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June 22, 2024
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Romania Caps Energy, Gas Prices

The Romanian Government is taking steps in helping Romanian citizens cope with the current high prices of gas and energy by implementing new measures to provide support for 8 million households.

Romanian Minister of Energy Virgil Popescu announced on March 18 that the Government passed an emergency ordinance on measures applicable to final consumers in the electricity and natural gas markets between April 1, 2022, and March 31, 2023.

What are these measures and what do they provide?

The measures are establishing a cap on final billed electricity costs for vulnerable home customers or those who may fall into an energy poverty position, in two consumption tranches, depending on average monthly usage in 2021 and finally, natural gas prices:

-maximum EUR 0.14 / kWh, VAT included, for household customers whose average monthly consumption at the point of consumption in 2021 is less than or equal to 100 KWh;

-maximum EUR 0.16/ kWh, VAT included, for household customers whose average monthly consumption at the point of consumption in 2021 is between 100 kWh and 300 KWh inclusive;

For domestic customers, the natural gas will be priced at a maximum of EUR 0.063 per kWh, including VAT.

Except for significant users who will benefit from the industry-specific program, the legislation also caps final invoiced costs for electricity and natural gas for non-household customers at a maximum of EUR 0.20 / kWh, VAT included. In the case of non-household customers, whose annual natural gas consumption at the point of consumption in 2021 was at most 50,000 MWh, as well as producers of thermal energy intended for consumption by other customers, the price for natural gas will be capped at EUR 0.075 / kWh, VAT included.

Romanians will have the support of the Government for the payment of energy bills for another year! The new measures, which come into force on April 1, benefit 8 million households from electricity, and all connected households from natural gas, regardless of consumption! Together with Prime Minister Nicolae Ciuca and colleagues from the Government, we approved the Emergency Ordinance on the measures applicable to final customers in the electricity and natural gas market between April 1, 2022 and March 31, 2023.

Virgil Popescu, Romanian Minister of Energy

Measures to stabilize rising energy and gas prices are urgently needed for Romania, especially when the crisis seems to be fast approaching, considering that the inflation pressure in the next period will be critical, according to the National Bank of Romania’s (NBR) Quarterly Inflation Report.

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