ANRE Press Release regarding the enforcement of provisions of GEO 114/2018

In order to fulfill the amendments to the Electricity and Gas Law no. 123/2012, with further amendments and additions, through the provisions of art. 61 of GEO no. 114/2018, the Regulatory Committee of ANRE approved today, 27.02.2019, the Order approving the Methodology for the establishment of gas quantities that producers are required to sell with priority to suppliers in order to ensure the entire consumption demand of household customers from domestic production and/or from underground storage facilities and the Methodology for determining the specific structure of import/domestic production mixture for the gas quantity intended to ensure the consumption of end non-household customers and amending the Network Code for the National Natural Gas Transmission System, approved by ANRE President Order no. 16/2013.

The main purpose of the Order is to regulate the obligations of gas producers and suppliers regarding the sale and purchase price of natural gas from domestic production destined for the consumption of end customers, as well as to establish the specific structure of import/domestic production mixture for the quantity of gas intended for the consumption of non-household end-customers.

Among the main provisions introduced by the order approved today, we mention the following:

1. Methodology for the establishment of gas quantities that producers are required to sell with priority to suppliers in order to ensure the entire consumption demand of household customers from domestic production and/or from underground storage facilities

• establishing the gas quantities so as to ensure the quantities necessary to cover the monthly current consumption from domestic production related to household customers, as well as the quantities necessary to store gas in the storage facilities in order to cover the consumption of household customers in the portfolio in the cold season, entirely from domestic production, for the period 1.04.2019 – 28.02.2022
• covering the difference between current domestic production that each supplier purchases from producers and the consumption demand of household customers during the cold season with natural gas from underground storage facilities that it had the obligation to inject during summer months;
• producers’ obligation to sell and of suppliers to purchase the gas quantities intended to ensure the entire consumption demand of household customers from domestic production at the price of RON 68/MWh, excluding fees and services.

2. Methodology for determining the specific structure of import/domestic production mixture for the gas quantity intended to ensure the consumption of end non-household customers:

• determining the specific structure of import/domestic production mixture for the gas quantity intended to ensure the consumption of end non-household customers during 1.04.2019-28.02.2022
• establishing the elements considered to determine the specific mixture structure;
• establishing the calculation formula through which ANRE determines the estimated gas quantity from domestic production available for non-household customers;
• mentioning the situations where the mixture structure established by ANRE can be changed.

In order to apply the mechanisms provided for in the Order, gas market participants have the obligation to submit the necessary information by 10.03.2019.

The provisions of the order will not lead to an increase in prices for end household customers and ensure transparent and non-discriminatory access of all customers to gas from domestic production at the price of RON 68/MWh, ANRE reported.

Directorate for communication, cooperation and relation with the Parliament

27.02.2019

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