Romania's Competition Council warns capping electricity, gas prices pose infringement risks

A letter reportedly sent by Romania’s Competition Council to the Government on December 20, before the enactment of the emergency ordinance (OUG) 114/2018, warned of the risks prompted by the energy price regulation, particularly the natural gas cap, according to Economica.net. Moreover, the competition body suggested alternative solutions.

The European Commission (EC) will have relevant grounds to initiate infringement procedures against Romania, particularly in the case of the natural gas prices, the Competition Council warned. Gas suppliers will discriminate non-residential customers (only those supplied directly by local producers will benefit of capped price), and the bill will encourage exports of natural gas and seriously alter the functioning of the gas market, the letter reads.

“At the same time, we should consider whether the goal pursued by the OUG project [namely protecting households] can be achieved by less intrusive measures from a competitive point of view, for example by providing subsidies to low-income households,” the Competition Council also said.

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