Fines for energy suppliers
The National Energy Regulatory Authority has fined 4 natural gas suppliers for planned tariff increases
Mihai Pelin, 15.10.2021, 13:50
Four Romanian natural gas suppliers (Engie, E.ON
Energie, Restart Energy One and Premier Energy) have been fined for plans to
increase tariffs while under fixed-price contracts. They are now bound to notify
their clients who entered fixed-price contracts, that the price of natural gas
supply will remain unchanged throughout the contractual period.
The National Energy Regulatory Authority (ANRE) found
that these companies have breached their contractual obligations. The suppliers
were fined for having drawn up standard contract offers that failed to specify either
the contract period, or the terms and conditions for unilaterally cancelling
contracts.
The fines amount to some 545,000 euro, and the
Authority promises to continue monitoring the conduct of all suppliers, and in
case new breaches of relevant legislation are found, to address them
accordingly.
In response, two companies announced they would
take the matter to court, and argue they had done nothing wrong and that
international natural gas prices have skyrocketed. They warn that, in case the
measures intended to mitigate the effects on end consumers are not based on
fair and just economic principles, this will have swift and substantial
repercussions on suppliers, and implicitly on their clients, not only in terms
of prices, but also of the safety of supply ahead of the winter season.
In this very difficult context, the respective
companies argue, all stakeholders-authorities and private operators-need to work
together to identify viable, fair and responsible solutions to overcome this
crisis.
With 95% of the bills accounted for by the natural
gas procurement, storage, transport and distribution costs, suppliers only gain 5% of the invoiced amounts, the operators in question also explained. After
the gas prices rose spectacularly, Romanian suppliers have raised tariffs
several times, and these successive price rises and the small profit margin
reflect in consumers’ bills. For
example, this summer the average price was 0.12 leu / Kwh, while at present it
reaches 0.6 leu / Kwh, i.e. 5 times more.
The authorities are considering a ceiling on
energy prices, but this can be done through a state-aid scheme that must be
approved by the European Commission, the line minister Virgil Popescu said. He emphasised
that, if suppliers are not bound to purchase electricity for the smallest price
in the market and if they are not monitored, energy bills will increase
significantly in a matter of months, and it is citizens who will stand to
suffer. (tr. A.M. Popescu)
