Scorching days and energy prices
The recent heat wave has led to increased electric power consumption which will push up prices of electricity bills, against the backdrop of the energy market liberalization.
Roxana Vasile, 12.08.2021, 02:00
The heat wave that has recently affected Romania has automatically led to an increase in electricity consumption in households. The main consumers are, of course, air conditioners. Data provided by “Transelectrica” National Electricity Transmission Company show that the consumption difference has been covered by imports, the average amount reported in recent weeks approaching 1,000 megawatts per day. The most important sources of electricity production are the hydropower plants, followed by coal-fired power plants, the Cernavoda nuclear power plant (southeast) and the hydrocarbon-fired plants. Photovoltaic systems, wind farms and biomass are only a small part of the Romanian energy production.
Actually, Romania does not have production capacities for cheaper energy because, in the last six years, no new, modern unit has been put into operation. And things are not likely to change, not even in the short term! That is why, the only thing Romanians can do to avoid paying huge bills, is to be very careful about consumption. Electricity prices have gone up across Europe amid high demand from the economic sector, which has been re-launched after the pandemic. Moreover, the electricity and natural gas market has been completely liberalized in Romania since July 1, and prices for household consumers have significantly increased.
According to the National Institute of Statistics, the annual inflation rate reached 5% in July, confirming the recent statements of the Central Bank governor, Mugur Isărescu. And the central bank expects inflation to rise to 5.6% at the end of the year. Statistics show that the highest price increases were reported by non-foods, prices growing by almost 8%. Also very big price increases were registered for energy (about 25%), gas (over 20%) and fuels (13%), which, in turn, generate price hikes for most goods and services.
The Liberal PM Florin Cîțu says the situation should not cause concern and that the prices increase is temporary, against the background of the permanent increase of the populations income. The opposition Social Democratic Party – PSD contradicts the PM, claiming that in the context of the wild liberalization of the energy market, which has led to explosive increases in electricity and natural gas prices, the situation of vulnerable consumers (pensioners, low-wage workers or families with many children) got even worse. According to PSD, which quotes the National Institute of Statistics, 41% of households in urban areas and 36% in rural areas have fallen behind on utility bills by several months. Therefore, they call for the urgent adoption of a Law of the vulnerable consumer. (LS)
