{"id":7456,"date":"2019-05-20T06:23:03","date_gmt":"2019-05-20T03:23:03","guid":{"rendered":"https:\/\/www.fpe.ro\/?p=7456"},"modified":"2024-11-20T11:38:13","modified_gmt":"2024-11-20T09:38:13","slug":"piata-gazelor-naturale-din-romania-cum-garantam-securitatea-si-competitivitatea-sectorului","status":"publish","type":"post","link":"https:\/\/www.fpe.ro\/en\/piata-gazelor-naturale-din-romania-cum-garantam-securitatea-si-competitivitatea-sectorului\/","title":{"rendered":"The Romanian natural gas market: how to guarantee the security and competitiveness of the sector"},"content":{"rendered":"
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Executive summary <\/strong><\/p>\n

Romania's gas sector is dysfunctional and its evolution towards a liberalized market\u00a0<\/strong>fair and balanced is hampered by major obstacles.<\/strong><\/p>\n

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Despite substantial progress in liberalizing the gas market in recent years and up to<\/p>\n

At the end of 2018, several major obstacles continue to hinder the creation of a mature and attractive gas market in Romania.<\/p>\n

These obstacles have been identified along the entire value chain, from upstream to downstream, and affect both wholesale and retail gas markets.<\/p>\n

On the one hand, low liquidity on the wholesale gas market negatively affects the entire Romanian gas sector by limiting the attractiveness of investments in gas production and creating a weak competitive environment on the retail market.<\/p>\n

On the other hand, in the absence of a robust wholesale market, the mechanisms adopted to cover the cost of gas supply at regulated tariffs lack transparency and predictability.<\/p>\n

These uncertainties severely limit the attractiveness of the segment for potential new entrants. In addition, the lack of an effective scheme to protect vulnerable energy consumers massively undermines the political acceptability of retail deregulation for household customers.<\/p>\n

The recent introduction of the 68 RON\/MWh price cap is expected to exacerbate most\u00a0<\/strong>existing obstacles and generating negative long-term impacts on the Romanian gas sector.<\/strong><\/p>\n

Government Emergency Ordinance No. 114\/2018, adopted by the Romanian Government at the end of 2018 (and amended at the end of March 2019), imposed a cap of RON 68\/MWh on a substantial part of the volumes traded on the retail natural gas market.<\/p>\n

Although such a measure prevents Romanian household consumers from being exposed to possible price increases in the near future, the implementation of GEO 114\/2018 will clearly exacerbate the lack of liquidity on the wholesale gas market and will generate detrimental medium and long-term effects on the security of supply and affordability of end customers.<\/p>\n

In fact, GEO no. 114\/2018 does not remedy the systemic deficiencies on the Romanian natural gas market, but will continue to aggravate the obstacles that prevent an efficient and balanced development of the sector. The mere introduction of a price cap structurally violates the conditions that enable the development of an attractive and competitive market for producers, retailers and consumers.<\/p>\n

To overcome these obstacles, an action plan is proposed to improve the attractiveness and competitiveness of the natural gas sector throughout the value chain.<\/p>\n

The main objectives of the Action Plan are:<\/strong><\/p>\n