Gas market, controlled with the stroke of a pen

by Dumitru Chisalita

Reading the document put up for discussion on the obligation to offer natural gas on the centralized markets in Romania, prepared by ANRE, I am surprised to see that, once again, the only ones put against the wall are gas producers, the other suppliers having no obligation, even if it has been repeatedly proven that they have an important role in the artificial increase in gas prices at end-consumers. The second surprise is related to formulas in the document creating the gas quantity that producers must make available on the market, which in my opinion are “slightly” wrong. I believe that this document will not bring a more functional gas market in Romania, but will be another way of favoring certain companies. The Intelligent Energy Association believes there is a need to prepare regulations leading to a transparent, competitive and non-discriminatory market, and presents the principles attached to each obligation provided by law for which ANRE should have issued specific regulations since 2016 (principles submitted to ANRE in a letter of the Association dated December 3, 2017):

1. Principles for ANRE regulations to ensure the conditions of competition on the gas market

• Gas suppliers are required to come up with gas offers in line with elements established under their own Best Practice Guides for Selling Gas in a Competitive, Transparent and Non-Discriminatory Manner.
• Gas suppliers are required to regularly conduct self-assessment reports on how the offers are made and make proof that they are carried out in line with their own Best Practice Guides.
• Suppliers are required to make gas offers in line with demand in the market, at least in terms of quantity packages, guarantee conditions, payment terms etc.
• Suppliers draw up public reports analyzing monthly, quarterly, half-yearly and yearly the requests for offer received, respectively the requests for offer in the market, and adapt their offers to the entire range of requests for offer according to their own algorithm, publicly motivated. 
• Suppliers are required to periodically prepare self-assessment reports and make proof that their offers in the market are in line with the requests for offer in the market.

All procedures must be carried out so that the trade secret is not affected.

2. Principles for ANRE regulations ensuring the conditions of transparent and non-discriminatory access of buyers to the gas quantities offered on the competitive market

• the obligation for each supplier to publish on its own website the Best Practice Guide for Gas Acquisition in a Competitive, Transparent and Non-Discriminatory Manner, containing how the supplier will purchase its gas. These Guides aim to ensure transparency of its gas purchase intentions for multi-annual, annual, half-yearly, quarterly, monthly and daily periods. Best Practice Guides must substantiate each intention established.
• If gas is purchased for population, the Supplier should additionally establish under the Best Practice Guides how gas purchased for population is the one purchased in conditions of minimization of cost of resources allocated and, at the same time, the supplier allows the equal and non-discriminatory treatment of persons participating in the gas procurement procedure, as bidders.
• the obligation for each supplier to publish on its own website the Best Practice Guide for Gas Sale in a Competitive, Transparent and Non-Discriminatory Manner, containing how the supplier will sell its gas. These Guides aim to ensure transparency of its gas sale intentions for multi-annual, annual, half-yearly, quarterly, monthly and daily periods. Best Practice Guides must substantiate each intention established.
• the obligation for each supplier to publish on its own website regular reports to prove how it implemented the elements self-imposed under its own Best Practice Guides for Gas Acquisition/Sale in a Competitive, Transparent and Non-Discriminatory manner in the acquisition and sale of natural gas, while presenting the reasons why it has not fulfilled its objectives.
• the supplier’s obligation to establish Procedures to ensure the conditions of transparent access to gas in its portfolio for any potential customer.
• the supplier’s obligation to implement an electronic public system (allowing the download of xls files) in which to register any request for gas sale addressed to the supplier (date of receiving the request, delivery point, quantity, requested price, date of resolution, how it was resolved).
• the supplier’s obligation to regularly prepare public self-assessment reports to prove how the Procedures that ensure the conditions of transparent access meet the public needs and how its behavior as supplier is in line with the requirements of transparency and non-discrimination.

All procedures must be carried out so that the trade secret is not affected.

3. Principles for the issuance of specific rules on the centralized markets for natural gas, for trading gas in a in a non-discriminatory manner

• the obligation for the centralized market operator to regularly draw up public reports on consistency between demand and supply on the market, at least in terms of quantity packages, guarantee conditions, payment terms, price etc. and issue market recommendations.
• the obligation for the centralized market operator to notify the competent institutions and publicly announce any potential imbalance between demand and supply, as soon as it is identified according to the own Best Practice Guides.
• the obligation for the centralized market operator to promptly answer to requests for the issuance of new instruments, procedures, instructions to ensure the smooth running of the market.

Translation from Romanian by Romaniascout.