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.