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Small companies unhappy with not getting access to cheaper domestic gas

08.10.2009, 23:41 15

Small entrepreneurs say the decision to provide the chemicalindustry and the electricity generating one exclusively with gasfrom domestic production during the June-October period is not fairfor their businesses, especially since as a result of the crisis,the locally produced gas is enough to cover nationalconsumption.
On the other hand, though, groups such as Interagro, run bybusinessman Ion Niculae, which owns six chemical plants, orAzomures benefited from this move.
The Competition Council is siding with small entrepreneurs and saysthe move equals state aid, particularly in the case of chemicalplants. On the other hand, chemical industry officials say theyneeded this "miracle" to survive.
Through the set criteria, SMEs were excluded, as only largeconsumers were eligible.
Thus, during the June-October period, the chemical industry andelectricity and thermal energy producers could buy gas only fromdomestic production, namely from Romgaz and Petrom, without beingforced to pay for the weight of imports in consumption. In Romania,gas is sold at a basket price, including both the gas import sideand the internal production one. At the same time, gas fromdomestic production is sold domestically at a price recommended bythe Romanian energy watchdog ANRE, a price that is half of that ofthe imported gas. Under the circumstances, the benefits of a moveallowing large consumers to buy gas only at the price of domesticproduction are obvious.
"(...) Gas from domestic production must be provided to absolutelyeverybody, as Romgaz and Petrom are now producing more gas than isneeded. Consumption has plunged. What is happening now is notfair," says Vladimir Cohn, owner of Ecopack Ghimbav and EcopaperZarnesti, shareholders in Celhart Donaris Braila.
Florin Pogonaru, chairman of the Association of Businesspeople inRomania (AOAR), also supports the need to extend this move to allcompanies.

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