After two years of trying to find the best way to limit electricity and gas bills, the search is on to find ways to return to the free market without a shock to people and the economy. This is in conditions where restrictions cost the state budget at least 3.5% of GDP.

“Romania took 15 consumer protection measures, which meant 3% of GDP for private consumers (no households) and 0.5% for non-private consumers,” said Valeriu Binig, director of regulation at Enel Romania, during the SIREN symposium, citing a study conducted by the European Association of Energy Regulators.

In this context, discussions began between experts and authorities regarding the best way to liberalize the market.

“There are voices talking about increasing the limits, and others talking about restoring a competitive market component,” Binig added.

This competitive market component (CPC) existed in people’s accounts in the past, before the liberalization in 2018. The account mainly consisted of a regulated part, which gradually decreased, and an energy part from the free market.

The main thing is to introduce a pricing mechanism in the wholesale market so that the market is liberalized for consumers, the state budget is relieved and unprotected consumers are protected, Binig believes.

In addition, says Claudio Dumbraveanu, director of ANRE, Romania is in the breach because it introduced an energy exchange mechanism last year that obliges producers to sell at a fixed price.

“In my opinion – and now I speak as a specialist, not as a representative of NARE – producers should not be forced to sell at a fixed price, but there should be a market mechanism where producers are encouraged to participate. The question is how they will be able to encourage producers to participate here. The state can consider a tax reduction for those who participate in this market,” said Dumbraveanu.

Liberalization should be carried out gradually, he believes.

“Sudden liberalization … you know very well what happened in January 2021, when everyone said that they did not know anything. There are categories of people who pay 68 bani, 80 bani, to move for one lei is almost a double increase. Who can is it going to hold? We will also have an impact on inflation. We have to be very careful what measures we take,” added Dumbraveanu.

There will be no changes this winter

According to discussions with Government representatives, market liberalization may take place from April next year, after the end of the cold season.

“We don’t expect any changes to the current restrictions this winter,” an industry representative told Hotnews.