Taxation of Gas Producers
Brief:
ROPEPCA needed to reverse these damaging regulations by mobilizing political and business stakeholders to highlight the negative economic impact of price caps.
Solution:
Legislative Pressure
– Developed amendments and position papers to challenge OUG 114.
– Engaged MPs, Government officials, and ANRE (Energy Regulator) in one-on-one discussions.
Public Awareness & Advocacy
– Launched a media campaign exposing the negative effects of price capping.
– Used industry data to demonstrate the damage to the Romanian gas market.
Winning the Debate
– Participated in parliamentary debates and successfully lobbied for change.
– In 2019, with a new government in place, the 2% tax was eliminated and price caps were lifted.
Results:
- Price caps removed, restoring competition in the gas market.
- 2% tax eliminated, preventing billions in losses for the industry.
- Secured a regulatory environment that encourages investment in Romanian energy.
Impact:
This was a textbook case of how strategic public affairs and communication can drive regulatory change and protect industries from damaging policies.
- Client: Romanian Petroleum Exploration and Production Companies Association (ROPEPCA)
- Year: 2018-2019
- Challenge: According to the OUG 114/2018 the gas producers had to cap the price for regulated gas to 68 lei/MWh until 2022, but also imposed an increased level of contribution to the license holders to 2% of the turnover achieved by the economic operators from the activities that are the object of the licenses granted by ANRE.