The Government of Romania approved on March 5 an emergency ordinance introducing a new mechanism intended to keep natural gas prices for household consumers stable after the current price cap expires on April 1. Officials described the scheme as a “unique measure at European level,” arguing that it should prevent a price increase for households.

Under the current system, the retail gas price for households is capped at RON 0.31 per kWh. Once this cap expires, the Government plans to introduce a regulated supply mechanism that will remain in place for one year, until additional domestic production is expected to enter the market in 2027, when OMV Petrom and Romgaz start output from the Neptun Deep offshore project in the Black Sea.

The final version of the ordinance has not yet been published, but based on the draft previously circulated by the Ministry of Energy, the scheme introduces an administered pricing mechanism for gas supplied to households starting April 1, 2026.

Under this system, Romanian producers will be required to sell part of their domestic output at a regulated price to cover household consumption, supply thermal power plants, and help fill the country’s gas storage facilities to at least 90% of capacity. The price for these volumes would be set at RON 110 per MWh, slightly below the current regulated level of RON 120 per MWh.

If domestic production is insufficient to meet demand under the scheme, suppliers will be allowed to purchase additional gas on the free market at prevailing market prices.

Energy Minister Bogdan Ivan suggested that Romanian producers should be able to cover the required quantities, although he did not provide detailed estimates.

The final retail price for households will depend on the weighted average cost of the gas purchased under the mechanism. To this cost will be added regulated transmission and distribution tariffs, a regulated supplier margin of RON 15 per MWh, excise duties, and VAT.

As a result, the actual price paid by consumers will depend mainly on two factors: the volume of gas that OMV Petrom and Romgaz can supply under the regulated price of RON 110 per MWh and the amount and price of any additional gas that suppliers may need to import.

The uncertainty comes at a time when European gas prices have risen sharply. Amid tensions in the Middle East, prices at the Dutch TTF benchmark hub have climbed to the equivalent of about RON 250 per MWh, potentially increasing the cost of imported volumes.

(Photo: Spflaum/ Dreamstime)

iulian@romania-insider.com