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The 12.5% Gas Price Hike Covers Only Part Of Distrigaz Sud’s Costs

Gas distributor Distrigaz Sud, majority-owned by French utility Gaz de France, said Friday that the 12.5% natural gas price hike announced by Romania’s energy watchdog ANRE covers only part of the company’s costs, so that the company will have to adopt a more drastic approach towards bills payment.
The 12.5% Gas Price Hike Covers Only Part Of Distrigaz Sud’s Costs
27 iun. 2008, 11:39, English

Romanian energy watchdog ANRE said Thursday that household gas prices for Distrigaz Sud clients will increase by 12.5% as of July 1.
Distrigaz Sud had previously requested a 22% price hike.

The company said the 12.5% hike might have a negative impact on the security of gas supply during the winter given the imbalance between the acquisition and the sale price, while its financial situation will also be affected, conditioning investments in better services.

Distrigaz Sud said it will offer ANRE all the elements that will lead to a decision on the increase of the natural gas prices in October.

Gas distributor E.ON Gaz Romania, the local unit of Germany’s giant E.ON, also said Thursday the 11.6% hike in household gas prices for its clients announced by ANRE will have a negative impact on the security of gas supply and will not cover the company’s costs and losses.

E.On Gaz had previously requested for a 24% price hike as of July 1.

In its most recent adjustment, the Romanian energy watchdog increased household gas prices by 8.5% Feb. 1, on higher international prices.

ANRE said Thursday household gas prices will no longer increase in the third quarter of the year, still they might hike in October in case distributors justify their request.