Acasă » Oil&Gas » Consumers » ANRE: Gas price convergence was obtained, liberalization calendar no longer necessary

ANRE: Gas price convergence was obtained, liberalization calendar no longer necessary

21 April 2016

The price for imported gas reached the level of those from the domestic production, and the current situation no longer requires the maintenance of a timetable for liberalization of gas prices for households, declared the President of ANRE, Niculae Havrileţ. However, in order to complete the timetable earlier, an amendment of the legislation is necessary, he argued.

“The prices on the international markets have decreased significantly and continue to fall more than the prices set out in the timetable for liberalization. So it is a good time for the early liberalization of the gas market. My opinion is that once we arrive at the convergence of prices, a support of a liberalization timetable where there are higher prices than the market is no longer necessary”, said President Niculae Havrileţ, quoted by Agerpres.

A regulated price higher than the one on the free market can be interpreted as an aid to the economic operators involved in the market segment dedicated to customers for which the price is established by ANRE, also pointed the President of the regulatory authority.

Niculae Havrileț’s position is contradicted by Romgaz representatives, the largest natural gas producer in Romania, with nearly half of the internal volumes extracted from the block that they operate.

“We’re still not prepared to experience this (the early liberalization of gas for households -n.r.). We do not have a competitive environment. The gas market in Romania is a closed one, simply look that there is no one to consume the gas. If we change the law to the circumstances when the situation will be different you have to change it again”, said Vasile Ciolpan, commercial director at Romgaz, quoted by Agerpres.

The President of ANRE noted that the domestic gas prices would not rise if the special tax of 60% on additional revenue from the manufacturers and suppliers of gas would be reformulated, a tax that was imposed in 2013. “We observed that higher taxation now, when prices fall below 72 lei per MWh, encroaches the market. Specifically, the fact is that this tax hinders the decline in prices”, added the ANRE official.

In addition, ANRE official added that the consumer’s interruptible status should be regulated, essentially a consumer that can be disconnected from the power supply in emergency situations, when the supply of households has priority.

“We should support the interruptible type contracts, which have elements that would cover losses (if these consumers are disconnected – e.n.), possibly lower transportation rates. That is done in other countries”, added the President of the authority.

Leave a Reply

Your email address will not be published. Required fields are marked *