Accord on capping energy prices
The leaders of the ruling coalition in Bucharest have reached consensus on the energy prices.
Corina Cristea, 10.11.2022, 14:00
Eagerly awaited by household consumers and companies alike, a solution to play down the high energy prices was agreed on by the ruling coalition in Bucharest, on Wednesday. After weeks of debates, the leaders of PNL, PSD and UDMR have finally reached consensus. The new decisions will be enforced starting next year and will impact only customers that exceed the consumption level of 255 kWh, who now have to pay very high bills triggered by the skyrocketing energy prices. In Romania, the prices of electricity and natural gas have been capped as of November 1st, 2021, in the context of market liberalisation in July last year, at the same time with substantial price increases at international level. Various formulas applied ever since have protected only customers with monthly consumption rates of around 255 kWh or 300 kWh. All others have had to pay the market price.
The version agreed on Wednesday by the ruling coalition maintains the price of electricity at almost 14 eurocents (0.68 RON) for a monthly consumption level of maximum 100 kWh and at around 16 eurocents (0.8 RON) for a monthly consumption level of up to 255 kWh. However, starting January 1st, household consumers who exceed this threshold and the large companies will pay a flat price of 26 eurocents (1.30 lei) per kWh. Also, SMEs, the food and pharmaceutical industries and the places of worship will pay some 20 eurocents (1 RON) per kWh. The price of natural gas remains unchanged, that is around 6 eurocents (0.31 RON) per kWh for household consumers and 7 eurocents (0.37 RON) per kWh for companies.
From the opposition, the Alliance for the Union of Romanians (AUR) have called on the ruling coalition to speed up the implementation of measures that help people cope with the high energy prices. The Social Democrat leader, Marcel Ciolacu, has said that the Government will pass an emergency ordinance regulating the energy price and that modifications will be brought to the ordinance currently debated in the Chamber of Deputies. According to a study made public at the end of September, utility bills in Romania had the highest growth rate in the EU, being by 124% higher than in 2015. By comparison, the European average has been 100%. Moreover, Romanians must also cope with an inflation rate of 16%, which is higher than the one at European level, translating into more money being spent on monthly expenses. (EE)
