Large energy and gas consumers have convinced Ponta

• The Government would like to give up the gas price rise The Prime Minister Victor Ponta has been analyzing the possibility of giving up the semestral rise schedule of gas price for the industrial consumers, according to some market sources. Thus, in order to support the industry, Government would choose the option of the gas price being set freely on the market, depending on supply and demand, without the authorities to impose growth percentages agreed with the international financial organisms, according to our sources.

"Among the accelerated drop of the consumption, the price set freely would remain around the current level of 230 dollars per a thousand of cubic meters for the internal production. The gas imports face a decreasing trend due to the drop in demand all over Europe, and the schedule observance would mean that the internal gas price to exceed the average quotations" stated our sources.

The large gas consumers, that have already being active on the free market, complain about the fact that their price rises in accordance with the regulated one. Our sources explained: "The Emergency Ordinance 7/2013 that forces the free gas market to function according to the regulated one is to be blamed. The Government applies a tax of 60% for the gas producers, and this tax is in accordance with the liberalization scheme, not with the freely negotiated prices".

Victor Ponta stated during the government meeting on Wednesday: "I held a discussion with all the parties involved, so as to present on Monday in Parliament, to the Chamber of Deputies, and on Wednesday during the government meeting, to adopt all the necessary regulatory documents in order to draw up a stimulus package in the energy area for industry, for national producers. The issue related to the energy law in terms of the green certificates has been solved. As a matter of fact, the Constitutional Court has already rejected the president intimation. Traian Băsescu looked as if he did not understand: the concern was not dropping the energy price, but not double the prices, and thank God, they didn't double. On Monday we shall also present and on Wednesday adopt the other modifications for the gas package, so as to have in 2014 for all the large producers, for the large and small companies, an energy package at prices that keeps competitive and in this positive trend that the Romanian economy recorded in 2013, and in 2014 even a little better than in 2013".

• Frank Hajdinjak, E.ON: "Accelerated liberalization, a real disaster for industry"

Frank Hajdinjak, the managing director of E.ON Romania, stated yesterday in Parliament: "Pursuant to the discussions held in January with FMI (the International Monetary Fund), debates were held about an accelerated liberalization on the gas market. This can be a disaster for economy and industry. It has already been recorded, in January, a 20% contraction of the consumption. Many companies have been disappearing, the gas price from the internal production has reached the one of imports, and the people prefer wood heating. It is obvious that we have a problem with the sustainability level of the prices".

He explained that the liberalization for industry shouldn't have been done in a period of only two years and considered that the authorities must take into account the extension of liberalization.

Răzvan Nicolescu, delegated minister for energy, stated yesterday in his turn: "I shall do my best to find solutions for the large energy consumers, that face competitiveness issues. We shall do our best, in compliance with the observance of the Romanian statute as European Union member".

• Calculations for the exemption of the consumers from the green certificates payment

Our authorities make calculations to see how thay can exempt from green certificates payment the large consumers, especially since there is a EU regulations draft in this sense, according to our sources. The draft indicates a set of rules by which the industries with a relocation risk can be exempted from the payment of maximum 85% of the green certificates up to 2017.

The Department for Energy launched yesterday in public debate a Draft Government Decision by which, the electrical energy quota for this year produced from renewable energy sources that benefits from the promotion system through green certificates is of 11.1% of the final electrical energy gross consumption. At an initial stage, a 15% quota was stipulated for this year.

The following has been shown in the substantiation note related to the drop of the quota: "At the level of 2013, compared to 2012, we can see an increase of the installed power in the green energy production plants, accredited by ANRE (the National Energy Regulatory Authority) for the promotion system, of 2000 MW, from 2300 MW to 4300 MW. The level provided in the National Action Plan in Energy Sector from Renewable Sources (PNAER) for the end of 2013 is about 3.315 MW. The evolution impact in the final consumer bill for the renewable energy, during 2013, was one of an accelerated increase, from 30 lei/MWh to 53 lei/MWh at the beginning of the year. Pursuant to the measures taken under GEO no.57/2013 (related to the putting off of an important part of the green certificate transaction), the contribution value in 2013 dropped to 35 lei/MWh".

The document also specifies that ANRE (the energy market regulator) estimates about 6000 MW installed at the end of 2014, compared to 3000 MW provided by PNAER. This rise would lead to a cost with clean energy of 83 lei/MWh for the final consumers, according to the cited source.

The Romanian Investors Council (CIR) issued a press release yesterday showing that: "We consider the announcement made by the Prime Minister Victor Ponta, that he shall present, on Monday, in the plenary of the Chamber of Deputies, a package of measures in the energy sector, in order to allow the keeping of some competitive prices for industrial producers, as a favourable answer to our requests. We appreciate, on these lines, the Government decision to support the Romanian industry and we assure the authorities of our support and consultancy".

According to CIR the current calendar of the gas price rise is aggressive and shall lead to the loss of about 525.000 jobs in the national economy (the rise of unemployment by 4 percentage points) and the annual disappearance of about EUR 6.4 billion from the Romanian Gross Domestic Product (equivalent to an annual drop of 5% of GDP). CIR is asking for a period of eight years to complete the gas price liberalization.