October 2, 2022

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Capping energy prices, extended until August 2023. Virgil Popescu: “We encourage the population to economize”

The Minister of Energy, Virgil Popescu, declared on Thursday, at the end of the government meeting in which the Ordinance amending and supplementing GEO 27/2022 was approved, that the capping and population protection scheme will be extended until August 31, 2023.

At the same time, household customers whose average monthly consumption was between 100.01 and 300 kWh are encouraged to save, through the proposed measures.

“Tonight we approved the amendments to Ordinance 27. Practically, the period of applicability of Ordinance 27 is extended. From September 1 this year, practically from today, until August 31 next year. The capping and protection scheme of of the population and the economic environment extends from April 1, 2022 to August 31, 2023. The consumption ceilings for the population remain the same, between 0 – 100 KWh consumption, the price is 68 bani/kW – basically, this tariff for the population that consumes a lot few kilowatts. Between 0 – 300 kilowatts, there is a slight change here. Within the same cap, we try to stimulate the population to save. The price of 80 money applies to the first 255 kilowatts of this cap; the difference between 255 and 300 – at the price in the contract”, he said, in a press statement held at the end of the government meeting.

He mentioned that for the economic environment and public institutions, the final price will remain at 1 leu/kWh.

“Hospitals, whether public or private, education, whether public or private, social service providers, whether public or private – one leu per kilowatt for the entire amount of electricity consumed. The others, the SMEs, the food industry, the other public institutions – 85% of the amount consumed, precisely to try to stimulate them and save more electricity,” he said.

Regarding natural gas, for consumption between April 1, 2022 and August 31, 2023, the final price invoiced by natural gas suppliers is a maximum of 0.31 lei/kWh, including VAT, for domestic customers.

“For natural gas, 31 money – the price remains the same for the population, for the kilowatt of natural gas consumed. What may not have been exemplified until now, was not said: last winter, the population had a consumption ceiling, this winter there is no more this consumption cap, we haven’t seen it before. Maybe we haven’t exemplified either. So we’re not talking about a consumption cap for gas, so we’re not talking about a problem in not falling into -a certain consumption ceiling. Moreover, for natural gas, for the population, the price is regulated, the producers have the obligation to sell natural gas to suppliers of domestic customers at 150 lei per megawatt, and it is also capped and regulated for thermal energy production at the same price for CETs”, the minister also said.

In the case of non-household customers, the provision is maintained that the final billed price will be a maximum of 0.37 lei/kWh, for those who consume up to 50,000 megawatts annually.

The minister mentioned that a way to encourage suppliers “to look for cheaper energy and not wait for the state to settle” any amount is introduced in the ordinance.

“Practically, looking together with OPCOM and ANRE, with the Ministry of Finance – absolutely everyone from the market – and to see exactly the average prices of the transactions, a maximum settlement ceiling was established by the state budget of the megawatt of energy electricity at 1,300 lei. Basically, everything that is over 1,300 lei, if the supplier is not competitive enough to look for energy and believes that he can be settled for absolutely any amount, he will no longer benefit from any price, money from to the state budget”, explained Virgil Popescu.

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