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Archives for : February2015

The project of the Energy Strategy of Romania

strategia eneregtica a romanieiA study without the principles and methodology underlying the preparation of the study has the consequence of questioning its results. In this context and in order to support any intention of achieving an Energy Strategy, I would like to make some clarifications regarding the document submitted on December 10th 2014. The project started in June 2014, for drawing up the Energy Strategy of Romania for 2015-2035, involved going through the following stages before formulating the strategy (strategic objectives), following to complete it by October 15th 2015:

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Resemblance between contracts concluded in Swiss francs and contracts to be concluded in the free gas market

imagesND172A4M170,000 customers will conclude gas purchase contracts this year, signing clauses that will become, within several years, so burdensome that many customers will not be able to pay their bills. Then, as in the case of Swiss francs, institutions will blame customers. The PretCorectLaGaze (Fair Gas Prices) campaign aims at preventing this situation and will present some of these clauses. Gas market liberalization for non-household customers has highlighted practices through which suppliers have imposed damaging commercial clauses for customers, clauses which result in a gas cost different from the contractual price. Non-households that have initiated negotiations with gas suppliers considered price negotiation. Suppliers that defined customer profile have reacted quickly and offered gas at an “attractive” price, taking advantage of naivety of customers in interpreting clauses of the contract provided by the supplier. Thus, a number of “traps” were laid to customers, bringing the specific gas costs above the price quickly embraced by customers. Together with manipulation of capacity reserved in the transmission system (about which we have written), other clauses are introduced in gas sale-purchase contracts, which we highlight below:

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PretCorectLaGaz. Manipulation of non-household gas customers

aaaReservation of capacity is a notion that in Romania has no head and tail, determining difficulties in using it by many market participants, being a tool used to manipulate untrained customers. Failure to define the notion of capacity in the Romanian gas system is due to legislator (for both the primary and secondary legislation), which for certain reasons did not want to define this tool. Reasons are first related to the “garbage” that this tool would surface. Without planning to analyze this tool in the material present, we want to mention that in the production/import – transmission – storage – distribution – consumer gas flow, reservation of capacity is exclusively used in the transmission activity, creating confusion in the market. The lack of unitary approach of this tool throughout the gas chain determines the faulty functioning of the market, but also the speculative use or even with ill will of this tool. Capacity reserved in a gas supply contract to the end-customer, according to the applicable legislation, can be defined as being the hourly capacity reserved by supplier in the National Transmission System at any time during the contractual period. In the Romanian legislation, the notion of capacity in the delivery point to the end-consumer misses, but also the methodology for determining this capacity. Thus, the consumer does not know what is the capacity that should be reserved in the transmission system. Here, “benevolent” suppliers have helped consumers putting a clause in the contract under which the supplier unilaterally sets the capacity to be reserved on behalf of the consumer in the transmission system.

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PretCorectLaGaze: How is the gas price formed?

images8O2ZOSZQIn Romania, there are several price categories in the gas market, this aspect creating confusions. It is necessary to acknowledge the difference between the commodity price (gas at import points or at the entry into the transmission system from production fields) and tariffs related to services needed to carry gas from production fields and/or import points to end-customers. They include gas transmission tariffs, gas distribution tariffs and gas storage tariffs (in the worm period, demand is lower than production, gas being used in the cold season, when demand is higher than production). Tariffs of transmission, storage and distribution services are regulated by ANRE, being applicable similarly to all market participants.

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We need an Energy Strategy for Romanians

Ramas bun, dle Profesor Leca

Good by , Mr. Leca

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PretCorectLaGaze: How much gas prices could have dropped for end-customers if non-households had had the courage and knowledge to negotiate their contracts

images8CFEHaaKKENon-household customers did not have the opportunity, knowledge and courage to start a negotiation with gas suppliers on January 1st 2015. This situation costs them and brings money in the suppliers’ pockets. Analyzing the average costs faced by gas suppliers in the market and tariffs of related services, we believe that – compared to an average gas price in Romania offered in the market for the end-customer – the fair gas price in the market has important variations depending on the various months of 2015.

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