Power supply companies in Romania claim state owes them EUR 1 bln in compensations

Romanian power supply companies claim that the state owes them some EUR 1 billion in compensation under the price regulation mechanism, which seriously hinders their ability to purchase electricity under medium-term contracts and keeps them dependent on the prohibitive and volatile spot markets, Profit.ro reported.

Separately, the Federation of Associations of Energy Utilities Companies (ACUE) claims that energy producers avoid selling electricity under medium-term contracts.

The two obstacles prevent the functioning of the market that needs to be set in place before the price capping system is phased off on April 1, 2025. Without such a functioning market, there is no signal or visibility about what the electricity prices will be on the market in the medium term, ACUE argues.

Besides paying on time their dues to energy suppliers, the authorities should put in place a “power release” mechanism similar to that set in place in the past for natural gas: producers would be compelled, under this temporary scheme, to put up for sale packages of energy on the medium-term market.

There are almost no contracts put up for sale by the power producers with the delivery date 2025, which is not boding well for the end-user prices next year, argued the executive director of ACUE, Dana Dărăban.

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