This press release reflects and argues for the concern publicly expressed by the institution of the Romanian Commodity Exchange regarding the harmful effects on the Romanian economy that the recently adopted Regulation 153/2022, aimed at the intention of the Romanian government to create a control mechanism, may have. for the energy crisis from the country.

It is recognized that the energy crisis facing Europe as a whole has as its main goal the war in Ukraine, the policy of non-diversified provision of resources by the main European economies, the sudden rejection of conventional technologies, which is determined by the policy of environmental protection. . In our country, the authorities hypocritically pointed the blame at the mechanisms of the market economy, the same ones that ensured the progress and development of human societies, the mechanisms provided for, moreover, in the Constitution of Romania itself. Ignoring the structural problems of the energy system has increased over time, and the inability of the responsible persons to solve them further hinders the mitigation of the consequences of external influences and is the real reason for the exacerbation of the current crisis period. In particular, in Romania, the Romanian state has not made any new investments in electricity production in the last 32 years, significant natural gas resources remain untouched, and district heating networks still show losses of more than 50%.

In search of solutions, first, through GEO 27/2022, the Romanian governors established a cap and compensation mechanism; due to unpaid or late payments, efforts to support it have been shifted to suppliers. With taxes and excise duties still at the same level, questions have been raised whether the state has not only been under the financial pressure it claims, but has become the main beneficiary of the whole scheme.

In an attempt to correct the dysfunctions with subsequent changes made to GEO 27/2022, the identification of other alleged culprits, this time traders, continued. It was practically possible to eliminate them from the market by setting a margin of 2%, a margin that cannot cover financial costs, personnel costs or cross-border operations. Markets were practically destroyed, and import operations stopped. During this time, on foreign markets, also due to the action of the accused market mechanisms, there has already been a decrease in natural gas prices up to ten times, which could not be used in the new conditions. .

Finally, the latest legislative initiative was aimed at electricity producers, for which a limit of 450 lei/MWh was set, half of the ceiling mentioned in EU Regulation 1854/2022. In the new environment, repeating past mistakes, future investments are difficult to see, and long-term consequences are undesirable. Let us recall the famous GEO 114, released suddenly and without any real reason, the main consequence of which was the cancellation of investments in the Black Sea fields. Apparently, no one took responsibility for the consequences, and now the mistake is repeated.

The system of centralized procurement introduced on this occasion and, strangely enough, as the culmination of its own creativity, the Romanian authorities are dangerously returning us to the period of a centralized economy. The misquoted EU regulation does refer to centralized procurement as justification, but some on a voluntary basis, through competitive procurement at market prices from external sources. However, in its wording, Resolution No. 153/2022 violates national principles and regulatory texts, the country’s Constitution, which states that Romania operates a market economy, European treaties, directives and regulations. Thus, even the EU Regulation 2022/1854, which is referred to and widely quoted in the preamble of the Ordinance, mentions that the measures taken by the Member States should not distort the operation of the wholesale electricity markets and the formation of their prices. Or the wholesale market is now disappearing in Romania, because there will be only one buyer and one seller from the producers – the same one! – to suppliers, and all operations take place at a fixed price.

The regulation also commits a great injustice by directly appointing, without criteria and without a selection process, the buyer and then the only seller in the so-called Romanian electricity “market” in the person of the state market operator. The Romanian Commodity Exchange, in turn, the authorized operator of the energy market, is ignored and discriminated against, and an obviously illegal measure, in addition to moral damage, causes significant material damage to our company.

In the meantime, prices in the EU have been reduced in the short term, mainly due to the introduction of additional sources, the imposition and promotion of energy conservation, the optimization of the mutual exchange of energy (simultaneously with the increase of interconnection capacities), as well as by supporting and encouraging market mechanisms. .

In comparison, in Romania there are always delays, even now the correct identification of truly vulnerable consumers is not carried out, and savings are not encouraged. At the same time, fiscal objects are excluded from any discussion, and criticism of high prices is clearly hypocritical, since the state imposes excise taxes on the same energy carriers for which it acts as a consumer protector. Thus, market mechanisms are destroyed and not supported, imposing even through legislation the practice of direct negotiation of contracts, thus eliminating in an original way and without any motivation transparency and competition in transactions with energy products.

As a result, the market is now even more demoralized, participants do not react and are afraid of unfounded accusations that are spread by all means of communication. The liquidation of market mechanisms, the re-introduction of monopolies only lead to the inhibition of investments, the withdrawal of participants and the reduction of the market to the level of an oligopoly.

With this communique, we want to confirm the need for the company to take the necessary measures, given the current situation, keeping the good measures from the new legislation, but eliminating those that have clearly negative consequences, such as the mentioned, pre-production irreversible consequences in the medium and long term, all because real consultations and dialogue with all categories of market participants.