Romania’s coalition government has announced its decision to extend a price cap on electricity for households and businesses until June and on gas for one year.
As next-door neighbors of Ukraine, Romanians have suffered the worst inflation in Europe.
This should hopefully shield consumers from a greater surge of energy costs.
Romania has been capping gas and power bills for households, small businesses, hospitals, schools and public institutions up to certain monthly consumption levels and compensating suppliers for the difference since November 2021, reports Reuters.
Suppliers have complained again and again about Romania’s delayed government payments.
Analysts have pointed out that market distortions will create future problems, and a quick bounce-back won’t be lie.
“For electricity until end-June and until then we will introduce measures to increase market volumes so that prices remain low. For gas we will keep the cap for another year to rebuild our stored reserves for next winter at manageable prices”, said PM Ciolacu.
Romania uses a mix of gas, coal, hydro, nuclear and renewables for electricity generation and has committed to phasing out lignite, or brown coal.
Romania produces nearly all the gas it consumes locally through OMV Petrom.
EPPO files indictment over fraud in Bulgaria involving EU funds for employment support
