Energy suppliers will be left without financial resources if the capping system continues after April 1, being vulnerable to bankruptcies that would produce chain effects in a market already lacking the cash flow necessary for investments in the network, digitalization and the integration of prosumers.
“We don’t want to support electoral handouts anymore,” say the suppliers, who are asking the authorities to introduce market re-liberalization from April 1 and to amend several laws and legislative projects in order not to create more distortions in the market. For example, the new legislation creates the premises for the state to no longer be responsible for the settlement of amounts after April 1, and the introduction of the tax on special constructions would even affect investments made with non-reimbursable European funds, increasing the burden of co-financing from investors.
Suppliers have so far supported the energy price capping and compensation system from their own funds, suffering losses, and the state’s settlements to them are always late. The Government’s intention to extend the capping system beyond the originally scheduled end date of April 1, until after the presidential elections in May, could bring new imbalances in the market, bankruptcies and withdrawals of some players.
“Extending the capping would mean new losses, a reduction in investments already felt in the market even compared to other countries, and the lack of liquidity in the market creates the obligation to buy at any price,” claim the suppliers.
They admit that the high prices of recent years will create a shock on bills, whenever the market is re-liberalized, but they argue that the Government already has, from the territory, lists of truly vulnerable consumers and could provide aid only to them and not to the entire market, that is, including people with medium and high incomes, as is currently the case.
With the liberalization of the market, a consumer with 50 KWh per month could pay, according to an estimate, about 23-28 lei more for the monthly bill, and one with a consumption of 100 KWh – about 47-56 lei more, compared to the current bills.
“Any liberalization means a shock, but it should ideally take place from April 1, as the markets are also historically lower. Currently our profit margins are in the red and there have been exits from the market. The profit margin on supply is usually 3%, the majority of the turnover being made up of pass-through inputs,” claim the suppliers.
