Romanian Execs Ask Govt To Shed Light On ‘08 Utility Price Hikes

“We think the watchdog’s position is unacceptable, as it is considering increasing prices by 8% as of April 1, only a month later from the previous domestic gas price increases of 8.5%,” the businessmen’s association said in a statement.

However, the Romanian energy watchdog approved an 8.5% increase to household gas bills as of February 1, while domestic gas prices rose 5% to 495 lei (EUR1=RON3.7376) per 1,000 cubic meters at the start of February.

End-January, the watchdog said the price hikes were acceptable and estimated prices wouldn’t increase in the second quarter of 2008.

Romanian businessmen warned the government’s utility price policy is confusing and jeopardizes “the stability of the business environment” in Romania by spiking inflation.

“The association urges the government to help stabilize the business environment and ensure the fair play of energy players who have a private monopoly on the market following questionable privatizations,” the statement read.

Last week, the energy watchdog said it would decide whether to hike end-user natural gas prices by the end of March, following unofficial requests from gas distributors Distrigaz Sud and E.ON Gaz Romania.

Distrigaz Sud, a gas distributor majority owned by French Gas de France, said imported natural gas prices should grow 8% to 12% in the second quarter of 2008 to $420 per 1,000 cubic meters from the current $370, on higher international gas and oil prices.

Another gas distributor, E.ON Gaz Romania, also said last week Romanian gas household bills should increase by 10% starting with April 1.