Natural gas market, 30% deregulated

The natural gas market in Romania will be 30% deregulated this spring, compared with the current 25%, following certification of new eligible consumers, National Natural Gases Regulating Authority (ANRGN) sources said. Romania already had one of the freest markets of all the European Union applicants by the end of 2002, given that Hungary, Bulgaria and Turkey have yet to open their markets. The deregulation extent of a market can be ascertained by looking at the share of eligible consumers in the total domestic consumption registered in the previous year. Eligible consumers may negotiate gas deliveries directly with the suppliers, with the single regulated price for the regulated sector working as a maximal price. The companies planning to acquire the eligible consumer status have to use up at least 4 million cubic metres of natural gas a year and have no outstanding bills to suppliers on the free market. The new regulation for certifying eligible consumers stipulates that the applicants are no longer required to produce proof of creditworthiness, which considered performance indices such as liquidity, solvency or profit. ZF