Measures to cap energy prices
In Romania, the population will continue to be protected from the skyrocketing energy price increases.
Ştefan Stoica, 02.09.2022, 14:00
Romanians will continue to benefit from capped prices for electricity and natural gas. The decision was made by the government through an emergency ordinance and will benefit almost 8 million households. The ordinance introduces some changes. Thus, SMEs and public institutions will pay a maximum of 1 leu per kilowatt-hour, a price valid for 85% of the electricity consumed, though. Exempted from the rule are the hospitals, schools and institutions that provide social assistance. These will pay up to 1 leu kilowatt-hour for all the electricity consumed.
For natural gas, household customers will pay capped bills only if they did not exceed 50 thousand megawatts per hour last year. The electricity price cap will apply to household consumers until August 31, 2023, for a consumption of up to 255 kWh per month. For electricity consumption that exceeds this level, the price is set by each supplier. On the other hand, intermediaries that will sell energy at very high prices, due to a large-scale sales and resales chain, will be fined.
Energy Minister Virgil Popescu has details: The famous scheme of transferring electricity from one trader to another before reaching the supplier, in order to artificially increase the price of electricity or natural gas, will be severely punished this time, because it is not normal to have this type of behavior in the market. Practically, such unfair actions will be sanctioned with a fine of 5% of the turnover, an instrument now available to the Romanian Energy Regulatory Authority – ANRE.
A solidarity tax will be levied on electricity companies, the money going into a special fund for energy. Thus, a maximum price of 450 lei per kilowatt has been set for the producer, and everything that exceeds this value will go to the special fund for energy. In the case of intermediaries, they can keep 2% of the profit, and the rest is considered a solidarity contribution. The impact on the budget of the measures provided for in the government ordinance is estimated at one billion lei per month (200 million Euros), and if these amounts fail to be collected from the newly established solidarity fund, they will be supplemented with money from the state budget.
The Prime Minister Nicolae Ciucă hopes that, through the recently introduced mechanisms, speculative behavior on the energy market will be avoided. The opposition Save Romania Union – USR harshly criticizes the energy ordinance. ‘This whole capping scheme creates chaos and slowly but surely destroys the energy sector and the Romanian economy, USR warns. According to the party representatives, the new changes remove from the capping scheme many companies that have benefited from it until now, which will lead to restricted activity, higher prices in the economy and unemployment. (LS)
