EnergMin:Certain flexibility for Romania to continue vulnerable consumer support despite Brussels' push for liberalisation

He also advised care with the price of energy for non-household consumers if Romania really seeks to be competitive.

"From my point of view, we certainly need a much better definition of the vulnerable consumer, to target support primarily based on social and economic analyses and not based on the level of consumption, as so far - and we should also take care of the energy price for non-household consumers as well, because we are talking about the competitiveness of the Romanian economy. We already see that the Romanian industry, the Romanian economy that relies on electricity and gas, is struggling. Of course, this does not concern Romania alone, it's a Europe-wide situation, also acknowledged in the Draghi report," Burduja said.

The Energy minister also spoke about the major discrepancies in energy prices between Eastern and Western Europe.

"You cannot battle the United States or China when you have three times higher energy prices. Moreover, having seen these major discrepancies between Eastern and Western Europe, the European Commission did a few things - you may remember this was a joint initiative of Romania, Bulgaria and Greece. On the one hand, it sent an expert mission to Bucharest. They came last week and we discussed hands-on on the data we have, with all available arguments, and the result is that Romania, and I believe Bulgaria and Greece too, will enjoy a certain flexibility to accommodate the decoupled energy market, an objective situation the European Commission and the other member states also acknowledge, caused by the lack of interconnections, especially in Central Europe, in the region of Austria, Slovakia, Austria, Hungary," the minister added.

He expressed his hope that Romania will enjoy a certain flexibility to also continue support measures. "Certainly, all EU member states can take measures to protect vulnerable consumers, this will definitely happen after April 1, we'll see if we extend this support to other categories too," Burduja also said.

Asked what the scenario is for the capping scheme's extension in 2025, the official said that all possibilities are on the table.

"We do not rule out any working scenario, precisely because it's a dynamic context, there are variables that we do not control. For instance, we do not know if the Russian gas will transit Ukraine from January. A solution has not been found so far. We expect it to come by the end of this year. (...) All scenarios are on the table and from all the discussions we've had, there is also the necessary flexibility in Brussels, even if Romania has been in an early infringement procedure since 2022 for not having a fully liberalized energy market. So, Brussels is pushing towards an at least phased liberalization. Considering what is happening in the region and the prices on the spot market, especially in Eastern Europe, I am convinced that we will find understanding and it is only up to us to find the best formula and support it with solid arguments," Burduja concluded.

Support for vulnerable consumers should be granted based on social and economic surveys, and not on consumption amounts, as the case has been until now, Energy Minister Sebastian Burduja on Thursday told the ZF Energie 2024 conference.

He also advised care with the price of energy for non-household consumers if Romania really seeks to be competitive.

"From my point of view, we certainly need a much better definition of the vulnerable consumer, to target support primarily based on social and economic analyses and not based on the level of consumption, as so far - and we should also take care of the energy price for non-household consumers as well, because we are talking about the competitiveness of the Romanian economy. We already see that the Romanian industry, the Romanian economy that relies on electricity and gas, is struggling. Of course, this does not concern Romania alone, it's a Europe-wide situation, also acknowledged in the Draghi report," Burduja said.

The Energy minister also spoke about the major discrepancies in energy prices between Eastern and Western Europe.

"You cannot battle the United States or China when you have three times higher energy prices. Moreover, having seen these major discrepancies between Eastern and Western Europe, the European Commission did a few things - you may remember this was a joint initiative of Romania, Bulgaria and Greece. On the one hand, it sent an expert mission to Bucharest. They came last week and we discussed hands-on on the data we have, with all available arguments, and the result is that Romania, and I believe Bulgaria and Greece too, will enjoy a certain flexibility to accommodate the decoupled energy market, an objective situation the European Commission and the other member states also acknowledge, caused by the lack of interconnections, especially in Central Europe, in the region of Austria, Slovakia, Austria, Hungary," the minister added.

He expressed his hope that Romania will enjoy a certain flexibility to also continue support measures. "Certainly, all EU member states can take measures to protect vulnerable consumers, this will definitely happen after April 1, we'll see if we extend this support to other categories too," Burduja also said.

Asked what the scenario is for the capping scheme's extension in 2025, the official said that all possibilities are on the table.

"We do not rule out any working scenario, precisely because it's a dynamic context, there are variables that we do not control. For instance, we do not know if the Russian gas will transit Ukraine from January. A solution has not been found so far. We expect it to come by the end of this year. (...) All scenarios are on the table and from all the discussions we've had, there is also the necessary flexibility in Brussels, even if Romania has been in an early infringement procedure since 2022 for not having a fully liberalized energy market. So, Brussels is pushing towards an at least phased liberalization. Considering what is happening in the region and the prices on the spot market, especially in Eastern Europe, I am convinced that we will find understanding and it is only up to us to find the best formula and support it with solid arguments," Burduja concluded.

(Fluierul)