Hajdinjak (E.ON): Romania, no longer as stable economically, but still see growth potential

Romania's macro-economic situation is no longer as stable as in the past years, but there are still growth prospects, on condition that budget balance be maintained, Frank Hajdinjak, E.ON Romania Executive Director told Thursday a press conference organised by the company. 

"Inflation is on the rise and we must keep an eye on the state budget so that spending does not rise beyond what has been planned, we must keep the deficit under control. The situation is not as stable as it has been in the last period and I hope the authorities are taking the correct measures," the energy company official said. 

He underscored the need for budget balance so as to maintain Romania on an ascending trend. 

"On the other hand, we still have expectations regarding a significant rise for Romania, which is good, but it is of utmost importance that we keep the balance. This applies not only in the industry we activate in, but to the entire economy," Hajdinjak showed. 

Previously, at the same conference, he affirmed that the gas price on the Romanian market, both from domestic production and from imports, will significantly rise next winter, following the increase of oil quotations. 

At the same time, as regards the intention of the National Energy Regulatory Authority (ANRE) to curb the rate of return of the gas distributors from 8.4 percent to 5 percent, the E.ON official specified that this will also strongly affect the investment level of the energy companies in the power grids. He considers the rate of return should be at least 7 percent. 

In his opinion, the solution is the implementation of a protection system of vulnerable consumers.