13 September 2024

Romania to seek EU compensation for East-West energy price gap

Romania will ask the Council for compensation for the much higher energy prices in its region compared to Western Europe, Romanian Energy Minister Sebastian Burduja said on Thursday, confirming his Greek counterpart’s words that his country had joined forces with Greece and Bulgaria.

His statement follows that of Greek Energy Minister Theodoros Skylakakis, who noted that Greece, Romania and Bulgaria have joined forces to tackle rising electricity prices in southeastern Europe.

For several months, energy prices in the region have been “significantly higher” than in Western Europe, Burduja pointed out.

He attributed this disparity to several factors, including a dry year, reduced hydro output, interconnection problems and maintenance work on certain lines in Hungary.

“We also provide valuable commercial support to Moldova and Ukraine, which adds pressure to energy prices in Romania. While we recognise this, it cannot continue indefinitely,” Burduja said at the South East Europe Green EPC conference in Bucharest.

“If we are part of a single European energy market, we cannot simply bear the cost and endlessly tolerate prices that are two or three times higher than in the rest of Europe. This is why I will raise the issue with the Council of Ministers”, he added.

At the same time, he reiterated his support for the expansion of the single market but insisted that “if we are to follow the same rules, we must also enjoy the same benefits. Otherwise, some will gain all the benefits, while others are left carrying the costs.”

According to Reuters, Greece’s energy minister said on Monday that the EU’s single electricity market was not working for southeastern Europe and that it would work with Romania and Bulgaria to find a permanent solution to soaring electricity prices in the region.

Greek Prime Minister Kyriakos Mitsotakis is expected to send a letter to the European Commission on the issue this week.

In a statement, the energy ministry said that a joint initiative of the Greek, Bulgarian and Romanian energy ministers would create “a permanent intervention mechanism whenever extreme prices are recorded due to the cut-off of southeastern Europe from the rest of the European energy market”.

(Catalina Mihai | Euractiv.ro)