The Employers Federation of Petrol and Gas – FPPG launched the most comprehensive study on the dynamics of the local natural gas market: “The Natural Gas Market in Romania. How do we guarantee the security and competitiveness of the sector?”
The study, conducted by consulting firm Emerton, defines and argues the reasons that hinder the development of a liberalized, fair and balanced market. The report identifies to the creation of a competitive gas market in Romania:
1. The Romanian gas market has very limited interconnections with the natural gas market in the EU
2. Liquidity on the Romanian wholesale market remains low and irregular despite the introduction of centralized market obligations
3. Competition in the households retail market is limited
4. Vulnerable customers are not effectively targeted by the mechanism in place
Starting from the observation that “the major obstacles identified on the Romanian gas market are interdependent”, the study identifies needed in order to mitigate the impact of these obstacles:
1. Deregulation of the wholesale price
2. Encouraging upstream investments
3. Increasing interconnections with the EU gas market
4. Increasing liquidity on the wholesale market and developing a reliable price index
5. Increasing competition in the households retail market by increasing attractiveness
6. Increase protection for vulnerable customers
The essential chapter of the Emerton report is the listing of , as well as the interdependencies and the positive &negative feedbacks between these measures.
At the launch of the study, at the Sustainable Romania conference in Aula Magna – Academy of Economic Studies,, Partner Emerton and the lead author of the study, stressed the importance of defining the vulnerable consumer: “The lack of adequate protection of vulnerable consumers limits political acceptability to link household tariffs to natural gas wholesale prices, which perpetuates the need for regulated and non-transparent tariffs that reduce the attractiveness of the retail market for new players.”
In turn, , FPPG president, stressed that the organization supports natural gas accessibility for Romanian end-users: “This is possible by increasing the households retail market competition and adapting the level of protection afforded to those vulnerable consumers” .