“The rising final regulated prices are accounted for by an increase of their various components, particularly of gas acquisition costs, as well as of the other costs included in the structure of final prices,” say the representatives of GDF Suez Energy Romania, the biggest gas supplier in Romania.
According to information provided by Romania’s energy watchdog (ANRE), final regulated prices for non-household consumers in 1Q 2014 stood at RON145.7/MWh for GDF’s clients and at RON144.21 for the clients of E.ON Energie Romania.
In March 2009, GDF’s non-household clients paid a final price of RON101.4/MWh and those of E.ON RON100.2/MWh, 44% lower than the prices paid at present.
“Final prices regulated and published by ANRE do not include VAT and other taxes imposed by the Romanian state do not fall under the competence of the ruling authority,” ANRE officials also say.
In the first quarter of 2014, the price of internal gas for industry had reached $232/1,000 cubic meters, according to Petrom data, up 42% against 2009 on the implementation of the deregulation schedule.
According to Energy Department officials, the convergence between internal prices and import ones has already been achieved for non-household consumers, so that large consumers should see no more price hikes related to the initially agreed calendar.
On the other hand, according to ANRE data, for non-household clients connected to the network managed by Distrigaz Sud Retele, part of GDF Suez in Romania, distribution tariffs rose from RON20.2/MWh in 2009 to RON23.86 in 2014. For clients of E.ON Gaz Distributie, tariffs increased from RON18.58/MWh in 2009 to RON26.15 this year.
Thus, while they distributed less gas, the businesses of the two large distributors, E.ON Gaz Distributie, controlled by Germany’s E.ON, and Distrigaz Sud Retele, owned by French-Belgian group GDF Suez, were hedged through an increase in distribution tariffs, even by as much as 40%.
Moreover, the margins reported by these companies, which operate in a regulated regime, can stir the envy of any business.
According to ANRE officials, one of the reasons distribution tariffs rose during the analyzed period is that gas companies’ fixed costs rose amid the declining consumption.
In March 2009, distribution tariffs accounted for around 22% in the final regulated price for end household clients and for around 19% for end non-household clients, ANRE officials add.
Now, distribution tariffs have a 24% weight in household clients’ bills and 17% in non-household clients’ bills. The rest is accounted for by the cost of natural gas and supply tariffs.
For household clients, the final regulated price is now around 7% higher than that of 2009, both for E.ON’s and GDF’s clients. For this category, the increase in distribution tariffs was more moderate in 2009-2014. Thus, in the case of Distrigaz Sud Retele, tariffs for household clients reached RON26.8/MWh from RON23, while in the case of E.ON Distributie tariffs got to RON27.5 in the first quarter of 2014, from RON22.07/MWh in 2009.
Romania last year consumed 12.5 billion cubic meters of gas, down 8% from 2012, and even lower than that of 2009, the most difficult crisis year for the Romanian economy.
(English version by Catalina Apostoiu)