Ponta provides substantial support for industry

The Prime Minister Victor Ponta announced last night in Parliament, a number of measures by which he intends to support large energy and gas consumers to maintain their competitiveness on the European and global markets, but without providing any clear details about the methods. It is clear in terms of energy sector that the Government will exempt the large industry from the payment of 85% of green certificates costs; however, in terms of the gas costs, the message was ambiguous, leaving a great deal of room for speculation.

Mr. Ponta stated: "On April 1, the European Commission will publish the regulations and guidelines by which each member state will be able to provide a reduction scheme by 85% of the renewable energy expenses for the industrial consumers. In terms of gas, the price for household consumers shall rise by 2% starting from April 1, based on the scheme negotiated with the former government and applied by us. Instead, the reference price for those active on the free market will be the one from January 1, 2014".

Our sources on the gas market assert that the prime minister, wants actually to amend the emergency ordinance 7/2013 by which the tax of 60% applies on the gas producers incomes resulted from market liberalisation: "The ordinance requires that the tax applied for the gas quantities sold on the free market to be done at the price stipulated in the liberalisation scheme, that addresses only the regulated market. Practically, the Government forced the producers to sell on the free market without discount, at the prices stipulated in the scheme. By amendment of the ordinance, the reference price of gas to which the 60% tax will be applied for the free market, will be the one negotiated directly between producers and large consumers. Moreover, the economic operators who remained on the regulated market will be able to move on the free market starting from April 1, in order to benefit from a better price".

According to the calculations received from our sources, in the context of an accelerated drop in consumption, the price set freely would remain around the current level $ 230 per thousand of cubic meters for the internal production. The gas imports face a decreasing trend due to a drop in demand in all Europe, and the observance of the scheme would mean that the internal gas price to exceed the quotations average, state the cited sources.

The ANRE directorate (the national energy regulatory authority) stated recently that it attracted the Government attention that it interferes in the free market by the way it disposed the application of the 60% tax on the producers income resulted from liberalisation. According to ANRE, the Government interfered artificially in the free market imposing an artificial price.

• A lower quota for the green energy

The premier Victor Ponta announced yesterday that the Government will approve, on Wednesday, a quota of 11% for the green energy, that will freeze the costs at consumer at the level of 2013. The premier also stated that the Government will put to the issue on Wednesday, the elimination of the cogeneration tax for export, stimulating this way the energy exports of Romania on the regional market.

The large consumers exemption of 85% payment from certificates will be applied pursuant to the European Commission approval, stated, recently, for the newspaper BURSA, the Competition Council president, Bogdan Chiriţoiu. The energy suppliers are waiting for the means to be set by which will be distributed to the rest of the consumers, the certificates that haven't been unsettled by the large industry.