E.ON Romania Head Blasts Local Mkt's Flawed Competition, Regulation

Romanian gas prices are artificially kept low, and the local electricity and gas markets are not competitive, which is why investors are not really interested in Romania, according to Frank Hajdinjak, CEO of German utilities group E.ON’s Romanian unit.

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The company official went on saying investors cannot be drawn in by a market that isn't free, and which requires EUR10 billion investment on the energy segment.

Furthermore, things have changed over the past two years, and now Romania is in a losing competition with other states as regards the energy projects.

Energy regulator ANRE, in Hajdinjak's view, has lost its political independence and makes decisions based solely on social criteria.

Referring to the local Government's intention to cluster the bulk of state-owned power producers into two national giants, the E.ON official said this action could lead to excessive concentration in the market, since the two companies will destroy competition by engulfing over 90% of the market.

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