The European Commission (EC) is analyzing Romania's new model of the regulated energy market, according to sources within the Commission consulted by G4Media.ro.

Regulating the prices is an accepted principle during this period, according to the sources, who, however, expressed some reservations about the design of the regulation drafted by the Government.

Romania's Executive seeks to maintain the regulated market until 2025. The model, in principle, provisions for the same price (RON 450 or EUR 90 per MWh) paid to energy producers except for the green energy producers (PV, wind) and combined heat and power generation plants and the capped price charged to end-users. The bilateral contracts already signed remain valid.

Minister of energy Virgil Popescu estimates that about a third of the electricity produced in 2023 will be traded under this regulated mechanism.

However, the Government's most recent ordinance (OUG 153/2022, of November 11) amends two other ordinances, out of which one (119/2022, of September 1) is already under debate in Parliament, and specific details remain to be added by the lawmakers. The description provided so far by prime minister Nicolae Ciuca and other Government officials was only general and expressed the ruling coalition's intentions - rather than the text of the ordinance as passed by the Executive.

According to European officials consulted by G4Media.ro, the Commission would decide in a few months whether the Government's decision complies with European legislation or not.

"It depends to what extent and how strict the regulation is, not to generate distortions on the market, not to damage the conditions of storage and solidarity," the sources said, on a note reflecting their concerns about the excessive impact on the consumption behaviour in Romania at the expense of [gas] storage and solidarity [with other consumers in Europe]. 

iulian@romania-insider.com

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