Suppliers Displeased With High Energy Prices Auctioned For 2010

The energy production facilities in Turceni and Rovinari have announced new auctions to sell energy with delivery 2010, with starting prices of 204 RON/MWh and, respectively, 207 RON/MWh. The suppliers believe these prices are too high, considering the current economic circumstances and the average price on regional markets.

Ion Lungu, President of the Associated Electric Energy Suppliers in Romania (AFEER), explained for BURSA: "These prices are at least 10-15 per cent above the contracts signed this year for 2010, as well as above the regional average. Nothing has happened on the market to justify the increase in price. Neither an increase in demand, nor an increase in exports. The overall energy consumption has stabilized for the past few months at a level approximately 10-12 per cent below 2008. Prices, too, have decreased a lot since last year."

He added that the regional average price for long-term contracts was around 180 MWh. In his opinion, the energy producers are wrong to set the starting price of the auction having in mind the average price on the spot market in the previous few days, which was in this case a bit over 200 RON/MWh.

"I hope that no contract will be signed for this price level. The crisis has had a strong impact on the economy and the consumers have different expectations for the next year. So far, all the offers with a price of more than 200 RON/MWh have remained unclaimed," Lungu added.

The energy production facility in Turceni has announced new auctions to sell energy via the Centralized Market for Bilateral Contracts (PCCB) managed by OPCOM. The auctions will take place on 26 October. The company is planning to sell four packages of 131,400 MWh each, with delivery in 2010. The starting price of the auctions is 207 RON/MWh.

The energy production facility in Rovinari will also organize auctions on PCCB, on 28-29 October. The State-run company is planning to sell two packages of 131,400 MWh and, respectively 87,600 MWh for a starting price of 205 MWh. An additional package of 43,800 MWh starts from 206 MWh, whereas two packages, of 219,000 MWh and 175,200 MWh, are available for a starting price of 204 RON/MWh. The delivery timeframe for all packages is 2010.

Privately held energy supplier Rudnap SRL will organise three tenders on 27 October to purchase three packages of 69,600 MWh for a maximum of 155 RON/MWh and delivery between 4 November and 31 December 2009.