E.ON Energie Romania 1Q Gas Sales Up 3.4% YY, To 12 Mln MWh

05.16.2011 By Andrei Circhelan

Gas supplier E.ON Energie Romania sold 3.4% more natural gas in the first quarter, compared to the same interval of 2010, but the low sale price brought additional costs of more than 240 million lei (EUR58.54 million), the company told MEDIAFAX.

"Throughout 2009 and 2010, additional costs were higher than RON400 million. This situation continued in the first quarter of 2011 as well, when these costs reached above RON240 million," the company said.

In reaction to this development, the company said the situation needs to be revised urgently.

"It is unsustainable and unacceptable for E.ON's gas supply activity to run on loss," the company representatives said.

According to the company, one of the main challenges faced on the market is the fact that the purchase price for gas is not covered by the regulated end-prices for captive consumers.

Regulated prices are set by Romanian authority ANRE, targeting household consumers.

E.ON sales rose 3.4% in the first quarter, to 12 million MWh, from 11.6 million MWh of natural gas in the same interval of 2010.

The bulk of volumes sold, namely 10 million MWh, went to small firms and household consumers.

E.ON Energie Romania is a supplier of electricity and natural gas, serving 1.5 million consumers of natural gas and 1.4 million consumers of electricity in northern Romania.

The company is a subsidiary of German utilities group E.ON, active in Romania since 2005.