E.ON Romania estimates that it will register losses of over 100 million euros in the segments of supply and distribution of electricity and gas, due to the measures taken by the state.
For the supply segment, the level of ceiling prices set by the state in invoices will lead to the accumulation of losses estimated at 40-50 million euros between November 2021 and March 2022, even if the state will return the money promised to compensate the invoices. This is because the level of the capped prices is lower than the company’s costs.
Also, for the distribution segment, the company expects losses of some 70 million euros for the whole year, which would be added to the 40 million euros from last year. This is because the energy regulator ANRE does not recognize in the final distribution tariffs all the costs that should be recognized, according to the methodology.
In late 2021, Italian Enel said that it had planned to invest 2 billion euros in its operations in Romania, but now it is reconsidering the plans after the Government decided to cap energy prices and levy a windfall revenue tax, including in the segment of renewable energy generation.
According to Enel Group CEO Francesco Starace, the volume of investments will be downsized if the measures remain in place. Enel believes that the measures imposed by the Romanian authorities are incorrect, discourage investors, create instability, do not solve structural problems and need to be changed, as happened with the measures taken by other Governments in Europe.
