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Wirom Romania Calls For 25% Consumer Gas Price Hike In ’08

Romania should increase natural gas prices by 25% this year, as they are too low and bring losses to gas suppliers, but the authorities are not willing to take this step because this is an electoral year, Wirom Gas Romania said Tuesday.
10 iun. 2008, 15:40, English

Wirom registers losses when selling natural gas in Romania, because of the low prices established by the country’s energy watchdog, Wirom’s executive financial manager Illo Vogelhaupt said.

Gas distributors E.ON Gaz Romania, the local unit of Germany’s giant E.ON, and Distrigaz Sud, majority-owned by French utility Gaz de France, have repeatedly urged regulators to raise gas prices by up to 20% to cover losses from soaring import prices.

"It will be difficult for us to find investors, due to the lower profitability in the gas supply field. Romania competes with other countries, and investors might not find the country attractive if the regulations are not advantageous," Vogelhaupt said.

Wirom is majority owned by WIEE ZUG, the main importer of Russian natural gas in Romania, with a 51% stake, followed by local gas distributor Distrigaz Sud, with a 49% stake. WIEE ZUG is owned by Russian natural gas monopoly Gazprom and Germany’s Wintershall.

In 2007, Wirom sold 30 million cubic meters of natural gas and reported 25 million lei (EUR1= RON3.6658) in turnover.