It is not normal for Eastern Europe to pay much higher prices for energy than Western Europe, as has happened in recent months, and that is why we have asked the European Commission (EC) for fair treatment and a functional energy union, said, on Wednesday, on Facebook, the Minister of Energy, Sebastian Burduja.
“As I promised on September 12, I officially asked the European Commission, together with our counterparts in Greece and Bulgaria, for fair treatment and a functional energy union. It is neither fair nor normal for Eastern Europe to pay much higher prices for energy higher than Western Europe, as has happened repeatedly in recent months. There are two causes: the lack of interconnections in the center of Europe (especially Austria and Slovakia), which means that the cheap energy produced in the West practically stops in Austria and Slovakia, and the additional demand for energy from the Republic of Moldova and Ukraine, which puts additional pressure on prices in our region. I said it clearly and bluntly yesterday: we respect the common European obligations of the single market, but we demand equal rights. Without safe and accessible energy, there can be no development. The well-being of our citizens and the competitiveness of the economy, wages and jobs depend on it. That is why we have tried to keep the prices capped for consumers, with all our efforts, but not we can tolerate the inequities on the European energy market,” said Burduja, quoted by Agerpres.
According to the official, at the request of Romania, Greece and Bulgaria, which has already been accepted by the European Commission, “we will present the situation and ask for measures at the next meeting of the Ministers of Energy, which will take place in Luxembourg, on October 15″, because ” the truth must be told, and Romania will not remain silent in the face of injustices”.
In the Letter sent by the representatives of the three states to the European Commission, it is shown that the lack of cross-border interconnection prevents efficient energy flows in the SEE region (south-eastern Europe) during critical periods, exacerbating price increases, especially in the evening, during peak hours, when the generation from renewable sources are decreasing.
In this context, the development of these interconnections, whether or not they are projects of common interest (PCI), is crucial for alleviating congestion and harmonizing cross-border prices, the cited document states.
“The limited integration of our regional electricity markets with the wider EU system has resulted in price divergences, with disparities often exceeding €50-100/MWh. To restore market cohesion and improve price stability, accelerating infrastructure investment and integrating closer to our EU day-ahead markets Availability of flexible sources of power generation, especially hydropower, is constrained by prolonged drought, which has led to higher dependence of coal and gas-based plants. This situation highlights the urgent need for investments in clean and flexible energy generation capacities,” the Letter emphasizes.
Furthermore, the change in traditional electricity flows, following the conflict in Ukraine, has made the EEA region a net importer, which has put additional pressure on the system and supply, leading to higher prices.
Under these conditions, the three countries propose several short- and long-term measures to resolve the situation.
In the short term, immediate measures should be considered, such as taxation of inframarginal electricity producers and traders’ income. These measures would mitigate the windfall profits obtained by producers who benefit from the current average prices without reflecting the real cost of generation. Revenues generated from such taxes could be redistributed to ease the burden on consumers and stabilize the market in the short term. Furthermore, new products should be developed by operators appropriate to the demand and cooperation between the national regulatory authorities that monitor the market should be strengthened.
“In the long term, we ask the European Commission to prioritize the development of essential interconnection infrastructure in South-East Europe, including projects that are not of common interest. This would alleviate existing gaps in cross-border capacity and facilitate more constant electricity flows In addition, improving market coupling for non-EEA EU countries is necessary to integrate the region more effectively into the EU energy market, would reduce price increases and improve competition,” the document states.