State control over final energy prices puts significant pressure on suppliers and creates risks for the whole energy market, said Dana Daraban, Executive Director of the Association of Energy Utilities Companies (ACUE).

“We are still in the phase of contrlled end price for energy and the pressure on suppliers’ cash flow creates a risk for the whole market. State assumption is missing and the state has put pressure on suppliers. Actual payments from the state to suppliers to compensate for price hikes are only at the level of August 2023,” Daraban explained at the Energy Strategy Summit 2024, organized by Energynomics.

The price cap scheme is due to end in March 2025, by which time the state should come up with the right legislative package to help vulnerable consumers. According to Daraban, the main problem remains the lack of flexible action and the lack of decisions based on objective criteria that allow for appropriate interventions in real time.

“As you would expect, any intervention in the free market has adverse effects, and after the way it has been regulated it is no surprise that we will have such effects. We still have a rather cumbersome and bureaucratic scheme. What this scheme lacked was the flexibility to adjust needs according to market developments,” she added.

Dana Daraban also emphasized the importance of the fifth regulatory period for the energy transition in the energy distribution sector, with direct implications on the objectives assumed by Romania. “Doubling the share of renewable energy by 2030 will very much depend on what the energy distribution and transmission systems will look like”, she concluded.

Energy Strategy Summit 2024 was organized by Energynomics, with support from our partners: ABB, ADC, Alive Capital, BayWa r.e, BCR, Best Tools Company, CRC Energy, Distribuție Energie Electrica Romania, DRI, Eaton Electric, Electrica Furnizare, Elektra Renewable Support, EnergoBit, Energo Power, Enevo Group, Evryo, Exim Banca Românească, Hidroelectrica, Horvath, Huawei, Jinko Solar, Keno Energy, MET România Energy, Nofar Energy, Nuclearelectrica, OX2, Photomate, PNE, Polytrade, Renomia Gallagher, Romgaz, Schneider Electric, SolaX Power, TDP Partners, ThinkBlu Solution, Transelectrica, Vertis, WALDEVAR Energy. With the support of Alexandrion Group, Mobexpert.

Strategic partners: ACUE, AFEER, AIIR, AHK România, ARPEE, CNR-CME, CRE, EFdeN, EPG, HENRO, FPPG, PATRES, ROMATOM, RPIA, RWEA, SAMER.