Aside from providing a varied range of products and services, Competition provides consumers with competitive pricing, as energy operators are stimulated into competing for new customers. As a result, the more market competition increases, the more consumers benefit from cheaper and better goods or services.
These principles should apply to the energy market as well. But the planned restructuring of energy production into two major companies is anything but a measure intended to stimulate competition. At least this is what the Competition Council thinks, who fears that this concentration of production could lead to discretionary prices, shrinking competition, to the detriment of all types of consumers.
* The Competition Council believes that the restructuring of the energy production, by creating two big energy companies will affect corporate budgets and household spending alike
The council of competition has serious doubts that the restructuring of Romania"s energy production into two energy companies is an approach that is compatible with a normal competitive environment.
More to the point, the concentration of energy production into the hands of two companies could seriously affect corporate budgets as well as household consumers, by the pricing that the two companies could impose on suppliers and consumers.
Bogdan Chiriţoiu, the chairman of the Competition Council, said the following for BURSA: "We have requested that the officials of the two companies, - Electra and Hidroenergetica - explain how these two companies would be more efficient and how this would benefit consumers. Basically, we have to see what practical benefits would all consumers draw from this restructuring. The companies claim that the restructuring and streamlining would lead to lower prices. At the current stage of our analysis and investigation, the possibi
