AEI's Chisalita: Energy market liberalisation, only option for Romania

The only option for Romania is the liberalisation of the energy market as of April 1, along with market preparation, as much as time allows it, Intelligent Energy Association (AEI) president Dumitru Chisalita said in a statement sent to AGERPRES on Wednesday regarding the expiration of the price caps for gas and electricity on March 31, 2025.

According to him, the biggest challenge of the year is related to the fact that in March, the price caps for gas and electricity are set to expire.

In this context, he says that Romania's commitments to the EU are for the liberalisation of the gas and electricity market, and continuing with the price caps will lead to a reduction in EU funds, something that the country cannot afford. At the same time, Chisalita believes that keeping in place the price caps for gas and electricity would mean high state budget expenditures for compensation payments to suppliers.

"Let us not forget that Romania succeeded in 2024 in reaching a budget deficit worthy of a country at war, of over 8-9% of the GDP, despite collecting more money from taxes and borrowing almost 50 billion euros, the largest amount ever borrowed by Romania in a single year. A record deficit, record loans, record freezes of benefits for the disadvantaged, but the IMF is becoming, day by day, our only savior. Will the IMF accept the continued budget deficit due to price capping for energy and gas?," said the AEI president. According to him, liberalising the gas and electricity market requires proper preparation. This includes "campaigns to raise the minimum knowledge needed for a functioning market," because "liberalisation means understanding, and understanding is based on learning."

Additionally, trust in the market needs to be developed, especially since, according to the expert, the level of trust in these institutions is low among the population.

Chisalita further points out that the energy market needs to be organised by ensuring operating rules and that time is also needed for all "actors" of the energy market to be aware of the advantages of liberalisation. "Freedom exists as long as it is acted upon according to rules supported by values that are understood, assimilated and shared by consumers," mentioned the AEI president.

He maintains that, without preparation for the liberalisation of the gas and electricity market, there will be significant price increases for gas and electricity, as suppliers will take advantage of the lack of knowledge to create price advantages. Additionally, "we will witness a stigmatization of European and Euro-Atlantic values based on freedom, and we will see an increase in energy poverty and deep economic problems," the quoted source adds.

Dumitru Chisalita announced that the Intelligent Energy Association will launch an Information Campaign and disseminate specific information regarding the natural gas market.