E.ON head: Gas prices, set to register two-digit growth in 2011

Frank Haidinjak, general manager of E.ON Romania, a company operating on the natural gas and electricity market, with turnover worth around 1bn euros, hopes the Romanian economy will recover, but says there is no sign indicating growth so far. Moreover, E.ON head believes gas prices should register a two-digit increase this year, a few days after the IMF required the liberalisation of the market.
“We hope to see economic growth this year, but there are no recovery signs, yet. Last year was characterised by stagnating demand, both on the gas and electricity segments, and we do not expect the situation to change this year,” says Hajdinjak.
Though imports in 2010 covered less than 20% of consumption, gas suppliers have always maintained they are unable to cover acquisition costs because of regulated prices.
Though there has been talk of liberalisation for years, things have been set in motion as late as after the agreement signed by Romania with the IMF. Thus, electricity and gas tariffs are due to rise in 2013-2015, on the basis of a calendar to be set until September 2011. E.ON says, though, that gas prices should have a two-digit increase this year.