Results of the energy sector's complete liberalisation

The long-awaited general liberalisation of the energy and gas markets is finally taking place on July 1st, 2007. The step, which is part of the process of rallying to EU legislation, will not have any major immediate effects. Alternative distributors and their favourite clients will have good reason to rejoice as with any step taken towards the completion of the liberalisation process until now. “The liberalisation of the market is not expected to bring about any major overnight changes but rather gradual changes. This year, there will not be any major events, it will merely be a preparatory period,” says Adrian Borotea, corporate affairs manager with CEZ Electrica Oltenia and former deputy manager with the National Regulatory Authority for Energy (ANRE). The liberalisation of both the energy and gas markets has been under discussion since 2000 and will finally be completed on July 1st and should allow small consumers the choice of a different supplier and energy producers the opportunity to sell their entire output on a free market. However, it will prove difficult to implement these changes, firstly because producers, in particular those selling at low prices, have already sold the bulk of their utility production for this year (as well as for the next few years) through bilateral contracts, and secondly because captive clients are not, at present, the targets of alternative suppliers, which prefer large consumers.