ROMANIA: Volker Raffel (E.ON): We do not agree to continue the capping; vulnerable clients must be supported by the state

We do not agree to continue capping energy prices and what will happen after the cap disappears is a political decision, said on Saturday, Volker Raffel, CEO of E.ON Romania, emphasizing that only customers should be supported by the state vulnerable.

“It is a political decision that must follow, related to what happens with the ceiling. We know that we also have clients who have difficulties and these vulnerable clients must be supported by the state. This is a social policy and it must be clear what makes the Government support the vulnerable in the future. It is not the job of a player or a private company to give a social policy, but it is the responsibility of the state. From our point of view, if the state intervened in the past, at the time of the national or international crisis, continental, let’s say, at that time there was a justification to somehow intervene, but at the moment there is no longer a legal justification to intervene. It means, from our point of view, that a support of the state must have been given directly by state to customers. We do not agree to continue the capping. At the moment, prices are capped until March. If the state wants to intervene again, it is a political decision that is not negotiated with us, but we hope it will be taken in due time, because at the moment we see a lack of predictability related to what is happening in the market. It’s not only a problem for us, but also for our customers,” said Volker Raffel at a seminar on energy issues, organized by the Competition Council and ACUE.

He reiterated that there is no need for a generalized ceiling and that the support should be a social one, given directly to vulnerable clients and not to everyone.

Also, the director of E.ON emphasized that, currently, the company does not know the price that will be applicable to customers starting from April 2025, because the wholesale market is not fully functional.

“And we draw attention to the fact that there are not enough quantities offered on the wholesale market. And that’s why we, E.ON, have communicated to our customers, and we have seen that others have also done this, that the price is still not clear and will be communicated when it will be clear. (…) It depends on the price of the electricity we buy from the producers in Romania or from the market and, as we do not know the price, at the moment, at which we will be able to buy, I can’t say what the final price will be in the future”, stated Volker Raffel.

He added that there are not sufficient quantities of energy on the market to cover the need and that is why the suppliers are proposing an intermediate measure to the state, in order to have liquidity on the electricity market, as well as natural gas.

“In the past there was something like this, it’s called a Gas Release Program, which doesn’t regulate the price, but obliges producers to offer quantities periodically and always have something available for those who ask. And we propose the same approach on the electricity market We don’t want to know the price, we don’t want the state to set a price, but we want to know that quantities will be available in the future energy. It’s a problem, and here I’m referring to the big suppliers. If we don’t find electricity and don’t know the price of energy, we can’t offer a predictable price for customers,” the E.ON official pointed out.