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In an attempt to ease the pressure caused
by higher energy and gas bills, the government in Bucharest will endorse new
support measures to be approved through an emergency ordinance. A decision was needed
in this respect because the previous measures to support companies and
household consumers, which have been applied from November, are valid only
until April 1st.

According to Energy Minister Virgil
Popescu, the measures have already been discussed with representatives of the
Romanian Energy Regulatory Authority, as well as with energy providers and
distributors.

 Virgil Popescu: We are waiting for the Regulatory Authority to integrate into the
emergency ordinance some issues that are related to regulation fees. After we
have completed talks with all the market players we next want this emergency
ordinance endorsed so that we may have the new scheme operational starting
April 1st.

The new government solutions presented on
Monday by Prime Minister Nicolae Ciuca include caps and subsidies for the
aforementioned utilities. Electricity and gas will be capped for a year, and according
to the Prime Minister the measure will offer the business environment and
citizens stability in accordance with free market rules

Nicolae
Ciuca: Household
consumers will benefit from a social fee of 0.68 lei per kilowatt, including
the VAT for households with a monthly consumption up to 100 kilowatts.
Household consumers with a monthly consumption between 100 and 300 kilowatts
will have to pay 0.8 lei per kilowatt whereas consumers with an annual
consumption up to 12 hundred cubic meters are to pay 0.31 lei per kilowatt.



The impact of these measures has been
estimated around 3 billion euros by the end of the year.  But a survey by the Intelligent Energy
Association reminds that Romania is one of the three European countries, which
decided to cap prices to support their population. However, the capped price is
1.7 higher than the market price and that makes the aforementioned support
measures the least effective in the EU. The new measures are even less
significant if we take into account that Romania is the second country in the
EU in terms of the negative impact energy bills have upon the family budget -
double than the European average in 2022, the survey also shows.

(bill)



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