Romania is once again entering a crucial stage: the return to a liberalized, yet still immature, energy market. Consumers are confronted with rising bills, while suppliers are weighed down by a state that delays payments. “Romania is returning to a free but troubled market. The market needs to become more mature,” said Volker Raffel, CEO of E.ON Romania, in a conversation with Gabriel Avăcăriței on WATTs Next, the new podcast format launched by Energynomics.
For Raffel, the issue is not only one of regulation, but of economic logic. In recent years, price caps have distorted the market and generated a huge deficit. “One mistake of the Romanian state was that it capped prices for everyone, for the rich and for vacation homes. The scheme was very expensive.” Beyond straining the public budget, this policy prevented the development of mature consumer behavior and blocked the emergence of genuine competition.
Today, the stakes are twofold: protecting vulnerable consumers while ensuring liquidity in the wholesale market. Raffel believes that the solutions proposed by the energy ministry go in the right direction, provided they are implemented quickly and consistently. Among them is the introduction of a market maker, designed to make energy offers visible and allow prices to adjust more naturally. “If it would be visible when an offer comes in, the market would regulate itself,” he explains.
Financial pressure is further compounded by the state’s arrears to suppliers, estimated at around 7.8 billion lei. These are amounts not paid by customers, but covered in advance by suppliers while awaiting reimbursement from the budget. The delays — some dating back to 2023 — undermine the financial stability of companies. “And because the payments are late, we pay interest — an additional cost that it is not fair for companies or customers to bear.” For Volker Raffel, the solution cannot be postponed: the state must honor its obligations in order to restore confidence in the market and reduce the artificial pressure on bills.
Looking ahead, the CEO of E.ON Romania ties lower prices to a combination of reforms and investment. The government’s target of cutting costs by 25% can only be met through coordinated action. “We have to have new generation – renewables, Neptun Deep, hydro projects started in the 80s. Every investment helps the average price come down.” From his perspective, the proliferation of prosumers, the spread of dynamic tariffs and the roll-out of smart meters are all signs of a market that is gradually maturing. “In our distribution area we have reached 40% smart meters, we want to reach over 80% in four years. Romania is more advanced than Germany.”
At the core of Raffel’s message lies a single principle: balance. The balance between vulnerable consumers and a functioning free market, between state priorities and company sustainability, between affordable prices and incentives to invest. Without this equilibrium, says Raffel, Romania risks repeating past mistakes. With it, the country has the chance to build a robust energy system — ready both for the green transition and for competing in the European arena.
About “WATTs Next”
“WATTs Next” is the new podcast by Energynomics dedicated to energy leaders, designed to provide a clear understanding of the people shaping the industry, their visions for the future and emerging challenges. Its main goal is to go beyond standardized answers and delve into the personal and professional perspectives of the interlocutor.
The interviews are structured in three essential directions:
- Shaping a personal and professional profile, providing an authentic picture of the career path and values of the interviewed leader.
- Analysis of the most current topics, to understand what’s next in the industry, what the implications are for companies and consumers, and what we should prepare for.
- Explanation of some essential concepts, by debunking myths and clarifying complex notions for a wider audience.