AFEER: National Energy Co. Distorts Free Market

Uncertainties about the future operation of the National Energy Company (CEN) are causing much concern regarding the existence of a free energy market. Ion Lungu, President of the Associated Energy Suppliers in Romania (AFEER), told a press conference that the Association doubted the participation of the energy plants in Turceni and Rovinari in the energy exchange after their integration in CEN.

"The Government ordinance regarding the establishment of CEN only regulates the transfer of shares, and not how the company will operate on the free energy market. AVAS only issued a press release promising an increase in the amount of energy traded transparently, but only for what is available after the settlement of bilateral contracts and the contracts for the regulated market. But it"s hard to say what "available" means. We expect that Rovinari and Turceni will not be present on the energy exchange, or maybe with very small volumes," Lungu said.

Early last spring, AFEER requested that the future National Energy Company should not distort the operation of the free energy market and that the electricity produced by such company should be traded transparently in order to ensure fair access to all suppliers. The president of AFEER also said that the suppliers were convinced that Electrica SA, which would gain control over Turceni, Rovinari and Hidroelectrica, would have unlimited access to cheap energy sources and thus would not have to face the harsh competition on the free market. Private suppliers are demanding that authorities take measures to maintain transparency of the transactions between State-controlled companies.