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October 24, 2021

Price rise for natural gas of 1.5-2.5 pc as of July 1

Increase caution of imported gas share due to Russia-Ukraine crisis.

Prudentially, the National Energy Regulatory (ANRE) have decided to increase the share of imported gas in July, given the conflict between Russia and Ukraine, so that Romania will reach an import of 10 percent of consumption, especially for storing the gas and strengthening the supply’s safety. “This will mean a price rise of 1.5 percent for industrial consumers, who pay regulated prices, and 2.5 percent for household consumers,’ ANRE President, Nicolae Havrilet told on Wednesday the Regional Energy Forum FOREN 2014.
On the other hand, the price of domestically produced gas will not be changed, the ANRE official said. He informed that, according to the calendar for natural gas market deregulation, established in 2012, the price for population should have been increased by 3 percent, but the price rise will be lower, following the change in market conditions. ‘The deregulation calendar provided for a price rise of 10 percent for the entire year, but the increase in the price of the gas supplied to population will not be higher than 7-8 percent,’ added Havrilet. According to the deregulation calendar agreed upon by the Government with the IMF in 2012, the price of gas for household consumers will be fully deregulated on December 31, 2018. For industrial customers, the calendar provides for total deregulation on December 31, 2014, with possibility of extension until December 31, 2015.
According to the schedule the price of natural gas from the domestic production for house consumers will increase from 51.8 RON/MWh to 53.3 RON/MWh. The government resolution 35/2014 published on the Official Gazette 459/June 24, 2014 amends Law 123/2012 of energy and natural gas so that the domestic producers must sell part of the gas amount on the stock exchange as of July 15, 2014. As of March 1, 2015, the suppliers must buy and sell part of the gas amount on the stock exchange. The mandatory amount will be set by the National Energy Regulatory Authority, most likely 25 percent of the production and supply.
The substantiation note of the initial draft resolution indicates that “according to the price liberalization schedule, the current price of the natural gas from domestic production for non-house consumers in the regulated segment (mainly industrial consumers) reached the desired convergence level.” Minister Razvan Nicolescu used to say at the end of May, 2014: “The convergence of the price for natural gas was concluded. We do not need to increase the prices for industry. … There are about 170,000 non-household consumers in Romania.
The draft resolution was saying basically that they give up the liberalization schedule for the regulated non-household consumers and they became eligible but benefited from a transition period by March 1, 2015.
According to the draft resolution 35/2014, failure to trade natural gas on the stock exchange of the producers and suppliers is a felony and can be fined with sums between RON 50,000 and 100,000.
RON 7 M fines in 2013
ANRE issued fines in amount of seven million RON in 2013 for the companies which failed to meet the regulations. “We had 1,300 controls last year. 80 to 90 percent of the irregularities from complaints lodged were true,” said Havrilet. According to him, most complaints are directed against Enel, as the authority issued 386 fines in 2013. ANRE announced two weeks ago that between July 26 and December 31, 2012, the power suppliers billed the green certificates along to the price previously regulated by ANRE, a price that included the purchase of green certificates. Inquired whether the population recovered their losses following the double billing, Havrilet said: “From our calculations, the erroneous billing made by suppliers through green certificates at the moment is recovered 75 to 80 percent and the rest will be recovered by the end of this year.”

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