Romania: The energy market should undergo stress tests, just as the National Bank does with commercial banks

The energy market should be subjected to stress tests to see how it works in certain situations so that consumers are protected from price increases, said Dumitru Chiriţă, the president of the National Energy Regulatory Authority (ANRE) during the hearings in the parliamentary commission for ANRE activity.

“The electricity sector is operating under a 2004 trading code. We are in 2017. Changes have been made over time, but I think it is necessary today to revise, update this trading code and create a new model market, so that these events that have happened in the last year (price increase – no), but not only, will not be repeated,” Chiriţă said, according to Agerpres.

He pointed out that the market should be tested to see the reactions in different situations so that consumers are protected from price escalation.

“I would like to make a point in primary legislation and develop in secondary legislation the need for stress tests, such as those used by the National Bank with commercial banks, and these stress tests to be induced in the market to see how the market reacts , so that the consumer is protected from market abuse by traders who take advantage of certain things on the market and get undeserved advantages,” Chiriţă continued.

According to him, the suppliers of the last instance, ie the suppliers of household consumers, have not been interested in buying the cheapest energy from the market, waiting for ANRE to recognize the costs in the final tariffs.

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