E.ON Moldova fears unfair competition

OPCOM energy exchange is not sufficiently well regulated and transparent, yet, to attract major players, says Guenther Schubert, the manager of E.ON Moldova, a company that became part of the portfolio of Germany’s E.ON Energie.
“Romania can become one of the most important countries in the energy business sector of South-Eastern Europe in the context where the OPCOM energy exchange is going to develop. Transparency and a set of strict rules for each participant are the first things that need to be implemented in the trading mechanisms of the exchange,” says Schubert.
Guenther Schubert, 56, took over the management of E.ON Moldova electricity distributor last April, replacing another German, Henning Probst. Schubert has a 25-year track record in the segment of utilities, and has been restructuring former state-owned electricity distribution companies in Eastern Germany and Poland for 15 years.
One of the problems with the power system, which could turn into a competitive edge of the domestic energy market through restructuring, is the way OPCOM electricity exchange operates.
“Now, only a small part of the volume of generated energy is traded on OPCOM. This happens because there are no guarantee mechanisms, making participation in this market risky, and because of the lack of transparency, since there is no official information on prices and their trend available and no compulsory standard contracts. Thus, some participants are likely to enjoy preferential treatment,” says Schubert.
Schubert believes competition is tighter on the domestic market than on mature European markets. A problem E.ON Moldova representative points to is the fact that this competition comes from some small electricity trading firms managing to supply energy at competitive prices even to some former customers of E.ON Moldova.
“(…) We are not afraid of competition, which is a positive outcome of market liberalisation, but of the unfair competition generated by deals lacking transparency, such as the sale of electricity under different terms than those set by regulatory authorities,” specifies Schubert.
The Germans rely on their extensive presence in the entire region of Moldavia to provide their competitive edge. After Schubert was appointed, the company has been operating with five units, one of which handles distribution and one handles supplying. To achieve the new structure, the Germans worked with A.T.Kearny international consultancy.
The company plans to open six new customer centres and also implement the methodology through which customers will be able to pay their bills through several partner banks. The company now has three such centres in Bacau, Suceava and Iasi.
This year, the group’s investments in Romania will amount to some 40 million euros.

E.ON Moldova
After Schubert’s appointment has been operating with five units: distribution, supply, finance, technical services and corporate services
To achieve the new structure, the Germans worked with A. T. Kearney international consultancy
One of the first steps toward reorganisation consisted in employee training
Plans to open six new customer centres and also implement the methodology enabling customers to pay their bills through several partner banks