PM announces capping on energy, gas prices as of February 1


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Romanian PM Nicolae Ciuca announced that the ruling coalition had decided to lower the electricity and gas cap and increase the consumption limit as of February 1.

The coalition leaders have also agreed not to reduce VAT from 19% to 5% as of April 1, as PSD had asked for.

“We have reached an agreement so that the energy cap will be reduced from 1 lei to 0.8 lei per KW. At the same time, the consumption limit will increase from 300 KW to 500 KW for which this price is calculated. Practically there is a compensation of 0.291 lei per KW, which will mean that 0.68 bani per KW will be charged to the consumer. For SMEs, for large non-household consumers, the price will be capped at one leu per KW. For gas, the cap will be reduced from 0.37 to 0.31 lei per KW, and the five-month consumption limit will be increased from 1,000 to 1,500 KW. Also, a 40% discount will be enforced, from 33 to 40%, thus ensuring a price of 0.221 lei per KW. For SMEs, schools, hospitals, churches, the food industry, a price of 0.37 lei per KW will be provided,” PM Ciuca said after the coalition meeting on Monday evening.

The prime minister added that it was also decided that all the wrongly issued invoices, over one million in number, be reversed and sent back without the people being disconnected or paying penalties.

At the same time, he explained that, on Tuesday morning, there will be a discussion with suppliers and distributors and, depending on this meeting, the other elements of technical detail that will be included in the Government Ordinance will be established.

The normative act will be adopted next week at the latest.

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