Romania's Energy Ministry wants to suspend gas liberalization

The Energy Ministry has launched in public debate a Government draft resolution for suspending the gas liberalization schedule between July 1, 2016 and March 31, 2017. The draft resolution also establishes a price of RON 60 (EUR 13.2) per MWh for the internal gas production destined for household consumers and thermal power plants. According to the liberalization schedule, the price for domestic gas used by household consumers and thermal power plants should increase by 10% from RON 60 per MWh to RON 66 per MWh starting July 1, this year. Should the Government go through with this new price hike, the imported gas will be 20% cheaper than domestic gas this winter, according to Niculae Havrilet, the president of the National Regulatory Authority for Energy (ANRE). This could bring about a situation where importing gas is more profitable, and Romania’s gas imports would reach over 30% of its consumption. Romania’s gas imports have been very low in recent years due to lower domestic demand, which has been covered by local production. editor@romania-insider.com