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Gas market does not necessarily need several gas exchanges, but it certainly needs competition, transparency and non-discrimination

A year has passed since ANRE had to issue a series of Implementing Rules for Law 123, amended by GEO 64/2016, proposing certain principles underlying the future regulations. Unfortunately, these proposed principles were limited only to the centralized market, which is only a small part of the gas market, without including the principles necessary for the functioning of the gas market as a whole.

For this purpose, the Intelligent Energy Association has sent to ANRE a letter including the proposal of principles necessary to ensure the functioning of the gas market (you can find here the document in extenso). Starting from the Document submitted for public debate published on ANRE’s website, regarding the principles of natural gas trading on centralized markets, as a result of provisions of the Government Emergency Ordinance no. 64/2016, of the Electricity and Gas Law no. 123/2012, with further amendments and additions, we notice that the document put up for public debate lists certain principles for only part of the requests imposed by GEO 64, i.e. excluding the Gas trading on the centralized markets, an obligation deriving from the paragraph (3^11) introduced in art. 177 of Law 123/2012.

We notice with surprise that the document in question does not refer to all the obligations set for this purpose under the law for ANRE, i.e. Law 123 art. 177, which provides in paragraph (3^12) for the obligation of this institution to issue regulations ensuring the conditions of competition and transparent and non-discriminatory access of buyers to the gas quantities offered on the competitive market. Thus, incomprehensibly, the ANRE’s Document put up for public discussion only partially addresses the obligations set by law, i.e. it refers exclusively to transactions on the centralized markets, i.e. the markets where gas exchanges operate.

Thus, the first corrective requirement, mandatory, of the document in discussion is to establish principles for gas trading on the gas market, the centralized market being only part of the gas market.

Given that the document in discussion refers to principles, I believe it is necessary to organize these principles based on the regulatory elements set by law, in order to be able to address all the articles of the law on this issue and respectively to be able to subsequently use them in an efficient manner in building a single ANRE regulation for Gas Trading on the gas market in conditions of competition, non-discrimination and transparency.

Thus, I propose the following structure of the document:

  1. Principles for ANRE regulations ensuring the conditions of competition on the competitive gas market (regulations to be issued according to Law 123, art. 177 set under paragraph (3^12))

 

  1. Principles for ANRE regulations ensuring the conditions of transparent and non-discriminatory access of buyers to the gas quantities offered on the competitive gas market (regulations to be issued according to Law 123, art. 177 set under paragraph (3^12))

 

  1. Principles for the issue of specific rules on the centralized gas markets, for the purpose of gas trading in competitive conditions (regulations to be issued according to Law 123, art. 177 set under paragraph (3^11))

 

  1. Principles for the issue of specific rules on the centralized gas markets, for the purpose of gas trading in a transparent and public manner (regulations to be issued according to Law 123, art. 177 set under paragraph (3^11)

 

  1. Principles for the issue of specific rules on the centralized gas markets, for the purpose of gas trading in a non-discriminatory manner (regulations to be issued according to Law 123, art. 177 set under paragraph (3^11))

 

  1. Other principles necessary to be implemented on the gas market to ensure Gas Trading on the gas market in conditions of competition, non-discrimination and transparency.

Giving up the aberrant debate One gas exchange, Two gas exchanges! and starting the real debates necessary to build the liberalized gas market: How to bring TRADING in the middle of gas activities?, as a primary element, and How to perform TRANSACTIONS in conditions of competition, non-discrimination and transparency?, as a single direction that can bring a functional liberalized market in Romania.

 

Translation from Romanian by Romaniascout.