Ministry of Energy: Gas market liberalization to enter into force as of 1 April 2017

The liberalization of the price of gas from domestic production will enter into force as of 1 April, according to GEO 64/2016, as there are no technical arguments for Romania to delay this process again, according to a press release of the Ministry of Energy. According to the press release, as a result of parliamentary debate on gas market liberalization as of 1 April 2017, according to GEO 64/2016, as well as a result of the letter of the Committee for Services and Industries of the Chamber of Deputies on delaying the date of entry into force of liberalization, the Ministry of Energy has carried out several discussions at the level of Government, Parliament and European Commission. “We analyzed all opinions and we did not identify enough technical reasons for Romania to postpone again a process that should have been implemented since 2007, the year the country joined the European Union, having in turn a number of risks. First of all, I refer to resumption by the European Commission of the procedure through which the Romanian state could suffer European fines, and losing over EUR 180mln for BRUA interconnector, so necessary for the security of gas supply of Romania”, Energy Minister Toma Petcu stated, quoted in the press release. “Population will be protected until 30 June 2021, through final prices regulated by the National Regulatory Authority for Energy. Another benefit would be that, after 1 April 2017, gas trading will be realized in conditions of economic efficiency, through a transparent acquisition process, which will allow the non-discriminatory process of all market participants”, Petcu also said. Officials of the Ministry of Energy mentioned that as of 1 April strictly the gas acquisition price would be liberalized, which represents only one element in the final price paid by household consumers, together with transmission, distribution, supply and storage tariffs making up the bill to the end-consumer. At the same time, gas market liberalization is necessary to create a competitive, transparent and fair environment, for both operators in this market and consumers”.