Offers for household natural gas were 18-23% above the capped level of RON 0.31 per kWh, prompting authorities to maintain the regulated segment beyond 31 March to prevent a sudden price hike, Energy Minister Bogdan Ivan said on Monday at a specialised conference.
The current price-capping mechanism for natural gas was set to expire on 31 March 2026.
Asked whether the post-intervention period could become a moment of market maturation and growth for the energy sector, the minister said that this had initially been the intention, including in relation to the 31 March deadline for natural gas.
"It is clear that this is where we must head. The initial intention, including for 31 March in the case of natural gas, was to have a sufficiently mature market so that state intervention would no longer be necessary. We are going through an extremely complicated period, and from the perspective of inflation and the budget deficit we are in a socially, politically and economically sensitive context. The moment we saw market offers 18%, 20% and even 23% higher than the RON 0.31 per kWh price made it clear that not only the Energy Ministry, but also the entire Government and the National Bank felt the need to find, together with the market, a solution that would not excessively distort the free-market mechanism, while ensuring protection of purchasing power - already eroded in recent times - and of household consumers," Minister Ivan said at the Romanian Energy Market Conference organised by the Intelligent Energy Association (AEI).
He stressed that there are no problems in the case of industrial consumers, as bilateral contracts are in place and prices are below the capped level of RON 0.37 per kWh.
The minister also said that a draft normative act currently under public consultation will be adopted by next week at the latest.
"Our initial intention, as market operators are aware, was to move 100% towards full liberalisation. At present we have a regulated segment and we will continue to have one. A draft normative act is under public consultation and will most likely be adopted next week, if not this week, in order to provide a degree of predictability for the post-31 March period and to ensure that there is no price spike for the final household consumer," Bogdan Ivan added.
Regarding the evolution of the gas market after 31 March, the Energy Minister underlined the need for broad dialogue with all stakeholders in order to establish a predictable and balanced framework.
"From the market perspective, what I want - together with representatives of employers' organisations, who are in dialogue with academics and industry specialists - is to have clear consultations starting now for the post-31 March period, so that together with the regulator we can ensure fair conditions, in line with western European models. No one should suspect that we are at odds with those principles or that they cannot be adapted to Romania. We must ensure optimal conditions, a fair price for the final consumer, and put an end to the ongoing disputes and statements between various stakeholders," the minister said.
Bogdan Ivan also expressed his desire for constructive dialogue and consultation-based decisions that would allow a return to functional market mechanisms in the near future.
"This is what I want. At the same time, when the situation requires it - and unfortunately this time it has, in an extremely sensitive political and economic context - we are obliged to intervene in a way that will allow us over the coming year to fully recalibrate market mechanisms. There is no reason to believe that next year the conditions will be the same as today. The message is very clear: constructive dialogue, decisions based on consultation and intersectoral discussions, and an approach that takes into account the economic and social balance which is currently under strain," the minister added.
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