Who’s paying the energy bill?

As energy bills went up and further rises are likely, authorities are considering measures to alleviate the impact on end-consumers.

Corina Cristea, 30.09.2021, 13:50

The representatives of the National Energy Regulatory
Authority were summoned for a hearing in Parliament to shed light on the
increases in the electricity and natural gas bills in Romania. The
parliamentary committee inquired about the causes of the price hikes after the
liberalisation of the electricity market on 1st of January this year
and of the natural gas market on 1st July last year.

The rise in prices was to be expected, but not to the
level we’re seeing today, say the Authority representatives, who also emphasised
that European regulations are preventing state authorities from interfering
with price setting. They are saying that electricity bills may decrease by 15%
if the green certificates and the cogeneration fee are covered by the state
instead of consumers. This measure may be temporary, for six months, to see how
the energy market is behaving. At the moment, the electricity bills of all
end-consumers in Romania include, apart from the costs of the energy used, the
cost of green certificates for the production of renewable energy and a
contribution to high efficiency cogeneration. The parliamentary committee asked
the representatives of the National Energy Regulatory Authority to present more
data in the coming period about, among others, the regulations the Authority is
considering to diminish the effects of energy price hikes.

Energy minister Virgil Popescu was also asked to
appear in the Chamber of Deputies a few days ago to explain the rise in
electricity and natural gas costs. He explained that this is happening not only
in Romania, but globally, and that the European Commission is preparing a set
of recommendations for member states to compensate for the rise in electricity
bills. Before the debates in the Chamber
of Deputies, minister Virgil Popescu also appeared before the parliamentary inquiry
committee, where he gave assurances that the government is working on an
emergency order to help over 60% of the population with the payment of energy
bills. He said a state aid scheme is being considered for small and medium
sized companies that may come into effect from 18th November.

The National Energy Regulatory Authority is advising
electricity consumers who are now benefiting from universal service prices to
sign a new contract by the end of the year, because the cost of this service is
expected to go up from 1st January. At the moment, over 57% of
clients have contracts on the competition market, which puts Romania in first
place in the European Union with respect to the accelerated pace of transition from
the regulated market to the competition market. (CM)