​The prices of electricity and natural gas consumed by households in Romania are among the highest in the EU, according to Eurostat data, which took into account contractual prices set by suppliers rather than the capped ones actually paid by the consumer. Practically somewhere in the producer-supplier chain there are companies that receive unreasonably high profits, considering that the difference from the limited price to the contract price is borne by the state, that is, any taxpayer in Romania.

When asked by HotNews.ro to explain this situation, the Ministry of Energy replied that “throughout Europe, not only in Romania, energy companies took advantage of the increase in energy prices.”

But, according to Eurostat data, Romanian companies are more profitable than any other. Romania is in the TOP-3 with the highest prices for electricity and in second place for the price of natural gas.

Practically, the restrictions hide excessively high prices for Romania somewhere in the producer-supplier chain. HotNews.ro wrote about who can benefit, given that producers are obliged to sell through MACEE – a mechanism for the centralized purchase of electricity, at a price of 450 lei/MWh, to which are added tariffs for transportation and distribution and the supplier’s margin.

Ministry of Energy: the situation was worsened by the alignment of all prices to the highest on the market

When asked why we have some of the highest prices in the EU, the Ministry of Energy replied that the situation in Romania is complicated by several factors, in particular, the fact that all the producing companies are forced to line up behind the most expensive, namely the Olten energy complex, which produces coal-fired electricity.]

The reasons given by the Ministry of Energy:

• the drop in production compared to consumption needs due to the lack of investment in the energy sector over the past 20 years;
• monofuel structure of electricity generation companies, due to which the prices correspond to the highest prices on the market, according to the producers
• coal-fired power (it should be noted that their cost also includes the cost of CO2 certificates, which further increases market prices) or natural gas;
• the weather situation in the summer of 2022, which, against the background of a decrease in wind flow, led to a decrease in wind generation and its replacement by generation based on
• fossil fuel or water (with a corresponding reduction in primary energy reserves);
• outdated production technology with high cost of production and low productivity of some groups, availability of production facilities with a limited service life or
• outdated;
• lack of electricity storage capacity.

Electricity and gas suppliers received 12.4 billion lei from the state

The Energy Ministry avoided making clear who benefits from the highest contract prices for electricity and natural gas, saying that “across Europe, not just Romania, energy companies have benefited from higher energy prices.” He also replied that EU Regulation 2022/1854 allows EU states to intervene to reduce costs at the level of end consumers.

That is, the Ministry of Energy believes that it does not matter that the contracts have very high prices, only the lower price paid by the final consumer. However, the Ministry of Energy also claims that the state has paid approximately 12.4 billion lei to natural gas and electricity suppliers under the cap/compensation schemes.

But the limits were set in 2022, when prices were at record highs. Meanwhile, gas and electricity have automatically become cheaper across the EU, while cap/compensation schemes have remained unchanged. On European exchanges, gas prices were almost 90% lower than their 2022 peaks, and electricity prices tripled.

The Ministry of Energy reminds that Romania has taken measures to moderate price increases (price ceilings for different categories of consumers, promoting GEO 118/2021 and GEO 27/2022), as well as to redistribute excess revenues of energy companies to consumers, in order to protect them ( taxation of producers, traders, application of temporary solidarity contribution to oil sector companies, etc.).

Ministry of Energy, some technical explanations regarding the energy crisis

The increase in prices for energy carriers and natural gas was recorded first against the background of economic recovery after the pandemic and implicitly exponential growth in demand for electricity, and later as an effect of the increase in the price of natural gas, intensified by the start of the war in Ukraine, the Ministry of Energy explains.

As of September 2021, electricity markets are experiencing very high prices. This is mainly a consequence of the high price of gases, which are used as a production factor for the production of electricity. Natural gas-fired power plants are often needed to meet electricity demand when it peaks during the day or when electricity generated by other technologies such as nuclear, hydroelectric or variable renewables is insufficient to meet the demand . .

“The escalation of Russia’s war of aggression against Ukraine, starting in February 2022, led to a significant decrease in gas supplies. Russia’s war of aggression against Ukraine has also caused uncertainty about the supply of other commodities, such as higher-quality coal and crude oil. This led to a significant additional price increase and volatility in the price of electricity,” the Ministry of Energy notes.

In parallel, the unusually high temperatures experienced in the summer of 2022 led to an increase in demand for electricity for cooling, increasing pressure on electricity generation, while electricity generation from certain technologies was well below historical levels due to technical and meteorological reasons. circumstance.

This is caused by a severe drought that has resulted in:

• the reduction of electricity production by nuclear power plants in various member states, caused by the lack of available cooling water;
• limited production of hydroelectric power;
• low water levels in the main rivers, which negatively affected the transportation of basic products that are used as fuel for the production of electricity

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:

• A maximum of 0.37 lei/kWh, with an annual consumption of no more than 50,000 MWh and for thermal energy producers.

Photo source: Jonathan Raa/NurPhoto/Shutterstock Editorial/Profimedia

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