​Romania has not notified the European Commission of the electricity and natural gas price cap/compensation scheme provided for in GEO 27/2022, even if it also targets industrial consumers, for which it can be considered State aid. According to HotNews.ro sources, this could become a problem because, if the European Commission is notified, large sanctions could be imposed, including the state’s obligation to reimburse the sums allocated to subsidize prices for industrial consumers, i.e. more than 12 billion lei.

HotNews.ro’s sources also say that this situation can be reached if the “angry supplier” informs the European Commission.

As regards price subsidization for domestic consumers, the notification of the European Commission is not required.

The Ministry of Energy says that this is the competence of the Competition Council / The Competition Council says that the procedure could only be started at the initiative of the Ministry of Energy

Public authorities generally avoid speaking on the subject, but upon request by HotNews.ro, the Ministry of Energy said that on December 23, 2022, it notified the European Commission’s Directorate-General for Energy through the Permanent Representation in Brussels, but prior notification of state aid would be the responsibility of the Council for competition It should be anticipated that GEO 27/2022 regarding the subsidy scheme was approved by the Government in March 2022.

“Regarding state aid, the Competition Council is the competent authority that notifies the European Commission in advance. The Competition Council is the only competent authority in relations with the European Commission regarding the determination of a measure as state aid or de minimis, and only then will the procedure for prior notification, accordingly, the approval of such measure by the European Commission, apply. has begun,” says the answer sent by the Ministry of Energy to HotNews.ro.

On the other hand, sources in the Competition Council say that the procedure could be started only at the initiative of the Ministry of Energy, which had to send all the preliminary documentation. More precisely, with regard to state aid, preliminary documentation is sent by the initiators to the General Directorate for Competition through the Competition Council. Sources in the Competition Council say that this documentation was not sent.

The Competition Council is the contact body in relations between the European Commission and the institutions of Romania.

The most expensive energy price cap scheme in the EU: only 12 billion lei

HotNews.ro analyzed the support measures provided by all EU countries to lower energy prices and found that Romania appears to have the most expensive subsidy scheme and the longest in terms of application period. This is in conditions when the energy crisis has passed and the markets have calmed down.

According to the data of the National Energy Regulatory Authority (ANRE), the amounts sent by suppliers for settlement amount to 23.3 billion lei, of which 12 billion lei to the Ministry of Energy for non-household consumers.

This was also recognized by Prime Minister Marcel Cholaku. “Today we have the most generous energy restriction scheme in Europe, because it covers the largest part of the population and economy. We will continue to do this next year! We allocated money in the budget to make a restriction scheme. to work longer,” Cholaku said in December 2023.

Most other states have supported the idea of ​​temporarily reducing or eliminating taxes, directly supporting vulnerable consumers, or state coverage of distribution costs, and the period of application is much shorter, and some measures are already expiring in some countries without renewal. Unlike Romania, many of these countries did not subsidize prices for industrial consumers.

In Romania, subsidies were given to energy suppliers and not directly to consumers, as in other countries.

The data analyzed by HotNews.ro is the data received by Eurostat from the member countries, at the level of October 2023.

According to official Eurostat data, the price of electricity and natural gas in contracts concluded between suppliers and Romanian consumers, regardless of whether they are domestic or industrial, was one of the highest in the EU in the first half of 2023.

What are the limit prices?

Household electricity consumers until 31.03.2025:

• A maximum of 0.68 lei/kWh, based on the monthly tariff from 0 to 100 kWh inclusive
• Maximum 0.80 lei/kWh, for monthly consumption from 100.01 to 255 kWh inclusive
• From 0.8 lei/kWh to 1.3 lei/kWh, with a monthly consumption of more than 255 kWh but less than 300 kWh, the first 255 will be billed at 0.8 lei/kWh and the rest – 1.3 lei/kWh.
• A maximum of 1.30 lei/kWh, with a monthly consumption of more than 300 kWh

For non-household electricity consumers until 31.03.2025:

• A maximum of 1 lei/kWh, for 85% of the monthly consumption at the point of consumption, the difference in consumption is charged to a maximum of 1.3 lei/kWh.
• A maximum of 1 lei/kWh for hospitals, schools, kindergartens, nurseries, social service centers

Household consumers of natural gas until March 31, 2025:

• The price is limited to 0.31 lei/kWh

For non-household consumers of natural gas until March 31, 2025:

Photo source: Animaflora | Dreamstime.com

Other articles on the gas and electricity price cap scheme:

• Romania probably has the most expensive electricity and gas subsidy scheme in the EU, but also among the highest prices in consumer contracts
• High electricity and gas price scandal: ANRE controls six major electricity suppliers, three main major gas suppliers and some traders
• Why spot energy prices in Romania are higher than in the west / Explained by suppliers
• Winter began with low gas prices on European markets / In Romania, prices are blocked by ceilings
• The response of the Ministry of Energy is full of contradictions, with which it protects the huge profits of energy suppliers: Companies complain that they did not receive subsidies worth billions of lei from the state on time
• Who are the businessmen and companies that benefited from the energy crisis in Romania / The supplier had a turnover of 18,346% and a profit of 3,298%
• What are the reasons why Romania has one of the highest electricity and gas prices in the EU / Explanation of the Ministry of Energy: Not only in Romania, companies have taken advantage
• Energy ceilings hide unreasonably high prices in the producer-supplier chain / What is checked on the market