The European Commission decided on Thursday to initiate a procedure for finding non-fulfillment of obligations by sending a letter of formal notice to Romania for limiting the freedom of market participants to set their wholesale prices for electricity and gas, as well as gas exports, shows a press release from the Community Executive.
More specifically, Romania has introduced national measures that require certain electricity producers to contribute all revenues that exceed a certain price threshold to an energy transition fund and oblige gas producers to sell part of their production at fixed prices to certain customers . These national measures are incompatible with Directive (EU) 2019/944 and Regulation (EU) 2019/943 on the internal electricity market, as well as with Directive 2009/73/EC on common rules for the internal market in the natural gas sector, according to Agerpres.
The measures in question limit the freedom of electricity and gas producers to set their wholesale prices in Romania. Therefore, the Commission considers that these measures restrict the fundamental principles of free price formation and free cross-border trade in the wholesale electricity and gas markets.
Romania now has two months to respond and remedy the deficiencies identified by the Commission. If it does not receive a satisfactory answer, the Commission may decide to issue a reasoned opinion.
Also, the Commission decided to continue an open procedure for ascertaining the non-fulfillment of obligations by sending an additional letter of delay to Romania for restricting electricity exports and limiting the freedom of market participants to set their wholesale prices.
The Commission considers that the national measure in question is incompatible with Articles 35 and 36 of the Treaty on the Functioning of the European Union (TFEU), as well as with Directive (EU) 2019/944 and Regulation (EU) 2019/943 on the internal electricity market. The Commission considers that the measure has an effect equivalent to a quantitative export restriction. For the same reasons, it is considered that the measure also violates the Electricity Directive and the Electricity Regulation mentioned above.
In addition, the Commission considers that the measure restricts the fundamental principle of free formation of prices on wholesale electricity markets. Today’s additional letter of delay follows the opening of the default procedure in April 2023.
As a result of the changes in Romanian legislation that did not respond to the Commission’s concerns, but that signaled new aspects, the Commission decided to send an additional letter of delay. Romania now has two months to respond and remedy the deficiencies identified by the Commission. If it does not receive a satisfactory answer, the Commission may decide to issue a reasoned opinion.