Gas company E.ON Romania, which recently asked for a 10 percent increase in gas distribution tariffs, warned that it plans to withdraw form the renewable energy market in Romania should the recent decision to change the legislation in this area be followed through. The company has wind energy projects in the region of Moldova in Romania.

The Romanian Government recently announced its plan to decrease its support for green energy, with a first measure being a postponement of state incentives for green energy companies. Companies in the sector argue that Romania stands to lose around EUR 4 billion by decreasing state support for the booming sector. Romania's support system for green energy requires individuals to pay a fee for green energy even if they don't use this kind of energy. The Romanian Government previously said it plans to strike off the co-generation tax from the customers' energy bills.

In the meantime, E.ON is also pushing for higher natural gas prices, saying a 10 percent increase in the market regulated tariffs would only be reflected in a 3 percent increase in the bills customers pay.

The first increase in natural gas prices for individual consumers set for this year will be enforced on June 1, when the regulated price will be up by 8 percent, and a second is scheduled for October 1, a further 2 percent increase.

editor@romania-insider.com