Loading ...Distrigaz believes a 22% increase in the gas prices is necessary because of rising global energy prices, reads a press release issued by Distrigaz.
According to Distrigaz officials, the costs currently set by the National Energy Regulatory Authority (ANRE) does not cover the spending of the company and no company can survive for long when selling products for less than the acquisition prices.
"This is a moment when energy is expensive at global levels. The same as in the case of oil, which has surged to record highs of late, the wholesale gas prices have also surged over the past two months in Europe. That is why most of the important European energy companies have hiked prices by 15-25% or announced they will be doing so in the near future," reads the release.
Approximately 67% of the natural gas used in Romania, the release reads, is bought from domestic production and 33% is imported, and the increase in the price for one barrel of oil entails a rise in the prices for imported gas.
"The reference price quoted by ANRE when it approved the price rises early this year was $370 per 1,000 cubic metres for the first quarter. Because of the surges in the oil prices, the reference prices in the second quarter of the year is exceeding $420 per 1,000 cubic metres, because the final price also includes transmission and storing fees, which also went up in the same period," says the release.
Distrigaz Sud’s request for the approval of the price rise came one day after E.ON Gaz, another gas distribution utility, requested for approval of a 24-percent rise in the gas prices.
"This rise will suffice for the entire year. If ANRE does not increase the regulated prices, we will send a letter to the European Commission to complain that the market principles are not observed in Romania," says E.ON Gaz Romania Director General Frank Hajdinjak.
ANRE Gas Prices Director Gabriel Sarbu has recently stated that ANRE was looking into how much the gas prices could rise.
Economy and Finance Minister Varujan Vosganian said on Sunday that the final gas prices to be charged as from July 1 should take into account user’s affordability, but the energy companies should not operate on a loss either.
"We will try to make so that the system will absorb much of the shock generated by the high prices on the world gas markets. The companies should not suffer, but users should not suffer either. There are extra-budgetary solidarity mechanisms that can be used to protect certain categories of energy users," said Vosganian.
Sources with the ANRE Regulatory Board on Friday told Rompres that the prices for imported gas could reach and even exceed $470 per 1,000 cubic metres as from July 1, as mentioned by gas distributors in their request for approval of rises in regulated prices.
Romania is currently importing one third of the need to meet its domestic consumption from Russia.
The last price rise to date was performed on February 1, when the prices went up 8.5% for household users. The rise was 5% for the gas of internal production and 17% for imported gas.
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