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June 30, 2022
ECONOMY ENERGY

Government approves Emergency Ordinance capping electricity and gas prices for one year

The government approved on Friday the Emergency Ordinance capping electricity and gas prices for one year, for both household and industrial consumers, Energy Minister Virgil Popescu wrote on Facebook.

“One more year of government support for the Romanians’ energy bills! The new measures coming in force on April 1 benefit 8 million households for electricity, and all households connected to the grid for natural gas, regardless of consumption. Together with Prime Minister Nicolae Ciuca and my government colleagues we approved the Emergency Ordinance on the measures applicable to end electricity and gas customers between April 1, 2022 and March 31, 2023,” Popescu said.

Final electricity bills for vulnerable households or for those affected by energy poverty will be capped on two tiers, based on their average monthly consumption in 2021 and the final gas prices.

For electricity, the price will be a maximum of 0.68 RON/kWh, VAT included, for households whose average monthly consumption in 2021 is less than or equal to 100 KWh; and a maximum 0.8 RON/kWh, VAT included, for households whose average monthly consumption in 2021 is between 100 kWh and 300 KWh inclusive.

For gas, the price will be capped at a maximum of 0.31 RON/kWh, VAT included.

For non-household consumers, the price for electricity will be 1 RON/kWh at the most, VAT included, and for gas it will be a maximum of 0.37 RON/ kWh, VAT included, for an annual gas consumption in 2021 of 50,000 MWh at the most; the same applies for producers of heating energy intended for other consumers.

Heat and power plants will buy natural gas for a regulated price of 250 RON/MWh, Minister Popescu specified.

The draft regulatory act posted on Thursday evening on the website of the Energy Ministry also provided for a price of 150 RON per MWh for domestically produced gas. The Minister does not specify whether this proposal has been approved or not, Agerpres informs.

 

PSD’s Ciolacu: Ordinance regarding energy prices to act as shield for Romanians, companies

 

The chairman of the Social Democratic Party (PSD), Marcel Ciolacu, stated, on Friday, that the Emergency Ordinance regarding the regulation of electricity and gas prices will act as a “shield” both for Romanians, as well as companies, “who won’t live daily under the spectre of painful price increases.”

“After two months of sustained efforts, PSD has achieved its essential objective regarding the protection, for one year, of Romanian citizens and companies against the increasing utility bills! The Emergency Ordinance regarding the regulation of prices in electricity and gas will act as a shield both for Romanians, as well as for companies, who will not live daily under the spectre of painful price increases,” wrote Ciolacu, on Facebook.

According to him, PSD “has ensured that all those who will speculate the prices will be harshly overtaxed,” and natural gases from internal production will be sold “at reasonable prices for Romanians.”

“From the discussions with all economists, we have the certainty that capping energy and natural gas prices, which means over 50 percent of inflation increase, will determine a stabilization of prices, with major positive effects on the purchasing power of Romanians. We are remaining focused on measures to support Romanian companies and to maintain the standard of living of the population, as this is the main reason we’ve joined the government,” said Marcel Ciolacu.

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