Laurentiu Urluescu, President of Romanian Energy Suppliers Association: Best Way to Keep up Sustainability in Romania
Laurentiu Urluescu – President of Romanian Energy Suppliers Association, provides some valuable solutions for a competitive and sustainable energy market in Romania. Established at the end of 2006, the Romanian Energy Suppliers Association (AFEER) is a professional, non-governmental, independent and apolitical organization, being the only professional association dedicated to electricity suppliers in Romania. AFEER manages to gather at the same table companies that naturally compete in the market, but which share their opinions and the problems they are facing, in the desire to solve them.
Although after graduating in 1995 from the Faculty of Power Engineering at the Polytechnic University of Bucharest, Laurentiu Urluescu opted for a technical path in the field of electricity after reaching a maximum level of technical coordination, he decided to make a career change and in 2004 to get involved in the commercial side.
Taking advantage of the implementation of the new electricity market structure in Romania, he dedicates himself to the implementation of a market mechanism for balancing production with consumption and launches the concept of a “balancing market” in Romania.
After its successful implementation, in 2007 Laurentiu Urluescu moved to the private sector where he developed both personally and professionally. During his career he had the opportunity to work in both the state and the private sector, to represent companies and the country in numerous international working groups and to contribute to the implementation of a fair energy market in Romania.
Since 2009, Laurentiu Urluescu has been leading the GEN-I group’s activities in Romania, and in 2021 he was elected President of the Romanian Energy Suppliers Association – AFEER.
Dear Laurentiu Urluescu, what is the role of the Romanian Energy Suppliers Association? What are the most important objectives and the levers at your disposal to achieve them?
Laurentiu Urluescu: The main role of the association is to advocate before the authorities a common view of its members on electricity and gas market regulation. Thus, we aim to be a reliable partner for public authorities and other institutions active in the electricity market and to advocate for the consolidation of a fair, transparent and highly liquid market, in line with international standards for established energy markets.
The association itself is designed to ensure an equal voice for members representing large companies, but also for new companies just entering the market in decision making and operations.
Over time, the association has sought to continuously develop and, in addition to its main role, to carry out related activities designed to support and complement the objectives it has set itself, such as the consumer information campaign entitled “An informed consumer is a protected consumer”, the organization of an “Energy Fair” where consumers can compare “on the spot” the offers of energy suppliers and, why not, a training activity in the field of energy trading and supply called the AFEER Academy.
AFEER has managed to bring to the same table companies that are natural competitors on the market, but which, under the patronage of the association, share their views on the regulations they face, with the desire to solve them at the macroeconomic level.
We believe that through this total transparency at the discussion table, addressing serious issues related to matters that may directly influence the members, but also the smooth functioning of the market in general, a professional association becomes a competent, specialized and reliable partner for dialogue with the competent authorities.
What are your personal responsibilities as President of AFEER?
Laurentiu Urluescu: As President, it is my responsibility to represent the association both externally and internally and to coordinate discussions within the association, so that we can identify topics and positions common to all members. It should be noted that AFEER brings together 45 electricity traders and 17 natural gas traders – private and state-owned, Romanian and foreign companies. Many of these members also carry out other related activities, such as energy production, storage or consumption, which further complicates the process of harmonization of interests.
From experience, I have found that the most effective approach is one that supports the development of a free and fair market, governed by simple and clear rules.
You have been active for more than 30 years in the energy sector and for more than 12 years with AFEER. You have significant experience, which allows you to make an accurate assessment of the environment in which you work. Following an overview of the Romanian energy market, what are the main conclusions you can share with us?
Laurentiu Urluescu: Romania has had a diversified production mix since before 1990, which has protected us from many security challenges.
From the energy market point of view, we were champions in implementing the most liquid spot market in the region, but unfortunately, we have not performed since then, and lately we have managed to destroy the liquidity that we have been struggling to develop over time.
We are now in an illiquid market, highly dependent on other regional markets, which are somewhat more expensive. Changing regulations in an already functioning market is tantamount to changing the rules in the middle of the game, which has a significant impact on existing market participants and investor confidence.
Whether we are talking about 2012, 2018, 2021 or 2022, changes to energy market legislation without an impact study or consultation of market specialists have always had a strong negative impact.
How does the AFEER cooperate with national and regional institutions/authorities, associations and economic operators in the energy sector, in order to ensure a normal and fair functioning of the energy market, for the benefit of investors and end customers?
Laurentiu Urluescu: The collaboration with the main Romanian authorities is good, AFEER being active whenever draft documents are published, and I was pleasantly surprised to see that the professional opinion of our association is taken into account.
As an example, I can tell you that last year we had more than 35 strongly reasoned opinions submitted to ANRE alone on various topics.
We would like to take this opportunity to re-emphasize our repeated request to the authorities to publish any new regulation in a transparent procedure and to ensure a reasonable timeframe for feedback from the stakeholders involved.
We have also extended our international collaboration by signing partnership protocols with similar associations in the region, with whom we exchange views and practical experiences resulting from the application of the new rules in their respective markets.
At the same time, we are actively working with the European institutions, with the sole aim of having a fully functional, easy to access and use energy market in Romania, focused on the products required by the market.
What are, in your opinion, the most important challenges currently facing the Romanian energy sector during the transition to clean green energy, in particular the Romanian electricity and gas suppliers?
Laurentiu Urluescu: I think we are perhaps at the most difficult moment for the Romanian energy market; the global energy market is changing rapidly and significantly, and we may miss something.
At international level, a new energy mix has been discussed for years in coordination with increased storage capacity, in our country many investments are announced, but not many are implemented – new energy production has just started to be put into operation, many years later than in other European countries. In the services market, the concepts of differential tariffs, VPP, demand response, load control, load shaving have long been implemented in Europe; here we are stuck in regulations that most of the time make it impossible to implement them. As far as the market is concerned, we have unfortunately set a record: from the most liquid market in the region, we have ended up with a massive lack of liquidity in a relatively short time, which has affected all market players, from producers to consumers.
I believe the main challenge is to change the way we think about energy; we took a first step about 20 years ago when the balancing market was introduced and producers had to change the way they managed their production from fuel focus to market focus.
This time it will be a more profound change, because we have a fundamental shift in both generation (a large percentage of renewable sources in operation – difficult to control or often uncontrollable, decentralized and unreliable) and electricity consumption directly (through efficiency, electrification or changes in the substance of industries) and indirectly (through self-generation).
What optimal solutions does AFEER propose for a competitive and sustainable energy market in Romania?
Laurentiu Urluescu: To restore liquidity and competition in the market, the solution is very simple: full liberalization and the elimination of any additional fees, together with a firm declaration that these fees will no longer be applicable retroactively. Now, at least at the retail level, as long as there are price caps, we cannot talk about a market; it is just another form of regulation.
On the retail side, it is very important to increase consumer awareness of the energy market. In my opinion, simply informing consumers is not enough; it is necessary for the consumers to be aware, first of all, of their consumption and then of the ways they can use to improve their energy comfort.
Through GEO 6/2025, the Romanian Government has decided to extend the electricity and gas price caps. Thus, for electricity end-consumers, the support period has been extended by three months, from April 1, 2025, to June 30, 3025. For natural gas end-consumers, the period has been extended by 12 months, from April 1, 2025, to March 31, 2026. What is your opinion on the regulation of energy prices in Romania?
Laurentiu Urluescu: We have conveyed to the authorities our view that any prolongation of the current scheme would only lead to a postponement of the inevitable; worse, postponing it until after the second quarter (the period when, statistically speaking, the lowest prices of the year occur) will lead to an even bigger shock for end consumers at the time when they will have to pay the market price; and this is especially true for household consumers who now benefit from the capped price of RON 0.68/kWh, a completely unsustainable tariff (of which the energy component itself is about RON 0.01/kWh).
The European Commission’s new draft on competitiveness has sparked a lot of criticism, even in the Romanian business environment. Even the Romanian energy minister, Sebastian Burduja, underlined the negative effects of the European Green Deal, which risks losing competitiveness and economic relevance. What is the approach of AFEER members on this topic?
Laurentiu Urluescu: We believe that “moderation” is the key word in everything. In our opinion, the European Green Deal has had both positive and negative effects. The positive ones relate mainly to the development of renewable electricity generation; however, if this policy is pushed to the extreme, then it is indeed possible that European businesses may end up losing their competitiveness on a global scale.
Some energy experts and politicians suggest that new EU climate laws are contributing to higher energy prices. What measures could be taken to counter prohibitive energy prices?
Laurentiu Urluescu: It is already a fact that climate legislation is contributing to higher energy prices. Although many pretend not to see it, we must not forget that any change in regulations, tariffs, taxes, contributions or certificates along the production – transmission – distribution – trading – supply chain will ultimately be reflected in higher prices for the end consumer. Either directly (by increasing a component of the energy bill) or indirectly, by limiting access to a certain type of energy/service/etc.
Romania benefits from one of the most balanced energy mixes in Europe, but is currently facing, like most countries in the region, challenges related to EU regulations, security of energy supply etc. How do you think Romania can keep on the road to sustainability, in competitive and climate neutral conditions, without contradicting European legislation?
Laurentiu Urluescu: Romania’s advantage is that it starts from a balanced mix, which many other countries in Europe do not have and need to develop.
I believe that encouraging the development of investment while maintaining balance in the production mix is the best solution.
For example, there is currently an appetite for investment in renewable energy, but it also comes with some difficulties (difficult to control, unreliable, unpredictable etc.). If investment is also encouraged in energy storage sources, many of the disadvantages disappear.
