ROMANIA: The years when there was a price cap brought huge profits for some electricity supply companies! – IEA
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The electricity price cap is presented as a great advantage for the Romanian consumer, but it has brought higher profits for many suppliers, up to huge profits for a few companies. This situation demonstrates the need not to resort at present to a simple extension of the energy and gas price cap, but to a reset of the price formation method, in a period of transition and preparation for the liberalization of the gas market.
Using https://www.listafirme.ro/ we extracted the profits made by the electricity supply companies during the energy price cap period, an aspect that attests that there were companies that doubled, tripled their profits during this period.
The ratio between net profit and turnover of the TOP 5 electricity supply companies according to this indicator based on data from https://www.listafirme.ro/
| LUMINA SOLAR SRL | TINMAR GREEN ENERGY | AMV SOLAR SRL | MAR TIN SOLAR ENERGY SRL | TINMAR ENERGY | |
| 2023 | 155% | 134% | 126% | 124% | 10% |
| 2022 | 106% | 136% | 146% | 159% | 6% |
| 2021 | 142% | 66% | 42% | 64% | 4% |
| 2020 | 231% | -20% | 88% | 64% | 5% |
| 2019 | -15% | -96% | -43% | -33% | 3% |
We believe that it is also necessary for the electricity market to transition to a liberalized market with the preservation for a limited period of time of the capped price at the producer, but by types of energy forms and the fixed commercial component for the retail supplier, with the gradual transition from the capped price, through a formula price, to a liberalized price, but simultaneously with the implementation of measures to make the market transparent and resume its functioning:
Urgent launch of a massive information and training campaign for consumers in order to re-liberalize the electricity market
Professionalization of the “watchdogs” of a free market – Reorganization of ANRE, the Competition Council, ANPC and replacement in their working mode of the reactive elements as main actions – fining those who violate the law after reporting abuses, with preventive actions and actions to reduce abuses on consumers and prevent violations of the law.
Establishment of an Alternative Dispute Resolution entity on the energy market, based on the banking model.
Obligation of suppliers not to tacitly extend supply contracts without notifying customers
Market regulations:
Monthly obligation by ANRE (directly and indirectly) of suppliers to participate in competitive electricity bidding sessions/actions starting with February 1, 2025, so as to conclude new supply contracts with all their customers within the deadline allocated to the preparation of the market liberalization.
Publication of the commercial margin on electricity invoices and simplification of them, as well as of contracts.
Reports on the average price established on the market, so that the correct price level is known and consumers no longer accept any price requested by the supplier so easily. The obligation for ANRE and the Stock Exchange Operators to produce weekly and monthly reports, published no later than the 3rd day of the following week and the 5th day of the following month, regarding the average weekly/monthly prices for the various types of energy products.
