The Competition Council believes that stricter rules should be introduced for gas suppliers when the market becomes free again after the energy crisis is overcome and the price cap-compensation scheme, which runs until March 2025, is abolished. Thus, the Competition Council forwards a number of recommendations, such as the introduction of a standard contract for the supply of natural gas.

Stricter rules are needed

The deregulation of the natural gas supply market for domestic consumers, which began in the summer of 2020, led to the appearance of attractive offers for Romanian customers both in terms of reduced prices and in terms of the packages offered (combined offers for natural gas, electricity, connected services).

However, the energy crisis has brought about major changes, requiring government intervention (both in the newly liberalized domestic consumer sector and in the competitive industrial consumer sector) and exposing the fragility of suppliers. As a result, there is a need for stricter rules in the market, according to an industry study conducted by the Natural Gas Competition Council.

Recommendations of the Competition Council – there should be a standard contract for the supply of natural gas

The Antimonopoly Authority believes that it is necessary to constantly inform domestic consumers about the main elements of the natural gas sector (for example, about the role of distributors and suppliers, types of supply contracts, risks and benefits that can bring a change of supplier).

Information and promotion efforts carried out at the beginning of liberalization and after the end of the measures applicable to end users in the natural gas market regulated by GEO no. 27/2022 and periodically conduct information campaigns.

In addition to conducting such information campaigns, it is necessary for suppliers to have clearer obligations to inform household consumers of their rights and obligations after signing or, as the case may be, extending contracts. Thus, consumers will receive a summary of the main terms of the contract in a concise and understandable form, which may contain information about the total cost of the contract, promotions applied by the supplier, additional services, as well as the rights and obligations of household consumers. .

Given that in recent years more and more companies have abandoned the process of transferring their customers to suppliers of last resort (FUI), the antitrust authority believes that stricter rules are needed for suppliers to demonstrate that they are able to fulfill their obligations to their customers, regardless of market development.

The Competition Council also believes that there should be a standard contract for the supply of natural gas, which provides for unique clauses and conditions, the only parameter that may differ from one supplier to another is the final price of natural gas. The proposal aims at an obligation to offer a standardized contract by all suppliers, without limiting their freedom to use other contracts in a competitive mode in relations with domestic final consumers.

Another recommendation of the antimonopoly agency concerns the development of personalized offers through the price of natural gas supply for domestic consumers depending on the final purpose for which the gas is purchased, for example, cooking, heating and providing hot water at home or simply providing heat in a holiday home. However, the development and transmission of these personalized offers shall in no way limit the right of suppliers to continue to offer supply-type offers to residential customers, both options shall be applied in parallel.

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