The amount foreseen in the current budget adjustment of 2.5 billion lei for the Ministry of Energy is only 7.7% of the financing need estimated by the Ministry (31 billion lei) to cover the commitments made by the Government only through GEO 27/ 2022 until the end of 2022, namely the payment of the difference between the real price of bills of non-household consumers and the marginal price for energy, according to the Federation of Associations of Energy Companies (ACUE).

According to him, the amount provided for by the current revision of the budget is 7.3 billion for the ministry

Work and social solidarity 2 for the entire section “Social assistance” is significantly lower than the funding need estimated by the ACUE Federation at the request of the authorities (8.4 billion lei) to cover the commitments made by the government through GEO 27/2022 until the end of 2022 , respectively, payment of the difference between the real price of household consumers’ bills and the marginal price of energy carriers.

According to the quoted source, the current budget adjustment does not include the amounts needed to cover the price caps set by the Romanian state for the period from April to December 2022, putting the ability of the entire energy sector to continue functioning at significant risk. .

In a local and international context marked by a sharp rise in energy prices and many uncertainties regarding security of supply, the decision to “underbudget” the support scheme adopted by the Romanian state, which benefits approximately 90% of households and non-household consumers, represents an additional serious risk that seriously affects the sustainability of the entire energy sector.

“The authorities have full visibility of the energy market and should not wait, as they stated, for April 2022 calculations to correctly assess the need for financing. It is worrisome that the authorities have no perspective on developments in the local energy market and are evading the obligation to provide the necessary funds, citing delays in the settlement process, which were also created by state institutions, due to regulations and

late, imperfect and unclear procedures,” says ACUE.

“Money is not for suppliers, but for energy consumers. Suppliers provide such customer support in advance, at their own expense. Therefore, this decision directly and immediately risks causing blockages at the level of supply activities, but the further impact will be felt at the level of the entire energy sector and, ultimately, at the end consumers”, says Daniela Dareban, executive director of ACUE, Federation of Associations of Utilities

Energy.

For optimal implementation of support schemes, ACUE believes that public institutions involved in the settlement process should ensure:

• Reimbursement of the 5-month gap to settle measures taken for support schemes, including by deducting outstanding amounts from suppliers’ fiscal obligations and/or delaying payment deadlines in the supply chain

• The settlement process within the time limit prescribed by law (45 days) by urgently adopting clear, distinct and transparent settlement procedures and assessment of payment claims.

Failure to cover the amounts determined by GEO 27/2022 on time and at a real cost makes the ability of suppliers to support energy procurement, cold storage and financial flow in the chain vulnerable, affecting the stability of energy supply, industry and every citizen.

“The role of suppliers, namely the collection through the final price in the invoice, of all costs related to the energy sector (production, transportation, distribution, taxes, VAT, excises, etc.), was seriously affected by the underestimation of payment volumes and the postponement of payments. Given that the Romanian state received significant revenues from the price increase recorded in the field of energy production (more than 11 billion lei, only from the taxation of additional revenues), the proposal to allocate less than 25% of the necessary support measures to End consumers unbalances the entire national energy sector, in in the context of which all EU member states recommend measures to strengthen the sustainability of this sector,” says ACUE.

ACUE supports gradual cap adjustments, direct benefits to consumers, and targeted protection of low-income people and sectors of the economy with a high share of energy costs.