Romanian state to cash RON 43 bln from energy price hikes

The Romanian state will cash over 43 billion RON this year from taxes and dividends paid by the energy sector, as a result of the price hikes, president of Romania’s Energy Suppliers Association (AFEER) Laurentiu Urluescu told a press conference on Tuesday.

“The suppliers haven’t yet received any money in compensation for the period starting in April. For the interval November to March, the first money came in after seven months, we are now four months into the new compensation scheme and we hope to receive the money faster than for the first round. This is happening although according to the law, we should receive the money in 45 days. The authorities claim that the suppliers were slow to send the information, but our interest is to complete the process quickly and get the money. If we were late, it was because of various ambiguities,” he said.

The representative of the energy suppliers argued that there is a huge gap between the necessary settlement amount and the figure granted at the budget revision, adding that the suppliers are having a rather tough time, as the banks already see the energy sector as prone to risk.

The AFEER president said that the day-ahead spot market, where prices are currently very high, is the most liquid energy market in Romania and cannot be closed, as was requested in the public space.

“We cannot close Romania’s most liquid bidding facility, the day-ahead market. It is also interconnected, and if we shut it down there is no more import energy coming in. On the other hand, other countries are facing similar problems. The problem is Europe-wide, and a solution must be found at European level. If each country settles for its own solution, distortions and unnatural trade flows will occur that will make the situation even worse,” said Urluescu.

In his view, the aid should be directed only to vulnerable consumers, along with the reduction of VAT and the excise duty.