FPPG launches a new independent study conducted by Deloitte Consulting – EVALUATING CRITERIA FOR ESTABLISHING NATURAL GAS PRICES . The study contains descriptions and comparisons of similar situations in other European countries, and presents a number of recommendations, as well as a more effective alternative to the current methodology used for calculating the gas price.
Considering that now most of Romania’s natural gas production comes from onshore reservoirs, we encourage the use of correct pricing criteria for natural gas so as not to jeopardize the industry and the investment climate.
We wish to support the Romanian natural gas production sector while both ensuring Romania’s energy security and protecting vulnerable consumers. Thus, we affirm the following:
- The reference price must reflect the market’s and industry’s local features (types of concluded contracts, price volatility, operating and regulatory costs).
- The reference price must reflect actual prices in order to avoid a surcharge which could subsequently result in higher costs for the final consumer.
- The reference price shall be predictable, transparent and non-discriminatory.
- The reference price must be the outcome of the dialogue and the debates between all parties involved: authorities, producers, centralized market operators, academia, consultants and civil society.
Moreover, the Oil and Gas Employers’ Federation(FPPG) does not endorse the latest set of amendments attached to the bill on the taxation of additional revenues resulting from the deregulation of gas prices (Plx 199/2017), which was voted by the Industry and Services Commitee of the Chamber of Deputies.
Following the preliminary report adopted last week, November 27, the FPPG expresses its disapproval of the new series of amendments. These amendments include the removal of the possibility to deduct the excess income tax, and the application of this tax to a reference price based on an unrealized price.