Recording an ongoing decline in the public and private sectors in the bid to reduce the indebtedness level and a nearly zero increase in the households’ revenues for non-food goods in 2012, the household consumption in the Eurozone is expected to slide by 0.7 percent in 2012 and also the business investments to plunge by about 1.5 percent.
As a result, the demand for energy and natural gas is expected to stagnate or to slightly increase (by less than 0.5 percent) in 2012 and 2013. Ernst&Young considers that it is possible to maintain the final consumption prices at a low level because of the political pressure to keep prices accessible, a phenomenon the companies of utilities will have to get accustomed to.
“For many energy and utilities companies, the survival amid recession, as well as the subsequent prosperity, depends upon the declining short term risks and the long term development opportunities. It is more important than ever for these companies to keep an eye on the governmental policies, given the fact that the pressure to maintain energy prices accessible grows stronger than ever,” says Saulius Adomaitis, partner and leader of the Department of Assistance in Affairs of Ernst&Young Romania.
The progress Romania achieved in the last years in the renewable energy domain was the result of the legislation of the green certificates. But from now on, the plans of investments announced in the energy sector target the traditional sectors of the production in thermal power plants and hydro power plants. In order to stay in the game and be able to attract the necessary investments, Romania must start designing coherent programs turning these investments more attractive and at the same time continuing supporting the investments in new technologies such as energy services and services of computerized energy networks.