PM announces compensation of energy, gas prices, considers capping gas tariffs

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Prime Minister Florin Cîţu announced on Wednesday that the government discussed, in first reading, a draft ordinance aimed at compensating energy and gas prices. Cîțu also said that the gas price cap was addressed, a topic that will have to be negotiated with the European Commission.

“We had discussions about capping the price of gas in today’s government sitting. The Energy Minister, together with the Competition Council, will also discuss with the European Commission. There are several options we are thinking about. We are looking for the best solutions for this period in which energy and gas prices have increased, for domestic and non-domestic consumers, especially until March 31“, Cîţu stated.

The meeting also approached such issues as the increase of production capacity and interconnectivity, the prime minister also mentioned.

Minister of Energy, Virgil Popescu explained that the draft ordinance provides for lower electricity bills for about 13 million Romanians out of 5.7 million households, which have a monthly consumption between 30 kWh and 200 kWh.

Regarding electricity, the minister explained that the difference between the lowest price in the market, 64 bani per kWh with all taxes included, and the average, 82 bani per kWh will be compensated. “This difference of 18 bani per kWh will be fully subsidized from the state budget. Almost 13 million Romanians will benefit from this measure “, said Popescu.

For gas, the bill will decrease by 25%, with two thirds of households in Romania to benefit from this measure.

The minister added that people’s incomes will no longer be taken into account, as it is assumed that those who have an average consumption also have an average income.

The ordinance would become effective on November 1.

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