Romanians pay record-high energy prices
Utility bills paid by Romanians have seen the highest increase in the European Union
Roxana Vasile, 27.09.2022, 02:00
According to a survey by Friedrich-Ebert-Stiftung Foundation Romania has the highest increase in utility bills in European Union. Utility prices in Romania are presently 124% higher than the reference value in 2015 whereas the European average stays around 110. At the same time the inflation-consumption price ratio stays around 115%, which means the Romanians are shelling out more money to cover all their expenses.
The sad daily reality is confirming the statistics, which unfortunately arent of much help in this case. And the arrival of the cold season has increased the worries of the Romanians about the soaring prices in electricity, gas or in some cases firewood. There is only one alternative: no money, no electricity and household heating.
On the other hand, Parliament debates on the latest government ordinance on capping electricity prices are going on. The ruling Social-Democrats say the
bill must be amended and are asking, among other things, for the capping to be based on this years consumption and not on the one last year, as the document now stipulates to the disadvantage of many Romanians. The co-ruling PNL, wants the capping to be based on the consumption in the past three years. At the Parliament debates the National Authority for Energy Regulation (ANRE) says the most equitable form of capping should be based on a past consumption record as it would be difficult for providers to calculate the right price based on this years consumption.
Energy providers, which are the main beneficiaries of the soaring prices, say that after the governments ordinance on the present capping came into effect on September 1st, they have already been facing a series of liquidity issues due to delayed settlements. According to them, this situation is creating a major risk of financial blockage, and if an energy provider enters insolvency its customers will be taken over by the other providers under certain conditions.
But if the problem could be easily solved in the case of the small providers, the situation is going to be completely different in the case of energy providers with millions of customers.
Besides cold and darkness, the Romanians are also worried about a possible shortage of Romanian food products, as the latest price hikes in energy and fuel are also bearing on the agricultural field. For this reason, farmers have recently called on the government to take quick measures and introduce agriculture among the sectors benefitting from capped electricity prices. Because, they say, protecting agriculture, a vital sector for the populations food security is of strategic importance.
(bill)
