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There are several other elements apart from the price consumers should look at when they are about to sign a new energy contract, as too low fees could hide a trap, CEO of power supply and distribution company Electrica Corina Popescu said in an interview with AGERPRES.
Popescu advises consumers to be very careful about all contractual clauses, payment terms and possibilities to terminate the contract so that they do not remain captive to a certain supplier. With the energy market slated for full liberalization on January 1, 2021, there is a risk that people will make bad decisions if they are not informed correctly, she says.
In her opinion, for the market to work optimally at fair prices, vulnerable consumers should be identified before liberalization and this should be the priority for 2020.
The Romanian energy market is a mature market, says Corina Popescu, "in that we have all the trading instruments at our disposal. What is still missing are those directly negotiated bilateral contracts and the Power Purchase Agreements that are being introduced for new projects, on the verge of liberalization. The gas market has been liberalized starting July 1 and the electricity market is next."
"In a market with fair competition, liberalization should bring consumers a gain in service quality. When I refer to service quality, I wouldn't refer to the price alone, it's not just the price that is important, because if considered alone, the price can hide certain pitfalls. The offer must be considered in its entirety: what are the payment conditions, what are the contract clauses, what is the possibility that the customer is kept captive through certain contract clauses, if he terminates the contract earlier. ... Each client should proceed to an assessment that looks further than just the price," Popescu explains.
The Electrica head also spoke about the measures the government needs to take to prevent the risk of Romania losing the huge amounts that are up for grabs under the EU's Green Deal plan. In her opinion, Romania's Energy Strategy and the National Integrated Energy-Climate Change Plan should be urgently finalized, thus enabling companies to come up with concrete projects that are eligible for EU funding.
"I think we too should define an energy strategy and I sincerely want a strategy that outlines the strategic directions Romania will follow, which presents the plans for the next period. The strategy should also be approved, to serve as a programmatic document. Then comes the National Integrated Energy and Climate Change Plan, where we should come up with effective projects that commit to our targets for 2030. By the end of the year we must have committed to these values. Then there's the third element, this EU-wide Green Deal with transition funds that offer many more possibilities. I believe that for Romania, the Green Deal holds many possibilities at all levels, not just for the energy sector. There's the Transport part, Energy Efficiency, e-Mobility, Agriculture, there are a lot of segments. I would be very happy if energy consumption increased. It's better for the power grid and for us as a business, because we are able to invest. Opportunities exist, but we must integrate with an orchestra and all play the same under a conductor's baton," Popescu goes on to say.
Corina Popescu also mentioned Electrica's plans to acquire CEZ Romania in consortium with Hidroelectrica and the Energy Participation Management Company (SAPE).
