“The energy market behaves as if it is immune, while most companies are revising their budgets downward, the recession is knocking at the door, banks are shutting their doors, and analysts are talking about two years of crisis and five years to recover,” Stroe added.
According to market players interviewed by Business Standard, the electricity trader market will tumble in 2009, due to the financial crisis, which will drive small companies to ruin, due to their incapacity to manage risks and face financing problems, because of a drop in consumption and client portfolio. “In the end, there will be 10-15 suppliers on the energy market,” said Stroe.
He added that the Romanian Energy Regulatory Authority (ANRE) should be very careful about what electricity tariffs to approve. Ion Lungu, General Manager of CEZ Trade and President of the Association of Electricity Suppliers in Romania (AFEER), said that ANRE has a huge responsibility to protect the citizens. “I hope it will make the right decision,” Lungu added.
Jack Cutisteanu, General Manager of the second-largest private energy supplier Petprod, warns that a rise in energy price in 2009 by some 15 percent will put additional pressure on companies which are already forced by the crisis to cut staff and activities.
