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Capping gas prices will lead to new price increases in April (Intelligent Energy Association)

March 8, 2022

Capping the price of gas was a useless measures and, worse, will determine new price increases starting with April, according to an analysis conducted by the Intelligent Energy Association, sent, on last Monday."The median price of natural gas at the end consumer in November 2021, according to INS [the National Institute of Statistics] data, is around 220 RON/MWh. Thus, apparently, the capping of the final price of natural gas at a value of 370 RON/MWh and 310 RON/MWh starting with February 1 is useless in this period," showed the representatives of the association."In fact, the capping had a very important effect, it determined, according to the ANRE [the National Energy Regulatory Authority] website, the increase of gas prices offered on the market from a minimum level of 220 RON/MWh to a level of minimum 420 RON/MWh in November 2021 and to 640 RON/MWh in January 2022. Thus, all contracts that reach their deadline in this period or the coming period will be concluded at prices higher than 600 RON/MWh," according to the mentioned source.The association emphasizes that, for many home consumers, the capping has no effect at this time (according to a study of the association, 80% of the household gas consumers will not benefit from price caps), but will bring a higher gas price for final consumers in 2022.Moreover, starting April 1, 2022, increases in the transport and distribution tariffs are to take place, 2022 being the year when a new regulation period concludes. According to experts, there will be important increases in prices due to the free connection imposed by the authorities (the promised gratuity will be done by increasing prices paid by other consumers), increasing the cost of gas losses and technological consumption, useless or inefficient investments in the sector and others."In 2020, the authorities have enacted the Gas Release Program, which had the declared purpose of decreasing the price of gas, the real result was the start of increasing gas prices in Romania. In 2021, authorities enacted the Price Cap for gas, which had the declared purpose of decreasing gas prices, the real result was increasing prices on all offers. In conclusion: Taxes do not increase, but energy bills increase! For people, the same poverty!," mentioned the association's representatives.    

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