20.01.2022

ROMANIA WITH EVEN STRICTER RESTRICTIONS ON ELECTRICITY AND GAS PRICES

Romania will impose even more severe restrictions on rising electricity and gas prices.

The current energy price ceiling will be lowered as early as February 1st, and subsidies for households and some small companies will increase, Prime Minister Nicolae Chuka said.

The government will issue an emergency decree that will limit the price of electricity to RON 0.68 per kilowatt-hour, and the ceiling on the price of natural gas will be RON 0.31 per kilowatt-hour, it became clear after a meeting of the ruling coalition.

Lowering the ceiling on the price of electricity is drastic - over 30%, as the current limit price was RON 1 per kilowatt-hour. For gas, the difference is much smaller - only RON 0.06, as it cost a maximum of RON 0.37 per kilowatt-hour.

The state will also significantly increase the threshold of energy consumption, which is charged at subsidized prices. It will now be 500 kilowatts per hour, instead of the current 300, SeeNews reports.

The new measures will run until March 31st and will cost the Romanian treasury about RON 3 billion (606m euros).

About 6 million households in the country are already benefiting from the ceiling on electricity and gas prices, and will now be joined by hospitals, schools, small businesses and some food producers.

The energy subsidies will be financed by the profits of the state energy producer Hidroelectrica and corporate taxes.