Starting in July, the largest energy providers in Romania will raise the price of natural gas by two and a half to three times, mostly citing the war in Ukraine as the reason for the increase. According to industry officials, it is impossible to predict how the price of energy carriers will develop in the coming months.

Despite the statements of government officials in Bucharest intended to reassure the population, the sharp increase in the price of energy carriers that started last year in Romania is unstoppable. Domestic service providers started raising prices at the beginning of last year, which was connected, among other things, to the fact that the retail price of natural gas was liberalized from July 2020 and the price of electricity from January 2021, i.e. the state-regulated prices ceased. Referring to the rise in world market prices, the companies first implemented price increases of 15-20 and then 100-200 percent, but there are also service providers that currently sell natural gas and electricity at four or five times the price compared to the tariffs of a year and a half ago. And there is absolutely no end in sight to the rising price process.

One of the largest gas companies in Romania, E.ON Energie, which supplies three million residential and industrial consumers, recently informed its customers that, starting in July, it will supply natural gas at almost two and a half times the current price. "Given the continuous increase in the purchase price of natural gas in the past period, and the changes in the conditions of the Romanian energy market, our company is unable to extend the contract with you under the current commercial conditions," states the contract amendment sent to customers. Accordingly, from July 2022, E.ON will sell natural gas at a price of 0.653 lei per kilowatt hour (653 lei per megawatt hour), including VAT, which means a two and a half times increase based on the current tariff of 0.280 lei/kWh.

It should be known that the German-owned E.ON already doubled the price of the energy carrier for its customers last year. The French-owned Engie Romania is implementing a similar price increase. The energy industry company, which has 1.9 million customers, also notified its residential customers these days that the current price of natural gas of 0.254 lei per kilowatt hour will change to 0.685 lei/kWh from July, which implies a price increase of more than two and a half times. In the case of other consumers, who have received natural gas from Engie at a price of 0.155 lei/kWh, the increase will be even higher, more than three times. This gas industry company also justifies the increase in price with the "change in market conditions", the "record purchase price", and the war in Ukraine, admitting that it is impossible to calculate whether there will be enough energy carrier next winter.

Source: Kronikaonline.ro

Picture: Szabolcs Rostás