State-affiliated fossil fuel power generators in Romania aim to recoup EUR 160 million from the government under a price-regulation strategy
The Romanian Ministry of Energy is grappling with ambiguous conditions regarding reimbursement requests for CO2 certificate costs from three major fossil fuel power producers: OMV Petrom, Romgaz, and CE Oltenia. These companies have collectively requested a reimbursement of approximately EUR 160 million (RON 830 million) for the cost of CO2 certificates purchased for electricity produced and sold under the price-capping system.
According to sources, since these power producers have not sold electricity above the capped price, the Ministry is expected to reimburse the full cost of these CO2 certificates without deducting any surcharges that would apply if electricity were sold above the cap. However, the precise reimbursement process and timing remain unclear due to the lack of clarity in the price-capping mechanism.
This reimbursement request comes on top of existing debts estimated at around EUR 1 billion owed to energy companies by power suppliers under the same price-capping system as of late 2024. The price-capped price for the power produced and sold varies between RON 450 and RON 400 per MWh, depending on the period.
It is important to note that under the price-capping mechanism, both power producers and power suppliers are entitled to be reimbursed for the full price of CO2 certificates purchased for power subject to price-capping. However, the procedure for reimbursing these costs remains unclear, complicating the handling of these reimbursement claims by the Ministry.
The information for this article was obtained from sources familiar with the matter consulted by Economica.net. The article can be accessed by becoming a Romania Insider member or by signing in.
The potential impact of these reimbursement claims on the Romanian energy market has not been detailed in the article.
The Ministry's future actions in reimbursing the CO2 certificate costs to OMV Petrom, Romgaz, and CE Oltenia, totaling around EUR 160 million, could influence the financial status of these fossil fuel power producers. Amidst the existing debts of approximately EUR 1 billion owed to energy companies by power suppliers, clarity on the reimbursement process and timing is necessary for the energy industry to plan ahead.
