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GEO 114 diminished the gas market liquidity and increased prices for companies
The amount of gas available to non-household customers on centralized markets has significantly decreased, which has led to price increases, as producers have been obliged, as of 1 May 2019, to sell gas to households and thermal energy on the balancing market at the price of 68 lei, in the context of the implementation of the new legislative provisions imposed by Ordinance 114/2018.
In the period of January 2019 – April 2019, Transgaz purchased more expensive gas than the weighted average market price. Transgaz also acquired prices at the beginning of this month a volume of 16,470 MWh (39% of total volume traded on short-term centralized markets between May 1 and 9) at prices higher than the average by about 5.5%, say sources quoted by financialintelligence.ro.
Transgaz conducts balancing actions by acquiring or selling short-term standardized products on a trading platform according to the provisions of Regulation (EU) No.312/ 2014 establishing a network code for balancing gas transmission networks.
“As to the share of transactions concluded by Transgaz SA in the total volume traded on short-term centralized markets in the period 1-9 May, it should be noted that there was a significant decrease in the liquidity within these markets in the context of the implementation of the new legislative provisions imposed by Ordinance 114/2018”, Transgaz officials say.