E.ON Gaz threatens to cut off gas supply

From the third quarter of the year, E.ON Gaz Romania intends to increase gas prices by 19%, otherwise the level of imported gas will be reduced, which could mean some consumers’ gas supplies are cut off. Company officials say losses in the first half of the year, which amounted to 45 million RON, were caused by the end consumer price remaining constant, and to the higher cost of imports. The request filed by E.ON Gaz comes after a 8.5% increase was made in February, while on April 1, the Romanian Energy Regulatory Authority (ANRE) decided to preserve the end consumer price. At the beginning of the third quarter, E.ON Gaz expects the price of imported gas to reach 470 dollars per one thousand of cubic metres, while the price considered by ANRE remains at 370 dollars per one thousand cubic metres. By the end of the year, gas prices could reach as much as 500 dollars per cubic metre, considering the recent rises in the price of an oil barrel. Company representatives estimate that if prices do not increase soon, the result will be higher prices in the future amid company losses. “Since significant financial damage to the company is not an acceptable alternative, E.ON Gaz Romania will be forced to reduce its volumes of imported gas. This will lead to a gas deficit on the Romanian market,” says Achim Saul, chairman of the Board of Directors of E.ON Gaz Romania.