Again, about offsetting energy prices
The Romanian government announces a new protection scheme for household electricity consumers.
Roxana Vasile, 12.01.2022, 13:50
The situation in the Romanian energy sector is serious and does not seem to improve in the absence of a firm political intervention. Overlapping the full liberalization of the energy market in 2021, the spikes in electricity and gas prices make victims. On the one hand, among household consumers, especially the vulnerable, who, from one month to the next, receive huge energy bills. On the other hand, companies are also facing problems which, for the same reason, find themselves in a situation to restrict their activity and, consequently, to make a lot of redundancies. One of the most resounding cases, these days, is that of the ALRO Aluminum Plant in Slatina (south), one of the largest in Europe, which has already started closing an electrolysis hall that has been operating for over half a century. The Energy Ministry says that the control over the actors on the energy market is held by the Authority for Energy Regulation (ANRE), an autonomous, independent body, and the National Authority for Consumer Protection.
The governing coalition made up of the PNL-PSD-UDMR, decided through an emergency decree, subsequently voted in Parliament, to cap energy prices between November 1, 2021 – March 31, 2022, and to provide compensations to the population.
However, not all market players have complied with the law, according to the energy minister, Virgil Popescu: “Indeed, there are suppliers who have not capped the prices and sent uncompensated bills. Only one large supplier was prepared, so that, by December 15, it issued correct invoices, as stipulated by the law.”
Consequently, those who have received non-compliant bills do not have to pay them, and the suppliers are obliged to resend correct bills, otherwise, they risk having their operating license lifted. Moreover, the PM Nicolae Ciucă announced further measures to support the population: “As of April 1, household consumers with a monthly consumption of up to 300 kWh will benefit from a new protection scheme, which will include a VAT reduced to 5%, as well as the compensation of the green certificate and of the cogeneration bonus for consumption. We will also draft a natural gas support scheme.”
According to the prime minister, support measures for SMEs are also being considered, provided that they don’t make redundancies. The Social Democrats welcomed the measures to protect the population against energy price hikes but say that more is needed. Thus, they suggest reducing the VAT not only for energy, but also for natural gas, and not from April 1, but from February 1.
Almost all products and services have become more expensive in Romania due to the increase in electricity and gas prices, inflation being a matter of concern both for the population and the central bank. For the first part of this year, the inflation level of 7-8% could be exceeded. (LS)
