New measures to cap energy prices
The Romanian Government has passed a decree stipulating new measures in the energy sector
Mihai Pelin, 26.01.2022, 14:00
The Government has introduced new measures to help
household consumers and SMEs cope with the increase in energy prices. The
measures will take effect only over the next two months. By means of an
emergency decree, the Government introduced a new quantum of fines that
authorities can hand out to energy distributors who miscalculate bills, of up
to 40 thousand Euro. The law also comes with a new formula for subsidizing and
capping energy bills, applicable to citizens and businesses. The measures
cannot be applied in retrospect for the month of January, as PSD requested.
According to an approval issued by the Justice Ministry, household users will
be given larger subsidies, of up to 0.291 lei per kWh and up to 40% of the
price for natural gas. At the same time, the price for both electricity and
natural gas will be capped. Prime Minister Nicolae Ciucă explains:
Household users will pay a maximum of 80 bani for
kWh and 31 bani for natural gas, irrespective of consumption. If household
consumption is below 500 kWh or 300 m3 of gas, users will pay 68
bani per hWh and 22 bani for m3 of gas, with all taxes included.
In turn, Energy Minister Virgil Popescu explained
how energy bills are calculated while factoring in the new subsidy and capping
regulations.
When consumption stood at 500 kWh prior to
increasing the ceiling, people paid 1 Leu per kWh. Now that the ceiling has
been decreased, people will pay 80 bani or 68 bani, wherever the discount
applies. The total value of the bill stands at some 300 Lei.
The Government decree also provides for discounts
for non-household users, for whom prices will be capped at 1 Leu for
electricity and at 37 bani for natural gas. The measures don’t apply to large
energy consumers, for instance heating power plants, which will be provided
with state aid under a programme approved by the European Commission. The
Government hasn’t yet decided what will happen starting April 1. The new
measures will be discussed at the level of the ruling coalition. Some lawmakers
have suggested a rollback to the regulated market for a few months. Many
Romanians have recently complained about excessively high electricity and gas
bills, after part of the distributors did not apply the new cap and subsidy
standards, which came into force on November 1, 2021. (VP)
