European Commission Opposes Energy Price Caps, Romania Must Remove Them

Romania’s price-capping measures for electricity and gas are not in line with European directives, according to a document published on the European Commission’s website. As a result, the Commission has announced the initiation of infringement proceedings against Romania. The country has two months to respond and lift the price caps, even though the government had planned to maintain them until spring next year.

“The European Commission has decided to open an infringement procedure by sending a letter of formal notice to Romania (INFR(2024)2194) for restricting the freedom of market participants to set wholesale electricity and gas prices, as well as gas exports,” the Commission stated.

Sending a dunning letter is the first step in the infringement procedure. This could end with Romania being sent to court if it does not comply with the Commission’s requirements. According to the Commission, the measures that violate European legislation are price caps for electricity and natural gas producers.

However, if the caps on electricity and natural gas producers were removed, those on final, domestic and industrial consumers would automatically have to be removed as well. Limits are currently imposed on both producers and the final price to consumers.

The Commission document states that an infringement procedure was opened in April 2023. However, the Government continued to maintain the ceilings until the end of March 2025. It even wanted to extend them until March 2026, but strongly opposed by the European Commission. Moreover, the Minister of Energy Sebastian Burduja has recently reopened the discussion about the possibility of extending these caps, if not for all consumers, at least for those with low incomes. He even sent, two days ago, a letter to the European Commission, so that at the next meeting of energy ministers on October 15 in Luxembourg, measures to reduce the price of energy in the Balkan region would be accepted.
cappingelectricityenergyEuropean Commissiongasinfringement proceedingsprice capsRomania
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