The state should no longer continue with price caps for everyone, it is too expensive for the budget and waste is subsidized – Volker Raffel, E.On
Share
The head of E.On Romania says that the capping of electricity prices should no longer be continued for all customers, but only for the vulnerable.
“It is necessary for the state to finally support the vulnerable, to stop continuing the capping of prices for everyone, it is too expensive for the state budget and waste should no longer be subsidized. We need a fair price for everyone, but also support for the vulnerable,” said Volker Raffel, the general director of E.On Romania, at an event organized by Profit.ro.
The head of E.On says that Romania can now prepare for liberalization “correctly”.
“This capping scheme was introduced in 2022 and lasts for three years. It was clear that we cannot go to a market that is not ready at all. The first time I came to Romania, 20 years ago, I saw that Romania was trying to prepare for liberalization. Now, 20 years later, we are still in the preparations. I think we have a chance now, I understand that this message has also reached the government, not to go out to a market that is not ready, but to use this extension period for a correct and true preparation for a market that is functioning properly”, said Volker Raffel.
He also says that in the absence of transactions, there is currently no clear reference for the price of electricity in the market, which raises problems of predictability of costs for industrial consumers.
“First of all, we need a support scheme for vulnerable consumers, it is essential. After that, we talk about the wholesale market. There we need an index, because if you want to buy a share today, you know what the price is there, in electricity you don’t know because there is no index, we need an index. Only serious players should be admitted. Not speculators who offer no guarantees. They make an offer and then disappear when the price no longer suits them.
If we prepare a liquid market that works, it is an advantage not only for our sector, but it is an advantage for the entire economy. Today, no one knows what the price of electricity is in July, I hope that now the stock exchange will offer it for the period after July, but also for next year. If an investor wants to come to Romania, he needs to know whether to invest, what the energy costs are not only for next month, but also for next year. That is why it is very important to have a functional market”, the head of E.On also said.
We remind you that the final prices for electricity are capped until June 30, and from then on the market will be liberalized. By June 15, the authorities must develop a methodology for a new support mechanism, but future aid will be granted only to certain categories of customers, considered vulnerable, who will be identified by the Ministry of Labor.
The legislation that extended the cap until June 30, 20205 established the obligation for producers to trade at least 50% of their annual electricity production through contracts on electricity markets, other than the spot and balancing markets. Wind and photovoltaic producers do not have this obligation.
