The government on Thursday extended a support scheme until the end of August 2023, capping natural gas and electricity bills for households, small businesses, hospitals and schools up to certain levels of monthly consumption and compensating suppliers for the difference.
But the decree, which was approved without public consultation, also introduces an additional tax on the income of producers and traders, and caps the purchase prices of electricity for which suppliers can be compensated.
The Romanian Association of Energy Utilities (ACUE) said the capped compensation price did not reflect current market values, violated national and European Union law, and would lead to significant losses among suppliers.
“ACUE calls for the new changes to be reviewed to avoid a complete market freeze,” it said in a statement. “The situation is critical and … has a direct impact on the continuity of supply and distribution services.”
Speaking at a Black Sea security forum on Thursday, executives of gas and electricity supplier Engie Romania and gas producer OMV Petrom said they were still analyzing the decree to assess its implications. financial.
“I fear that this decree will have unexpected and unwanted effects,” said Eric Stab, managing director of Engie Romania.
“We are in an extraordinarily complicated situation, it is not easy to take well thought out measures which we are sure will have the desired effect.”
Alexandru Maximescu, director of public and regulatory affairs at OMV Petrom, said that “it is important to consult the industry before taking very important decisions such as this decree.”