The National Energy Regulatory Authority (ANRE) has published, as expected, the decisions by which three gas suppliers, Engie, Cis Gaz and CEZ Vânzare, waive, at their request, the status of supplier of last resort (FUI ) of natural gas. Therefore, only Tinmar, Premier and Electrica would remain FUI
However, the ANRE order with no. 125, regarding the changes brought to the supply regulation in the last resort regime, which will lead to the fact that, from the middle of the month, we will most likely have Engie and E.On as gas fuels, even if the companies do not want that .
What’s really going on
In the face of the large number of gas suppliers abandoning business and customers, but also the announcement of a large supplier of the population, Engie, which is also a supplier of last resort (FUI), that it wants to give up this status, ANRE has changed regulation for FUI.
The Authority decided that five FUIs of gas would be designated at their request, stating that they must have a cumulative market share of 70%, relative to the total number of final consumers. If no one wants to be FUI, they will be appointed by ANRE, respecting the 70% criterion. However, in this situation, Engie and E.On become FUI of automatic gas, even if they do not want this for the simple reason that, without them, this percentage of 70% would not be reached.
As such, ANRE has already published on its website, on December 8, the announcement of “the organization of the selection process for the designation of the last resort suppliers of natural gas”. Also on December 8, until the end of the day, ANRE was waiting for the offers of the suppliers, which also include the FUI price proposed by each one. If Engie and E.On do not submit bids, they will be appointed by ANRE FUI de Gas. The new FUIs will be appointed on December 14.
What’s the matter, why doesn’t anyone want to be FUI
FUI status can bring more hassle than current supplier benefits under current market conditions. In theory, it should be an activity that they should not run away from, because the high price of FUI (723 lei / MWh at Engie, now, much more than the customers paid for the suppliers who gave up) which is transmitted to ANRE, covers all the costs. In practice, however, with the current turmoil in the gas market, it is no longer an advantage to be FUI. Here are some reasons:
Taking over a significant number of customers, with an unknown consumption history, means for FUI that it has to buy additional quantities of gas from the market, without this having been anticipated before. He will buy them at the high market price with close delivery in the future, where he can, (that’s why the FUI price is higher) but he doesn’t know exactly how much to buy, because he doesn’t know how long the customer will stay with him before leaving to another supplier, and the current FUI remains with gas bought at a high price. For tens of thousands of customers taken over, with additional consumption and related imbalances to be covered, there is no risk of neglect.
Secondly, as a result of the customer protection mechanism during the winter, including the final final price is capped. Therefore, even if it buys additional quantities from the market at a high price, FUI cannot invoice the customer taken over from another supplier at more than 250 lei / MWh, the price of the gas goods, without tariffs and taxes. By law, he will get his money back from the state, but all the suppliers are afraid that they will receive the money late. In addition, they fear that part of the costs will not be covered by the state, through the very mechanism of the law.
Engie has already taken over 65,000 customers
Engie is named FUI with the lowest price in December, after being FUI in November. In this capacity, the company has taken over (or is about to take over) about 65,000 customers from competing suppliers who have given up. These are Progaz, GecaBuild, Tulcea Gaz, Arovi, Restart, Salgaz, Mehedinți Gaz. Oligopol and Electric & Gas Power Trade will follow.
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