Romanian electricity supply companies are reporting that the state owes them approximately 1 billion euros in compensation due to the price regulation mechanism. This financial burden significantly impacts their ability to procure electricity through medium-term contracts, forcing them to rely on the volatile and costly spot markets.
The Federation of Associations of Energy Utilities Companies (ACUE) has highlighted that electricity producers are largely avoiding the sale of electricity under medium-term contracts. These challenges hinder the establishment of a stable market necessary for transitioning away from the price cap system set to expire on April 1, 2025. ACUE emphasizes that without a functioning market, there is little visibility or predictability regarding future electricity prices.
To address these issues, ACUE advocates for timely payments to electricity suppliers and suggests implementing an “electricity release” mechanism. This approach would mirror a previous scheme used for natural gas, requiring producers to offer packages of electricity for sale on the medium-term market.
Currently, ACUE notes a lack of available contracts from producers for delivery in 2025, raising concerns about the implications for consumer prices in the coming year.
