Romania plans to introduce a special pricing regime for natural gas for residential consumers and district heating producers for at least one year after the market is liberalised on April 1, energy minister Bogdan Ivan announced on February 5.

Ivan said that “a new capping mechanism across the entire natural gas distribution chain will keep tariffs at the current level for residential users and heating producers until at least March 31, 2027," Ziarul Financiar reported.

The announcement comes less than two months before the end of the current price regulation scheme and amid concerns over potential price increases following liberalisation.

The measure may seek to avoid a repeat of the situation in July 2025, when electricity price liberalisation led to sharp increases in household bills. A similar situation in April, when the natural gas price was supposed to be liberalised, would bear major political cost. The planned mechanism draws inspiration from the price control model applied to basic food products, which the National Bank of Romania has previously assessed as having a moderating effect on inflation.

A draft document outlining a broader energy price control mechanism, including electricity, was briefly published by the Ministry of Energy overnight on February 4–5, but was subsequently withdrawn. Ivan later said that the document was not valid.

The mechanism announced on February 5 appears to focus on capping commercial markups applied by companies along the gas supply and distribution chain. However, the minister did not provide detailed explanations on how the mechanism would ensure that end-user prices remain at current regulated levels throughout the proposed period.

The announcement prompted critical reactions from energy sector observers. 

Expert Forum analyst Otilia Nuțu said in a Facebook post that frequent changes to the regulatory framework on short notice undermine market predictability, as reported by Economedia.ro. She noted that energy companies had already planned their strategies for the liberalised market and argued that sudden policy shifts complicate investment and supply decisions. 

Nuțu also cautioned against assumptions that future domestic gas production, including from the Neptun Deep offshore project, would be sufficient to cover Romania’s long-term consumption needs.

The Association for Intelligent Energy also criticised the planned mechanism, stating that similar regulatory interventions in the past have tended to favour certain market players, according to Economedia.ro. The association did not provide a detailed assessment of the mechanism’s design or expected impact.

Ivan did not indicate whether the proposed gas pricing regime would be subject to public consultation or parliamentary approval. 

The Ministry of Energy has also not published an impact assessment detailing the budgetary or market implications of the measure.
Natural gas prices are scheduled to be fully liberalised on April 1, ending the current regulated regime for households and heating producers.

iulian@romania-insider.com

(Photo source: Spflaum/Dreamstime.com)