The energy price capping mechanism will lead to accumulation of additional costs for market participants in a discriminatory manner: ACUE

The ACUE Federation considers that the intervention of the authorities is necessary to compensate for the increases in energy prices. However, the recently adopted electricity and natural gas bill clearing mechanism and the price cap mechanism are complex and generate unpredictability both at the level of suppliers and in their relationship with the final consumer, the organization says.

In order to ensure a unitary understanding of the implementation process and to determine, in due time, the beneficiaries and the modalities of application of the established facilities, ACUE requests the adoption of the secondary regulations as soon as possible.

The current situation is exceptional and members of the ACUE Federation appreciate the efforts of the authorities to identify immediate measures to reduce the impact of price increases on households and businesses in the cold season. ACUE has consistently promoted the introduction of a simple compensation mechanism that does not lead to additional costs for market participants in a discriminatory manner.

With regard to the proposed settlement mechanism, the ACUE Federation expresses its concern and considers that the envisaged process will lead to the accumulation of significant additional costs for energy suppliers and distributors. Moreover, the settlement mechanism is not based on a real assessment of the budgetary effort that would allow the forecasting, respectively the anticipation of the expenses in the state budget, in order to be able to be covered with certainty, within the stipulated terms.

These aspects, corroborated with the lack of a timely budgetary rectification will make it difficult / block the recovery of real costs in a reasonable time, which will lead to the accumulation of unbearable losses at the level of suppliers and distributors and will make companies impossible. to financially support its operations.

“The ACUE Federation reaffirms its support for the implementation of policies decided by the authorities, but it is our responsibility, as a dialogue partner directly involved in the implementation of these provisions, to emphasize the effects on the business environment which, in our opinion, pose a real risk to financial stability. energy suppliers and distributors, which could lead to major imbalances in the energy market and, consequently, even greater pressure on prices to the final consumer,” said Dana Daraban, executive director of ACUE.

According to ACUE members, the price cap model adopted does not stimulate competition and no prudent energy procurement policy.

By imposing the same ceiling on all suppliers, the measure will generate inequity among them. The regulated tariffs in the final price component are different, depending on the distribution operator and the measure will lead to differentiated treatment between suppliers. Moreover, the price competition is suspended, and all suppliers will sell electricity at the price of 1 lei per kWh, respectively natural gas at the price of 0.37 lei per kWh. Last but not least, the reference price for establishing the amounts to be offset by the Romanian state does not relate to a time interval similar to that for which the compensation is allocated and the calculation of the reference price does not reflect the real value of the amounts. recovered for some suppliers, in particular for those with a prudent wholesale energy procurement policy.

At the same time, the elements introduced in relation to regulated tariffs interfere with the independence of the regulatory authority, these tariffs being the sole responsibility of the regulator.