Romania to adjust “cap and subsidy” system to lower market electricity prices

The state will provide lower subsidies to electricity suppliers that are compelled to deliver electricity at capped prices to end-users under a bill under debate in the Chamber of Deputies, Economica.net reported.

The results will be lower expenditures from the budget - expenditures expected to be covered by the supplementary taxes charged to energy producers.

The deputies are reviewing, at the request of President Klaus Iohannis, the bill enacting the emergency ordinance (OUG) 153/2022 sent back by the Presidency on the grounds that it includes unclear provisions.

Thus, the difference between the end-user price and a benchmark price of RON900 per MWh (from RON1,300 per MWh previously) will be covered under the scheme, according to the bill. The amendment reflects the lower prices on the market, according to the authors of the amendment.

(Photo: Methaphum Thongbun/ Dreamstime)