The Romanian state to pay compensations following the lawsuit against GDF Suez Energy

GDF-SUEZ

The Romanian state has to pay compensations of EUR 66 million to the French company GDF Suez Energy, the largest local supplier of natural gas, after the company won a lawsuit against the Regulatory Authority for Energy (ANRE). GDF Suez sued the ANRE when it set the gas prices supplied to the household consumers below the company’s acquisition costs, which led to losses for the French gas company. ANRE has 15 days to appeal the Bucharest Court of Appeal.

The current owners of former Distrigaz Sud supply natural gas to the southern half of the country. In March 2011, GDF Suez and E.ON, supplier to the northern half of the country, owner of the former Distrigaz Nord, requested ANRE – the price regulatory authority for gas supplied to household consumers - to increase prices because costs as they cannot cope with the acquisition costs. The Authority ignored the requests due to social reasons, GDF Suez being thus forced to go to court. GDF Suez, which bought Distrigaz Sud in 2004, buys gas from the producers in the country, OMV Petrom and Romgaz, and imports from Gazprom. The price of gas is indexed according to the international quotation of oil. From late 2008 to March 2011, prices of crude oil rose from USD 35 per barrel to nearly USD 125 a barrel, a sharp increase being recorded in the first three months of 2011.

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