Government decree
\nno.114, issued late last year, is causing turmoil in Romania even now, two
\nmonths since its adoption. On the one hand, the decree stipulates taxes on bank
\nassets depending on the ROBOR index (the Romanian Interbank Offer Rate, on the
\nbasis of which interests are established on credits in the Romanian currency), amidst
\nsuspicions that banks decide together its value, for their benefit and to the
\ndetriment of the debtors. On the other hand, the same decree 114 provides for a
\n2% tax on turnover for the companies operating in the energy sector. Against
\nthis background, rumors have circulated over the past few days, according to
\nwhich electricity tariffs might go up. In fact, at the end of last week, the
\nvery National Energy Regulatory Authority was claiming that tariffs should be
\nincreased, following the increase in companies’ contribution from 0.1% to 2% of
\ntheir turnover, an increase that reflects in the final invoice for every
\nconsumer, be it domestic or industrial. On Monday, however, the same Authority
\ndecided to keep the current tariffs for the domestic end users unchanged even
\nafter March 1st. Following the implementation of the provisions of Decree
\nno.114, only distribution fees would grow. Gabriel Avacaritei, editor-in-chief
\nof a specialized web-site explains:<\/p>\n
<\/p>\n
\n
<\/p>\n
The regulated tariff that
\nappears on domestic consumers’ electricity bills comprises several components,
\nand one of them is the distribution tariff. So, the Regulatory Authority has
\ndecided to increase tariffs by different percentages, but still close to 2%,
\nfor the distribution operators and, at the same time, issued a press release, confirming
\nwhat it had previously announced, namely that it would establish the price
\nlevel for domestic consumers, even after the enforcement of the new ordinance,
\nat the current level. This is a protection measure for the domestic consumer,
\nbut at the same time a measure that affects in a negative way the rest of the
\nmarket, consumers on the competition market, and in fact, indirectly it affects
\nthe domestic consumer too, because everything that is manufactured and the
\nprovision of all services are based on energy consumption, and increased tariffs
\nfor companies will lead to higher prices for goods and services for domestic
\nconsumers as well.<\/p>\n
<\/p>\n
\n
<\/p>\n
Since its
\nenforcement, Decree no.114, which was received with great hostility by the
\nbusiness environment, has been vehemently challenged by the right-wing
\nopposition, which has called for its abrogation. The Alliance of Liberals and
\nDemocrats, the Social Democratic Party’s junior partner in the ruling
\ncoalition, has requested amendments to the ‘energy’ chapter of the decree.
\nFinance Minister Eugen Teodorovici has defended the decree, saying that the new
\nprovisions support local authorities and help develop tourism and the construction
\nsector. However, Teodorovici has admitted that a broader dialogue should have
\nbeen held before passing the decree. That is why it is now in Parliament for
\ndebates. On the other hand, Prime Minister Viorica Dancila has stated she wants
\nto see changes based on reality, not on political bias. <\/p>\n
\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The Romanian Energy Regulatory Authority has decided to maintain the current tariffs for domestic end users also as of March 1<\/p>\n","protected":false},"author":109,"featured_media":80348,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[34549,39582,38339,39583],"coauthors":[],"class_list":["post-80815","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-decree-114","tag-energy-regulatory-authority","tag-robor-index","tag-tariffs-for-electricity"],"acf":[],"yoast_head":"\n