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Dumbrăveanu: If we regulate the energy price, Romania will be directly convicted at the European Court of Justice

25 January 2022
Electricity
energynomics

A new regulation of the price of energy and gas would mean a violation of European legislation and would lead to a direct conviction of Romania at the European Court of Justice, said on Tuesday Claudiu Dumbrăveanu, general director of the Energy Market Directorate within the National Regulatory Authority for Energy (ANRE).

“All household consumers will benefit from this bill clearing ordinance, but the compensation should not be for everyone. I, for example, do not need to be supported. Vulnerable consumers should be identified,” he said, according to Agerpres.

In his view, this ordinance suspends the retail market and discourages consumers from switching suppliers.

“It also discourages suppliers from managing their procurement and optimizing their operating costs, discourages efficient consumption, and ultimately consumers must participate to this market. Prolonged support for state budget bills will create the illusion of low prices and will lead to the allocation to consumption of some state resources that should be used for development,” Dumbrăveanu claimed.

He believes that during this period, when consumer support measures are being implemented from the state budget, a strategy should be adopted.

Asked what the state should do after March 31, he replied: “I have some ideas about what should not be done. It is a personal opinion and I have arguments. In my opinion, we should not move to regulated prices under any circumstances. Regulated prices form a socialist market model, which worked very well when all markets were regulated.While the rest of the markets are free, having a regulated energy market is anachronic. It is deeply illegal and deeply violates European law and the free trade agreement of goods, because barriers are being created.”

Dumbrăveanu recalled that Romania has already been convicted by a decision of the Court of Justice of the European Union (CJEU) for imposing trade barriers on a producer.

“In addition, there is a case in the CJEU that has not been extinguished, for the measure of giving gas from domestic production with priority to Romanian consumers. It was put to sleep but resurrected by GEO 118, but it is not closed now, so there is no longer a need for infringement, it goes directly to the condemnation of Romania,” the ANRE representative added.

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