Gas prices to go up 12.5pc, electricity 4.4pc, as from July 1

The regulated gas prices will go up 12.5 percent, while the regulated electricity prices will advance 4.4 percent, both from July 1, the National Energy Regulatory Authority (ANRE) reports.
Thus, the new regulated prices for gas supply to household users will stand at RON 104.41 per MWh in the case of the gas supplied by EON GAZ Romania (a rise of 11.6 percent from the current prices), and RON 104.70 per MWh in the case of the gas supplied by Distrigaz Sud SA of Bucharest (up 12.5 percent from the current levels).

The decision to adjust prices upwardly is justified by rises in the gas acquisition prices in January-August 2008, as well as by attempts to partially recover the price differences for this period.

ANRE is said to have looked into all the requests submitted to it by gas suppliers, particularly Distrigaz Sud and EON GAZ Romania that were asking for regulated prices to be adjusted to the real acquisition costs, taking into account estimated import prices of $480 per 1,000 cu.m. in the third quarter of 2008, up 30 percent from the current $370 per 1,000 cu.m. reflected in the final prices.

ANRE says the decision to increase prices is a necessary measure for securing continuity in the supply of natural gas and the establishment of the winter stocks.

The new electricity prices for household users will be RON 0.3125 per kWh as from July 1, 2008, up 4.4 percent from the current prices.

The new price rises are justified by surges in fuel prices as well as by investment in bringing the electricity utilities in line with environmental standards and also by additional spending entailed by reducing polluting emissions of greenhouse gases (the carbon dioxide). At the same time, the new prices are said to be a correct reflection of electricity supply costs in the new context that has resulted from the unbundling of the electricity distribution and electricity supply activities, as requested by European regulations.

Distrigaz Sud requested approval for a 22-percent rise in the regulated prices to allow it to recover the losses as a result of import prices having advanced.

E.ON Gaz Romania presented estimations reading a rise in gas import prices from $500 per 1,000 cu.m. as on July 1, to $600 per 1,000 cu.m. in the fourth quarter of 2008, and requested approval for a rise of 24 percent in the regulated prices to be quoted by it as from July 1, 2008.

The last gas price rises to date occurred on February 1, when gas prices for household users increased by 8.5 percent. At that time, prices for domestic gas upped 5 percent, and those for imported gas 17 percent.

The last electricity price rises to date occurred on April 1, 2007, when prices went up 3.95 percent on the average. ROMPRES