EC urges Romania to remove gas pricing restrictions

Business Forum
The European Commission has issued a reasoned opinion to Romania, urging the country to remove restrictions on gas producers' ability to determine wholesale prices. 

The Commission's decision follows concerns that Romania's national measures interfere with the free market.

Specifically, Romania has introduced a measure that requires gas producers to sell a portion of their domestic production at a fixed price to wholesale customers. The ECargues that these regulated prices distort the signals of the EU-wide wholesale market. They also disrupt the effective functioning of the market.

These actions are deemed incompatible with Directive 2009/73/EC, which outlines common rules for the internal market on natural gas.

In October 2024, the Commission initially sent a letter of formal notice to Romania regarding these gas pricing measures. The Commission believes that the measures restrict the fundamental principles of free price formation in the gas wholesale market. This restriction is seen as detrimental to both the internal market and consumers.

As a result, the Commission has now issued a reasoned opinion, giving Romania two months to respond and implement the necessary changes. If Romania fails to comply, the Commission may refer the case to the Court of Justice of the European Union.

It is important to note that this reasoned opinion does not address the legality of Romania's revenue cap for electricity producers, which was also part of the initial letter of formal notice. 

The EC has deferred this issue due to several preliminary rulings pending before the Court of Justice. In addition, the Commission will decide whether to pursue infringement measures on the electricity revenue cap after the Court of Justice rulings. 

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Business Forum  |  8 May, 2025 at 5:03 PM
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