Gas prices increased by 12 per cent as of July 1

In early June, the Romanian Government approved the new liberalization of the acquisition price of domestic production for domestic customers and thermal power producers who provide heat to the population

2015-08-04 23:50:52 - From the Print Edition

According to the new calendar, as of July 1, 2015, the acquisition price of natural gas used only to produce heat in cogeneration plants and heating plants population consumption will be 13.5 Euro (60 RON) / MWh, compared to 12.01 Euro (53.3 RON) / MWh as it is today. The calendar provides an annual increase until 2017, and as of July 1, 2016, the price will be 14.88 Euro (66 RON) / MWh, and since April 2017 of 16.23 Euro (72 RON) / MWh. The price of gas represents 46 per cent of the total amount of an invoice and the rest represents freight rates and other charges. According to hotnews.ro, the purpose of the calendar is to bring the price of gas by 2018 to the current level of the exchange market. If after three years the gas will be more expensive than today on the exchange market, then adjustment would continue until 2021, but at a much slower rate than today.
Even so, the current liberalization schedule has lower prices than those required by the International Monetary Fund (IMF). According to the initial plan agreed with the IMF, a megawatt produced from gas combustion will cost 20.29 Euro (90 RON) in 2018.
Annually, Romania consumes about 12.5 billion cubic meters of gas and produces about 11 billion cubic meters. The difference is imported from Russia, through intermediary companies at higher prices than domestically-produced gas. But according to a law which the European Commission contests, the expensive Russian gas does not reach the population, but is only sold to industrial customers.
The domestic customers represent 24 per cent of domestic natural gas consumption. About 60 per cent are industrial customers who buy gas from the stock market and the remaining 16 per cent are all companies that buy gas at regulated prices.