Romania receives letter of delay from EC not representing condemnation or sanction

Romania received a letter of delay from the European Commission, which does not represent a condemnation or sanction but a call for clarification and adjustment of the national legislation, the representatives of the Ministry of Energy say."The infringement procedure started by the European Commission is at an early stage, in which Romania received a letter of delay. This does not represent a condemnation or sanction, but a call for clarification and adjustment of the national legislation in order to comply with the rules of the European Union. Romania has two months to respond and provide additional information or to propose solutions to correct the identified problems. If the response is not considered satisfactory, the Commission may issue a reasoned opinion, followed by referral to the Court of Justice of the Union European Court (CJEU). The procedure can take months or even years, thus providing time to discuss and implement solutions", the ministry's representatives explain in a release.According to the cited source, the Ministry of Energy has an open dialogue with the European Commission and is prepared to collaborate in order to reach a solution that respects European directives, but also protects the interests of Romanian citizens, an essential argument being that the measures taken by Romania had with the aim of protecting the population and ensuring energy security in a difficult context, generated by the European energy crisis."The measures were applied to prevent extreme increases in energy prices for consumers, especially for households and essential public institutions, and to maintain the stability of the domestic energy market. Romania adopted these measures as a temporary response to manage the impact of increased volatility energy prices on international markets and to ensure access to energy at affordable prices for citizens and companies", the press release states.According to the cited source, Romania has taken note of the European Commission's requests regarding the current legislative framework related to the Romanian energy system. The compensation and capping scheme will remain in force in its current form, as the law provides, at least until April 1, 2025, and for the following period, Romania will consult closely, including with the specialists of the European Commission, so that a price can be ensured as accessible and competitive as possible in electricity and natural gas for all Romanians and the business milieu."Romania is collaborating with the European Commission to find solutions and it must be emphasized that the national measures adopted so far had the main purpose of protecting citizens and national energy security in a crisis context. Our message is clear: open dialogue and adaptation to the context European, but also of responsibility towards the citizens, this winter, the prices in invoices remain capped. Romania will raise the structural infrastructure problems that contribute directly to the increase in energy prices in South-Eastern Europe during the meeting of the Energy Council on October 15. Cross-border congestion and limited interconnection capacity prevent the markets in the region from benefiting from the price stability observed in other parts of the European Union", said the Minister of Energy, Sebastian Burduja, quoted in the press release.The representatives of the ministry reiterate that the adopted measures were thought of as an emergency reaction in an exceptional context. Romania acted according to some mechanisms allowed by European legislation in cases of crisis, such as the EU Regulation on emergency interventions on the electricity market (Regulation 2022/1854), which allows member states to intervene to protect citizens in the face of high prices ("indeed, some provisions of the regulation already expired last year")."As the energy situation stabilizes, Romania will evaluate and adjust the measures in order to better comply with EU norms, but without compromising the protection of the population and the stability of the internal market. The Commission considers that the measures implemented by Romania could contravene the EU legislation on the internal market of electricity (Directive 2019/944 and Regulation 2019/943). In order to issue a reasoned opinion or to continue the procedures, the Commission must fully understand all the implications of these measures and the real effects on the internal market and competition, including traders and energy suppliers. The request for additional information reflects the Commission's desire to clarify all the details before taking additional measures in the infringement procedure," the representatives of the Energy Ministry say.The European Commission decided on Thursday to initiate a procedure for finding non-fulfillment of obligations by sending a letter of formal notice to Romania for limiting the freedom of market participants to set their wholesale prices for electricity and gas, as well as gas exports, reads a EC press release.More specifically, Romania has introduced national measures that require certain electricity producers to contribute all revenues that exceed a certain price threshold to an energy transition fund and oblige gas producers to sell part of their production at fixed prices to certain customers. These national measures are incompatible with Directive (EU) 2019/944 and Regulation (EU) 2019/943 on the internal electricity market, as well as with Directive 2009/73/EC on common rules for the internal market in the natural gas sector.The measures in question limit the freedom of electricity and gas producers to set their wholesale prices in Romania. Therefore, the Commission considers that these measures restrict the fundamental principles of free price formation and free cross-border trade on the wholesale electricity and gas markets.