Subsidised energy bills
Most Romanians will not be affected by the steep rise in energy prices this winter, authorities say
Eugen Coroianu, 28.10.2021, 13:50
The Romanian authorities have taken measures to protect the population from the impact of the uncontrolled increase in energy prices on the eve of winter. On Wednesday, the Chamber of Deputies approved, as the decision-making body in this matter, the Government’s emergency ordinance providing for the subsidisation of electricity and natural gas bills. The normative act establishes a support scheme for domestic consumers, hospitals, educational institutions, town halls and NGOs.
A support scheme has also been approved for SMEs, which will only pay the price of energy as such, without distribution or transport fees. The measures will be in place starting November 1st until March 31st next year. The interim Energy Minister, Virgil Popescu, has stated on the public radio station that these measures will allow a large part of Romanian households to pay the same electricity and gas bills as last winter. He explained that all domestic consumers will have the price of electricity capped at 1 lei / kilowatt and 37 bani / kilowatt for natural gas, all taxes included.
In addition, those who consume up to 300 kilowatts per month, with an additional 10% margin on electricity, and up to 200 cubic meters of natural gas, with the same margin, will also benefit from subsidies. According to estimates, six million households, out of a total of eight million, will benefit from subsidies for electricity. Also 2 million household out of 3 will get help for their gas bills.
Virgil Popescu has also stated that, in order to benefit from this support, citizens aren’t supposed to do anything. Invoices will be issued directly with the announced adjustments. He pointed out that energy the suppliers who know who their domestic customers are and what their consumption is, will automatically apply the respective discounts and will later recover their money from the Ministry of Labor.
There is also a funding scheme for small and medium-sized enterprises, micro-enterprises, family businesses, sole proprietorships, free lancers and liberal professions. For all of them, all fees will be deducted before issuing the invoice: of transport, distribution, excise, green certificates, cogeneration vouchers, including, in the case of natural gas bills, the fees for injection and extraction from storage. Basically, only the actual cost of electricity and natural gas will be paid, the energy minister has said.
He has given assurances that there will be no budget issues in applying the law. In the case of District Heating Power Plants, the Government will allocate to town halls a subsidy to cover the increase in the giga-calorie price of half of the resulting difference between the purchase price and the capped gas price. (MI)
