Tenants who use medical devices for treatment or single-parent families who live for rent and have at least one child under the age of 18, respectively 26 years old if they are in a form of education, are at risk of not benefiting from the cap on electricity prices. why it does not fall under the definition of residential consumers, an aspect that is omitted in the new version of the GEO project submitted for discussion by the Ministry of Energy.

Electricity billPhoto: Tommaso79 / Dreamstime.com

How does the Government think of solving the problems of tenants

The government has not eliminated the risks that some renters have not to take advantage of the energy price restrictions, even through a new draft of an emergency regulation, which cancels the obligation to submit a declaration of personal responsibility by citizens who have several places of consumption.

The Ministry of Energy released on Tuesday evening at a public hearing a new GEO project, which proposes to abolish the obligation to submit declarations under own responsibility by household consumers with several places of consumption.

On the other hand, the obligation to submit a declaration will remain valid for three categories of consumers:

  • home clients who use devices, apparatus or medical equipment necessary for treatment
  • domestic clients who have at least 3 dependent children under the age of 18, corresponding to the age of 26, if they are studying in a form of education
  • domestic clients, single-parent families who have at least one dependent child under the age of 18, according to 26 years of education.

SEE DRAFT GEO AND KEYNOTE HERE

In the explanatory noteThe Ministry of Energy claims that this would be a solution to problems that tenants may have.

In accordance with the current provisions of Art. 1 paragraph (10) GEO 27/2022, a household consumer who has both a residential address and one or more home addresses must submit a declaration of own responsibility for housing where he uses a limited price to the supplier.

  • This approachapart from the fact that it can be time-consuming, it can seriously affect people living on rent, people who, even if according to the achieved monthly consumption or if they are in special situations specified in Art. 1 paragraph (1) letter a), point ii), iii) or iv) will be entitled to benefit from the limited price, will not be able to use the facilities provided in the absence of any declaration submitted by the owner or in the absence of a contract concluded directly with the electricity supplier.” this is stated in the explanatory note.

According to the Ministry of Energy, all these problems would be solved by the repeal of Art. 1 paragraph (10) GEO 27/2022.

Why some tenants may have problems despite the new GEO project

However, the amendment introduced by the Government does not solve the possible problems that tenants may have in connection with the limitation of energy prices, due to such an obvious reason, as it is not taken into account by the legislators: the term “household consumer”.

Both the current Emergency Ordinance GEO 27/2022 and the new draft Emergency Ordinance to be amended state that certain categories of “household customers” benefit from price caps within certain consumption thresholds.

What does a household customer mean?

In the law on electricity and natural gas, a household consumer is defined as follows: “a customer who buys electricity for his own household consumption, excluding consumption for commercial or professional activities.” That is, only those consumers who have direct consumption contracts with electricity suppliers.

The tenant is not a household customer, as he is not the owner of the house and does not have a direct contract with the electricity supplier. Not without the knowledge of the owner of this house.

Thus, a tenant who uses devices, appliances or medical equipment necessary for treatment risks not benefiting from the price cap of 0.68 lei/kWh, as now provided by Regulation 27/2022, if this tenant with health problems has an average monthly consumption over 100 kWh.

The other two categories of consumers, for whom submission of an affidavit will be mandatory, will face the same problem:

  • tenants who have at least 3 dependent children under the age of 18, respectively 26 years old, if they study according to the form of education
  • employers of single-parent families who have at least one dependent child under the age of 18, according to 26 years of education.

The danger that patients who use appliances or medical devices necessary for treatment will not benefit from the capped price of electricity if they live with rent, precisely because they are not domestic consumers as defined by law, has already reported Dumitru Chisăliță, President of the Intelligent Energy Associationbefore the Ministry of Energy proposes a new draft of the National Energy Agency.

What solutions did the energy engineer offer?

Dumitru Chisăliță, President of the Intelligent Energy Association, proposed as a solution to change the wording of Article 1, paragraph 1, letter a) point ii) of Law 357/2022 (the new law on limitations):

  • “domestic customers who use or host people who use devices, devices or medical equipment necessary for treatment,” or “domestic consumers who use devices, devices or medical equipment necessary for treatment,” he said.

“In the absence of such a change in the law, the solution to the problem is possible only by concluding a new contract for the supply of electricity in the name of a sick person who uses medical products, devices or equipment necessary for treatment.

This decision, however, limits the right of a person who uses devices, appliances or medical equipment necessary for the treatment to benefit from the capped price, starting on January 1, 2023.” – warned the expert.

The vice-president of NARE confirms that problems with tenants may still arise: We will send proposals to the Ministry

ANRE Vice President Zoltan Nagy-Bege, who asked HotNews.ro on Wednesday for an explanation on the issue, confirmed that there is such a risk for tenants who exceed the consumption thresholds stipulated by law.

  • “This is very true. If the supply contract is concluded in the name of the owner, he cannot demand price restrictions for his tenants (respectively for those who are in the 3rd social cases).
  • If these tenants fall under an average monthly consumption threshold of up to 100 kWh/month at a capped price of 0.68 lei/kWh or a consumption threshold between 100.01 and 255 kWh at a capped price of 0.80 lei/kWh, then the limited prices will be automatically applied to them.
  • Conversely, if they have a consumption that exceeds these thresholds and do not have an energy supply contract in their name, then they must conclude a contract with this energy supplier. Without an energy contract in their name, they cannot use the limit of 0.68 lei/kWh, which is currently provided by law.” This was stated by the vice president of ANRE to HotNews.ro.

After HotNews.ro reported that the current draft of the emergency ordinance does not address this problem of tenants who are not domestic consumers, the representative of ANRE said that comments will be made during the public consultation process.

  • “Therefore, such an act is under public discussion. Comments can be submitted to the Ministry of Energy. We are currently working on proposals and will send comments to the draft GEO.” – said the vice-president of ANRE, without giving details.

This was reported by government sources on Wednesday that “these problems reported by HotNews.ro are as urgent as possible and that representatives of ANRE and the Ministry of Energy are considering the possibility of proposing a text that would also address this situation.”

The government will approve the new decree on emergency situations next week.

Photo source: Tommaso79 | Dreamstime.com