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The Oil and Gas Employers' Federation (FPPG) rejected the alarming and unfounded statements regarding the effects of the gas returning on the free and functional market, in the context in which Government Emergency Ordinance (GEO) 114/2018 did not reduce the price to be found on the invoice for gas, according to a press release on Friday sent to AGERPRES.
"GEO 114 was presented as a good measure meant to decrease the price for gas for domestic consumers. However, in reality, the price on the invoice did not drop. On the contrary, the GEO resulted in an increase of the price for the industrial consumers, which was also reflected in the price for consumer goods," reads the release.
The companies in this sector say that the removal of the provisions of GEO 114 and the return to a free and functional market could lead to the reintroduction on the market of a gas volume of 4.3 billion cubic meters (representing the obligations on the regulated market), which will allow the disengagement from the import prices.
Moreover, the increase in the inter-connection capabilities with Bulgaria, Hungary and Ukraine, planned for next year, will encourage competition on the gas market, through the diversification of resources, such as LNG (Liquefied Natural Gas).
The main argument brought against the liberalization of the gas market is the protection of the vulnerable consumer, claims the federation. However, the vulnerable consumers must be protected through mechanisms that could coexist on a free market, as it happens in other countries in Central Europe and not only.
Unfortunately, although there are action plans made by specialists, such as those from Emerton, there was no such functional mechanism implemented in Romania yet to protect them. Which is why there is need of urgent action in this respect," said FPPG.
AGERPRES
