UPDATE (July 23, 2018)
On Friday, July 20th, the Ministry of Public Finance (MFP) withdrew the project for the capping of the natural gas price to 55 lei/MWh starting by 30 June 2021. The decision was confirmed by Minister Eugen Orlando Teodorovici, who stated that “we discuss all this when we all by ready”. Asked when the discussion could take place, Teodorovici said he did not know, and that “it can last for years,” according to Hotnews.ro.
Original article (July 19)
In 100 words, the document published on the website of the Ministry of Finance sets the maximum selling price of natural gas from domestic production at a maximum of 55 lei/MWh, until 30.06.2021, and requires that producers, suppliers and operators the natural gas markets will apply the decision, while the National Energy Regulatory Authority and the Competition Council will monitor compliance.
The idea is wrong in so many ways that a book could be written. The fact that it appears formulated in a draft of governmental decision is the most recent and strongest litmus test of professional quality and of the dominant ideology in the Executive, and also of the good faith that can be identified at the level of the central authorities.
If this draft Government Decision is adopted, it is obvious that there is no point at all to discuss about fiscal and regulatory stability, about incentives for investments and a dialogue between authorities and the economic environment, about energy security, about Romania’s regional role in energy, about the offshore gas at the Black Sea, about natural gas as a crucial transition element towards cleaner energy technologies…
The explanatory note identifies, with no justification:
- a positive macro-economic impact by stopping uncontrolled growth for gas price from domestic production
- the premises of an adequate competitive environment for all natural gas producers in Romania
- the premises of developing local industries based on natural gas consumption
- maintaining a reasonable and affordable price level especially for households
In Section 4, the financial impact on the general state revenues, both short-term (one year), and log-term (over 5-year), is not evaluated in any way.
The effects of the normative act on the legislation in force, with the Chapters detailed in section 5 are ignored under the formula “this normative act does not refer to this subject”. The same formula summarizes the section devoted to the consultations carried out in order to draft the normative act: “this normative act does not refer to this subject”. Finally, the authors of the draft Government Decision, assumed by the Ministry of Public Finance, consider that “it is not the case” to inform the civil society about the necessity for drafting this normative act.
