The Romanian Government published on March 17 the emergency ordinance that regulates the energy (electricity, natural gas) prices for households over the next twelve months and is expected to endorse it on March 18 despite the criticism expressed by the Social Democratic Party (PSD), Digi24 reported.

Compared to the scheme in force since last November, the capped natural gas price is guaranteed for households irrespective of their monthly consumption.

For the non-household customers, the natural gas price is capped at a slightly higher level (RON 370 per MWh compared to RON 310 per MWh in the case of the households) and will apply to legal entities with an annual consumption of up to 50,000 MWh in 2021, according to the document.

The limit is rather high, given that, according to the official regulated classification, the largest industrial consumers of gas are considered to be those with annual consumption between 28,000 and 280,000 MWh.

Capping the prices will cost the budget some RON 40 bln (EUR 8 bln) in April-December this year alone, PSD claims in an internal note quoted by Economedia.ro.

The Government, however, seeks to offset the expenditures with an 80% tax on the profits generated by the electricity producers selling their output at a price larger than RON 300 per MWh. 

andrei@romania-insider.com

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