The price for natural gas provided to household consumers will drop by an average 3.9 percent starting on Wednesday, according to a release posted late last week on the webpage of the Romanian Regulatory Authority for Energy (ANRE).
“The Regulations Committee of ANRE on Friday, March 27, approved the regulated prices for the natural gas to be supplied to household consumers. Thus, based on the tariff methodologies, starting on April 1, the regulated prices for the natural gas for household consumers will drop by an average 3.9 percent (calculated based on the weight of each of the 39 suppliers delivering natural gas to household consumers on the regulated market),” reads the ANRE release quoted by Agerpres.
According to ANRE, the cut is due to the decrease in costs for the purchase of natural gas to be supplied at a regulated price, and also due to the abolition of costs for the purchase of natural gas from import (ANRE only took into account an import source of 0 percent in April, May and June), the maintaining at the same level of the distribution tariffs by SC E.ON Distributie Romania SA and the drop in distribution tariffs practiced by SC Distrigaz SUD Retele SRL.
“Thus, in the case of household consumers on the regulated market having SC E.ON Energie Romania SA as their supplier, the supply price will grow by some 1.5 percent as of April 1, while for those having SC GDF SUEZ Energy Romania SA as their supplier, the price will drop by approximately 9 percent,” reads the release.
The difference between the two suppliers comes as the result of the partial recovery by the SC E.ON Energie Romania SA of acquisition costs for the natural gas imported over 2008-2012 and the total recovery, respectively, of the same categories of costs by SC GDF SUEZ Energy Romania SA, the maintaining at the same level of distribution tariffs by SC E.ON Distributie Romania and the drop in the distribution tariffs by some 20 percent practiced by SC Distrigaz Sud Retele SRL.
ANRE also mentioned that the liberalization of the domestic market for non-household consumers was completed on December 31, 2014. For this category of customers, ANRE is no longer establishing supply prices, as the prices will be now the result of the competition existing on the market based on the relationship between supply and demand.