• The Romanian government decides to cap energy tariffs, both for electricity and natural gas.
This week, the Prime Minister of Romania, Nicolae Ciucă, told the press list of measures taken by Government regarding the situation of energy price increases. Thus, the Government of Romania decides to cap energy tariffs, both for natural gas and for electricity. This ceiling is to be applied for one year, having a budgetary impact of around 3 billion euros.
Measures for domestic customers
Regarding electricity, the following measures have been established for household customers:
- for households with a monthly consumption of up to one hundred kilowatts, a situation in which there are more than 4 million households, a social tariff of 0,68 lei per kilowatt including VAT is introduced.
– For another 4 million households, which fall under a monthly consumption of electricity between 100 and 300 kilowatts per month, a tariff of 0,8 lei per kilowatt including VAT is established.
The impact of this measure on the state budget is estimated at 3,62 billion lei.
Measures for non-household customers
For SMEs, public institutions, hospitals, schools, kindergartens, places of worship, town halls, universities, NGOs, as well as other similar institutions, a rate of 1 leu per kilowatt, VAT included, will be applied.
The impact of this support package for the mentioned categories of beneficiaries is estimated at 5,54 billion lei.
Large consumers of electricity will benefit from state aid schemes, which will ensure a reduction in the cost of bills by up to 20%.
In total, all these support measures for electricity, targeting both categories of consumers, both domestic and non-domestic, will have an impact on the state budget of 9,16 billion lei by the end of 2022.
Natural gas rates
For natural gas, domestic consumers who will maintain an annual consumption of up to 1200 cubic meters will benefit from a tariff of 0,31 lei per kilowatt, with a budget impact of 2,8 billion lei by the end of of the year.
For non-household customers, natural gas will cost 0,37 lei per kilowatt. Large consumers will benefit from separate aid schemes.
The impact of these measures is estimated at 2,5 billion lei by the end of 2022.
Additional measures
"In addition, we have decided on a series of additional measures for the market, in order to moderate price volatility, without violating European rules, which would expose Romania to infringement procedures and could create major difficulties in the operation of the energy market", declares the Prime Minister of Romania , Nicolae Ciuca.
The measures are as follows:
- the introduction of an additional tax for trading activity on the Romanian market. This measure is taken to discourage repeat transactions that may drive up prices.
– suspending green certificates until the end of 2022 and extending their validity by the suspended period. This measure will temporarily reduce the fiscal pressure on the budget, which will thus be able to better support the measures to protect the population and the economy.
- on the supply cost, the profit rate will be a maximum of 5% for suppliers.
Implementation of measures
"The implementation of these measures after April 1 will allow the sustainable continuation of the efforts of the Romanian state to offer protection to the population and the business environment, which for one year will have price stability in compliance with the free market. In this way, we will be ready when the situation returns to normal with a functional market and, extremely importantly, significant investments in our ability to increase energy production", said Nicolae Ciucă.
Article written by Gabriela Dan, Editor of Arta Albă
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