Romania’s market regulator green lights natural gas cap

Romania's National Regulatory Authority for Energy - ANRE approved on February 27 the methodology (secondary legislation) on regulating the gas price according to the Government's emergency ordinance (OUG) 114/2018.

ANRE said the new methodology will not lead to higher prices for the population and will secure transparent and non-discriminatory access for all domestic customers to the natural gas derived from domestic production at the rate of RON 68 (EUR 14.3) per MWh.

The provisions of OUG 114 on the natural gas price is likely to trigger infringement procedures from the European Commission, the local oil companies’ association ROPEPCA warned quoting a Deloitte report on the topic. Capping gas prices will also cost the country’s budget some RON 2.3 billion (EUR 500 million) per year.

The methodology passed by ANRE stipulates the obligation of domestic natural gas producers to deliver the necessary quantities to companies that supply residential consumers. It also specifies the procedures for establishing the structure of the basked of domestic gas (what is left after residential consumers are supplied) and imported natural gas, delivered to non-residential consumers.

The natural gas prices will be regulated starting April 2019 until February 2020.

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