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December 4, 2022

Social Democrat leader assures maximum electricity tariff will be 1.3 RON/kWh starting January 1

Chairman of the Social Democratic Party (PSD) Marcel Ciolacu declared on Tuesday that the maximum electricity tariff effective as of January 1, 2023 will be 1.3 RON per kWh, stressing that if the government does not take a decision in this respect, Parliament will.

“Your tariff will be 1.3 RON at the most, even for a monthly consumption in excess of 200 kW. This was our red line. It will be published in the Official Journal until January 1, it will come in force. If it is not approved by the government, I will pass it through Parliament and I’ll still have it enacted. The bill settlement will be done in February with the inclusion in consumption tiers. The maximum tariff will be 1.3 RON, but there could also be lower tariffs,” Ciolacu told broadcaster Romania TV.

The Social Democrat leader also explained that there are around 8.7 million consumers in Romania, of whom 8 million fall within the consumption limit of 255 kW per month, while 700,000 consumers exceed this threshold.

He added that the price for natural gas is regulated and that gas stocks are sufficient to ensure there is no problem with gas this winter. Ciolacu also argued that out of control energy prices are to blame for the soaring inflation.

“We shouldn’t have waited so long to grasp once and for all that we are bringing a country and a population to its knees, if we don’t set a regulation in place for a certain period. Now the traders are very upset, but I suppose I am also the target of certain attacks. There are companies that gained 200 million euros in six months, traders who made profit between 1 and 3 percent… There were traders who operated in Romania but couldn’t be tracked and taxed. (…) This is the result of an irrational, chaotic liberalization,” Ciolacu said.


Pensions envelope to amount to 15 billion RON


Social Democratic Party (PSD) chair Marcel Ciolacu on Tuesday said that the ruling coalition reached an agreement on the budget envelope for pensions, which should account for at least 15 billion RON.

“We came to a conclusion that a 15 billion RON package is what we need. Just like when we entered the government, we will come with a social package, with a very clear economic package for next year and we are not talking here only of pensions. (…) The first thing we wanted to do was to close the energy chapter, which we did, as far as I understood, we closed this chapter tonight, and by that I mean that we agreed on the budget rectification in that sector. After all, at this point we are actually building the budget for next year. We agreed that the pensions envelope will be 15pct, i.e. at least 15 billion RON. Of this, an amount that we will agree on next in the coalition will be for increasing the pension point, because we are not allowed to operate differentiated increases – I saw the news that said Ciuca contradicts Ciolacu, but no, we speak the same language – and there will also be an amount that will come one off for those with low incomes, as we are trying to cover these gaps, for a certain period, until we have the pension law,” Ciolacu told private broadcaster Romania TV.

He also said that thresholds and amounts in this regard must also be established in the coalition.

On the same occasion, Marcel Ciolacu announced that there will be a meeting on Wednesday where it will be decided to increase the minimum salary up to 3,000 RON.


Very good news that second budget rectification, positive


Speaker of the Chamber of Deputies, Social Democratic Party (PSD) leader Marcel Ciolacu declared on Tuesday that “it is very good news” that this year’s second budget rectification is positive, noting that there are more revenues than expenditures and that he agreed with Prime Minister Nicolae Ciuca and the leader of the Hungarian Democratic Union of Romania (UDMR), Kelemen Hunor, that, mainly, all amounts should be redirected to investments and “under no circumstances” should the deficit assumed by agreement with the European Commission be exceeded.

“According to the institutional duties, rectification is within the Government of Romania and the Prime Minister’s purview. I had the information regarding the budget rectification. The number one priority and, ultimately, the red line that the Social Democratic Party imposed was with regard to regulation on electricity. Today’s meeting [November 15, ed. n.] was not directly related to the revision. The Minister of Finance has meetings with each individual authorising officer, respectively with each minister. This has been done, I discussed the principles with Mr. President Kelemen Hunor and Mr. Prime Minister a few days ago and each of us said certain things where the amounts should be allocated as a priority, but all three of us spoke the same language, because, mainly, we wanted to redirect all the amounts to investments, trying to save on goods and services, in all departments of all ministries and institutions subordinate to the Government,” Marcel Ciolacu told private broadcaster Romania TV.

He appreciated as “good news” the fact that the rectification is positive.

“What is very good news is the second rectification according to the law (…), which is a positive rectification. In other words, we had more income than expenditures. An audit was held, and all three of us agreed that under no circumstances should we exceed the deficit assumed by the agreement of the former right-wing Government with the European Commission, something that will be respected. (…) At this moment, the execution of September was seen in every ministry. One gratifying thing is the fact that we have 15 percent more so far in investments, even if in certain chapters, at least in relation to European funds, at this moment the amounts that we considered when building the state budget have not been attracted. But I continue to praise Mr. Marcel Bolos for his work at the Ministry of European Investments, knowing exactly the disaster he took over from the former minister,” added Ciolacu.

The government has completed the analysis for this year’s last budget rectification, concluding that it will be positive, with an increase in the revenues of the general consolidated budget by 500 million RON, informs a press release from the Executive sent on Tuesday.

The budget deficit drops from 5.84 percent to 5.74 percent, the cited source states.

“The revision ensures all the necessary amounts for the payment of salary rights and those in the sphere of social assistance, as well as for the proper functioning of all public institutions, until the end of the year,” the Government also states.


Compiled from Agerpres

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