Consumers to pay EUR 2 bln over 10 years to save second-biggest power producer in Romania

All electricity consumers in Romania may have to pay a special fee for a period of ten years, between 2020 and 2030, to save the country’s second-biggest electricity producer – the Oltenia Energy Complex (CEO), local Economica.net reported.

The fee would be included in the electricity bills and would help the company raise up to RON 10.65 billion (over EUR 2.2 billion) over the 10-year period, according to a draft bill that the Romanian authorities will have to discuss with the European Commission.

The scheme could lead to an 8% increase in the price of electricity paid by household consumers, in 2020, followed by a 4.8% increase in 2021 and another 4.3% increase in 2022, according to the scheme. The company would use the money thus raised to pay for a part of the CO2 emission certificates it has to buy every year to continue producing electricity.

CEO, which operates several power plants that use low-quality coal (lignite), has been negatively impacted by the increase in the price of CO2 certificates in recent years. Without a support scheme, the company risks going bankrupt and its power plants could close, leaving Romania in a situation in which it wouldn’t be able to cover its domestic electricity consumption, even it if used its full import capacities.

CEO had a share of 22% of Romania’s electricity market in 2018, according to data from market regulator ANRE quoted by the company.

(Photo source: Facebook/Complexul Energetic Oltenia)