The electricity market in Romania is not functional, with an outdated market design, with an accidental market (PZU, DAM) becoming the main market and a chronic deficit of investments in the generation area. There are irregularities on the electricity market that must be proven by the authorities, claims Răzvan Nicolescu, former Minister of Energy.
“I understand that some people are very afraid of a possible candidacy of mine, but there is no intention in my plans at this moment to run for ANRE,” Nicolescu said, according to Financialintelligence.ro.
“Prices have risen a lot because of Gazprom’s games. The rise began before Putin attacked Ukraine. They caused it by reducing the quantities they usually sold on the spot markets. Gazprom has market analysts who understand very well how the European market works and who sometimes navigate the rules. In the past, natural gas prices were linked to crude oil prices through a formula. This formula no longer applies today. If implemented, with all the increases in the crude oil market, the price of natural gas would be five times lower than it is today. Do you realize how big is the increase in natural gas?”, said Nicolescu.
“Romania is losing hundreds of millions of euros by connecting new localities to natural gas networks, not understanding where this world we live in is going. Also, Romania could have been, today, a regional player on the gas market if the ExxonMobil project had not been stopped. We had the largest profile company in the world with us. I would like to know who decided in our country to delay this project by five or six years. Why did he do it? Why do we import instead of export? Why are we borrowing money when this project could make us billions? Who is politically or legally responsible for this delay?” said the former minister.
Regarding the compensation scheme, Nicolescu said that “it urgently needs to be recalibrated and resized”.
“The state has no way of supporting it as it is. It’s not sustainable. I think this scheme is a big risk to the financial security of the country. Categories that should not be protected and large consumer groups ignored. It also creates cash flow bottlenecks for supply companies as repayments are delayed and creates an environment where some can get rich by inflating the government’s bill. I warned from the beginning that this scheme is not right. I have a clear conscience. I have nothing else to do.”
He also said that the energy market has an outdated market design, with an accidental market (PZU) becoming the main market. “We have a chronic deficit of investments in the generation area”.
As for the potential deals in the market, he said: “There are irregularities that must be proven by the authorities. It was shocking for me to learn that ANRE discovered about 40 irregularities recently and imposed total fines of less than 4 million euros. Do you realize the discrepancy?”.