Energy price caps, extended
In Romania, the energy price cap will further apply after April 1.
Leyla Cheamil, 28.02.2025, 14:00
In Romania, the energy price cap will further apply after April 1.
The government in Bucharest has announced the extension of the electricity and natural gas price cap. This will apply after the end of next month, when the current price compensation mechanism was due to expire. For electricity, the cap will be extended for three months, until the end of June, and for natural gas, the extension will be for one year, until March 31, 2026. This extension will respect the scheme that is currently in force and aims to protect citizens’ incomes, said Energy Minister Sebastian Burduja. According to him, the ministry opted to extend the energy price capping period because, as calculations show, had it been liberalized now, it would have prompted increases in bills ranging from 60% to 100% for 95% of the consumption points. He specified that the one-year extension of the natural gas cap is aimed at restoring deposits for next winter, which would be done at low prices.
Burduja also explained that, in making the decision to extend the cap, it was considered the fact that, in recent months, for reasons unrelated to Romania, prices on international markets have increased significantly, after the transit of Russian gas through Ukraine was halted. The price of gas has increased by up to 65% on the European market and the price of electricity by around 25%. Sebastian Burduja also said that the compensation-cap scheme ensured, according to Eurostat data, the fifth lowest price for electricity and the fourth lowest price for gas in the entire European Union. For natural gas, the maximum price will remain the same for another year, until March 31, 2026, because, the Energy Minister specified, at the end of the current cold season, deposits will reach a very low level, and their refill will mean an increased demand for gas, which will implicitly lead to price increases and much higher bills next winter for the population.
In the meantime, the Ministry of Labor will develop a support mechanism, energy cards or vouchers that will later be granted to vulnerable people as support to cover costs. The Government’s decision to extend the electricity and natural gas price cap was taken on the same day that Hidroelectrica, a state-owned company and the main producer and supplier of electricity in Romania, announced an increase in electricity prices by approximately 60% starting April 1. Minister Burduja recommends Romanians to constantly check the website of the National Energy Regulatory Authority and opt for the best offer. (EE)
