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Romanian Econ Min Official Says Energy Watchdog Disfavors State-Owned Power Cos, Consumers

Romanian Energy Watchdog ANRE has not correlated the natural gas and electric power price hikes, and thus favors private companies in the gas sector by authorizing price hikes, to the detriment of state-owned power companies that saw lower price increases, an Economy Ministry official said.
Romanian Econ Min Official Says Energy Watchdog Disfavors State-Owned Power Cos, Consumers
23 ian. 2009, 13:37, English

"While ANRE hiked the gas distributors’ prices in 2007 and 2008 when it considered it right, the same did not happen in the electricity sector. It did not accept the tariffs for the (electricity – e.n.) distribution companies, nor for Transgaz. ANRE should be a fair regulator," Economy Ministry state secretary Tudor Serban said Friday in a press conference.

He said the electricity prices were not hiked similarly with gas prices, which disadvantaged state-owned electricity producers, which posted lower profits.

"Gas and electricity prices were not correlated," Serban said.

Serban added the Economy Ministry and ANRE will render the legislation "more disciplined," as many issues are "let in the favor of Distrigaz Sud and E.ON Gaz, and even Petrom," most of all to the detriment of consumers.

ANRE decided late December that Romanian  natural gas and electricity prices for household consumers will remain the same in the first quarter of 2009, while electricity prices for industrial consumers will hike by around 1.5%.

ANRE also postponed the adjustment of regulated revenue and distribution tariffs for April 1, 2009, when it will also start to recover the cost difference for gas acquisition, without modifying household utility bills.

The latest gas price adjustment for household consumers was made on July 1, when prices rose by an average of 12.5%.