Romania doesn't plan to raise natural gas or electricity household bills until July 1 despite calls from Romanian gas distributors citing higher gas import costs, news agency Mediafax reported Romanian Finance and Economy Minister Varujan Vosganian as saying Thursday.
"From our talks with the distributors, this hike is unsustainable. We don't plan to raise prices until July 1," Vosganian said during a seminar on energy issues.
Gas distributors E.ON Gaz Romania, the local unit of Germany's giant E.ON AG (EONGY), and Distrigaz Sud, majority-owned by French utility Gaz de France (1020848.FR), have repeatedly urged regulators to increase gas prices up to 19% to cover losses from soaring import prices.
In its most recent adjustment, the Romanian energy regulator increased household gas prices 8.5% Feb. 1, due to higher international prices.
Electricity prices are expected to rise July 1 due to higher production costs over environmental requirements, Nicolae Opris, the deputy head of the country's regulator, said during the same seminar
"We'll see a further price adjustment starting July 1, and the costs entailed by the CO2 emission reduction might add some pressure," Opris said.
The European Union, which Romania joined in 2007, has instructed member states to gradually reduce their carbon dioxide, or CO2, emissions 20% by 2020.