Electricity and Gas market liberalization

The Romanian Member Committee of World Energy Council together with Electrica company – one of the Romanian DSOs - organised on July, 9th, 2020, the one-day conference on “Electricity and Gas Market Liberalization”.

In order to ensure electricity and gas needs to all beneficiaries, vulnerable consumers included, a continuous development of efficient electricity and gas markets and also a strategic overview of the Romanian power system have to be carried out, with a special focus upon: a good understanding of the consumer requirements, greenhouse gas emissions further reduction and the utilisation of the latest  technologies for renewable energy sources and transition fuels. Electricity and gas market liberalization is an EU directive and a main driver of change, introducing competition to all the players in these markets and, therefore, a better balance between demand and supply, in terms of electricity and natural gas selling prices. The EU aims to achieve the European single market, a major challenge for all EU member countries.

The Conference started with an opening speech delivered by Mr. Iulian Iancu, chairman of the WEC Romanian MC, who claimed for the importance of natural gas and electricity market liberalization in Romania.

According to Mr Niculae Havrilet, Secretary of State in the Ministry of Economy, Energy and Business Environment, the main effect of energy market liberalization is that, starting with July the 1st, 2020, there are lower prices of the natural gas.

Romania has to rapidly clarify the situation of the vulnerable consumer, such as the market liberalization project be sustainable, said Mrs Corina Popescu, CEO Electrica company, while Mr.C. Dumbraveanu, director general within the Romanian Energy and Gas Regulator (ANRE), pointed out that both electricity and gas markets currently undergo a liberalization process and that ANRE takes into account all appropriate actions for customers information.

Major contributions were also made in the conference by high representatives of Energy Utilities Association (ACUE), Romanian Gas and Electricity Market Operator (OPCOM) and by independent energy experts.

The topical aspects revealed by the speakers showed that natural gas market liberalization will lead to a truly competitive energy market with reduced price to end-use customers. There is also an urgent need to complete the legislation related to vulnerable customers, while also educating the customers to operate in the market and providing them all needed accurate information.

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