Romania's Govt. expects to pay EUR 800 mln for capping residential energy prices this winter

The Romanian Government budgeted RON 4 bln (EUR 800 mln) for covering this winter the differential between the price paid by energy suppliers and the (capped) price paid by the residential users for the electricity and natural gas, Profit.ro reported.

Part of the money should be recovered from the so-called windfall revenues tax from energy producers.

The money is included in the 2022 budget planning. The procedures for disbursing the money to the supply companies were approved on November 25.

The suppliers have expressed concerns regarding the timely and sufficient compensation for the losses incurred by selling electricity and natural gas to households below the wholesale market levels.

The timeliness concerns may be addressed by the Government moving fast to approve the budget, but the size of the compensations remain problematic. Under regulations, the suppliers are compensated based on some average market prices - and not the actual price paid to producers or on the wholesale market) for the electricity supplied to households.

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