THE LIBERALIZATION OF THE ROMANIAN ENERGY MARKET: OPPORTUNITIES AND CHALLENGES

References: 14th International Multidisciplinary Scientific GeoConference SGEM 2014, www.sgem.org, SGEM2014 Conference Proceedings, ISBN 978-619-7105-19-3 / ISSN 1314-2704, June 19-25, 2014, Book 5, Vol. 3, 471-478 pp

ABSTRACT
The liberalization of the Romanian electricity market has already begun back in the first semester of the year 2000, taking place gradually so that starting with the 1st of July 2007 all electricity consumers, regardless of utilization, consumption patterns or quantities have the possibility to choose their supplier of preference. Based on the Memorandum of Understanding approved by the Romanian Government, from January 2014 - in accordance with the obligations undertaken in relation to the IMF, the World Bank and the European Commission – the Romanian electricity market has become completely liberalized eliminating regulated electricity prices for final non-household consumers. Theoretically, on a liberalized market competition is supposed to result in a decrease of the final consumer price, the higher efficiency of suppliers and more consumer-oriented services. In consequence liberalization should bring about several benefits for the Romanian companies. In practice on the other hand, the dysfunctions of the new market, the lack of information and restrictive actions at government level have all lead to distortions of the market conditions and sometimes measures defying common sense, with negative impact on the final consumers as well as the energy producers. The aim of the paper is to analyze the opportunities offered by the liberalization process and the possibilities of achieving an integrated European energy market, considering the risks and benefits contained within.

Keywords: energy market, liberalization