a minority shareholder, with a 40-percent stake.
Likewise, Romanian investors will invest EUR 200-220 M in the offer for the sale on the stock market of 15 per cent of the shares of the Romgaz Medias natural gas producer, a sale that will take place in November on the Bucharest Stock Exchange (BVB), Gabriel Dumitrascu added during the conference. “The Romanian market is not willing to invest a lot. (…) We opted for bundling the shares in deposit certificates (GDR) in London,” Dumitrascu added.
Asked why Romgaz did not take measures in order to put a stop to the decline in production, Dumitrascu said he has no answer to that. “I cannot put myself in the shoes of those who held various positions within Romgaz, who accepted this reality. Investments were made, it’s true that they weren’t finalized, maybe there were inadequate investments too,” Dumitrascu said. He considers that in 2015-2016 natural gas imports will tend to drop towards zero. “The priority for us is not to cede initiative within these companies. When the companies will perform as we want them to then we will cede initiative within them,” he added.
ANRE: Domestic consumers will pay the market price for 20 pc of their electricity bill
The population will pay the free market price for 20 percent of their total consumption of electricity, as of January 1, 2014, while the rest of 80 percent will be charged based on the regulated price, Niculae Havrilet, the head of the National Regulatory Authority in the Energy Field (ANRE) told AGERPRES.
Starting on July 1, 2013, the population will pay the free market price for 10 percent of their electricity consumption, following on their bill to appear a new consumption category, the active competitive energy category respectively, to show the quantity of energy taken from the free market and its corresponding price. According to Havrilet, next year there will be accomplished two new stages of this process. “On January 1, 2014, domestic consumers will pay the free market price for 20 percent of their electricity consumption, following that beginning with July 1, 2014, the percentage to increase up to 30 percent. However, this doesn’t necessarily mean an increase in the final price, which depends on the evolution of the price on the free market. For instance, right now, the price on the free market is just a little higher than the price on the regulated market,” explained the head of ANRE.
New energy strategy to answer corporate and consumer interests
Gabriel Dumitrascu also stated that the future national energy strategy has to answer corporate and household consumer interests rather than the interests of the state. He said that the current energy strategy devised four years ago by the government is already outdated and a new “preemptive” strategy adapted to the new economic conditions is needed.
Likewise, Razvan Nicolescu, public affairs director within OMV Petrom, listed among the future energy strategy’s priorities the improvement of energy efficiency, energy security and a better management for state-owned companies. “Romania faces a paradox. We are on 27th place in a 28-nation table in what concerns the energy consumed to produce one unit of GDP. Meaning we consume a lot of energy in order to produce a unit of GDP, against the backdrop in which the energy prices paid by Romanian consumers are among the lowest in the EU. When it comes to natural gas only two countries fare better than we do in what concerns the price of natural gas adjusted to the population’s purchasing power,” Nicolescu said.

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