The ordinance on measures applicable to final customers in the electricity and gas market brings some improvements, but it is still “a little unfair” to suppliers, according to Marius Chiriac, General Manager of Enel Energie and Enel Energie Muntenia.

“The ordinance (Ordinance on the measures applicable to final customers in the electricity and natural gas market between April 1, 2022 and March 31, 2023) brings some improvements, but I would still say that it is a bit unfair to suppliers and in the end the ordinance brings a re-regulation of the market. We are a supplier that has been investing heavily in the free market for over 10 years …. Over 80% of our customers are in the free market and in this context they are protected and this is a good thing, but the scheme is abit unfair. In the end, the measures taken are still quite different from the measures in the European Commission’s toolbox. The European Commission came up with a set of rules, put them on paper, made recommendations to the states. Unfortunately, Romania chose to put all this burden on energy suppliers,” Marius Chiriac said, according to Agerpres.

Chiriac mentioned that there were bigger problems on the ordinance applied in November-March, the law comes with some clarifications, some improvements, but from the point of view of the cash flow, the energy suppliers will carry the burden. He explained that the energy is traded in the market at 1,300 lei per MWh. The suppliers will have to apply a basket to the customers and will go to recover the money difference from the state. According to the Enel Energie representative, these are amounts of about 500 – 700 lei per MWh that will have to be borne by the suppliers for a period of time. These amounts will increase especially in the second half of the year.

“As the European Commission recommends, we should normally look at the consumer and his needs. And unfortunately the law does not necessarily make a distinction. The Commission’s recommendations are very clear, let’s look at our consumers’ income. Unfortunately, by applying a system based on consumption, this system risks being a bit unfair,” said Marius Chiriac.

Also, another thing that should be rethought in the next period is related to the inclusion in the scheme of all business customers. These, with small exceptions, will be capped at 1 lei per KWh/1,000 lei per MWh. Customers, especially those with low voltage, will end up paying a price of 400 lei per MWh per year. In these conditions, the Enel Energie representative considers that it is necessary to analyze whether all business clients in the country deserve to be included or not and whether the amounts granted to them put pressure on the sustainability of the entire scheme.

At the end of last week, the government approved the Emergency Ordinance on capping electricity and gas prices for a year, for both domestic and industrial consumers, which was published in the Official Gazette on Tuesday morning.