The state’s debt to energy and gas suppliers for the payment of price compensation under the energy and gas price cap mechanism last month amounted to about 800 million lei. to ease supplier discontent, Çolaku announced that the government would approve another 500 million lei on Thursday.

The price of electricityPhoto: Jonathan Raa/NurPhoto/Shutterstock Editorial/Profimedia
  • “These days we have seen an intense European debate about what will happen to gases next winter. I want to say clearly: we will continue the mechanism of limiting energy and gas prices at least until the spring of 2025!
  • In the next period we will come up with adjustments to this mechanism, but I want both the public and the companies to have this very clear guarantee that they will be protected!
  • In fact, today we are allocating 500 million lei to offset the costs of restrictions for domestic consumers,” said the Prime Minister.

What payment arrears caused dissatisfaction of the supplier

The government will practically approve Memorandumwhich provides for the payment of this amount requested by the Ministry of Labor.

  • “The lack of necessary amounts in the Energy Transition Fund and administrative procedures for opening budget loans inevitably lead to overdue payment terms, causing dissatisfaction on the part of suppliers. Thus, at the beginning of 2024, the amounts representing 40% of the suppliers’ application, as well as those confirmed by ANRE, amounted to 1,829,248 thousand lei.
  • Taking into account the provisions contained in the law on the annual budget, and in order to provide part of the sums demanded by the suppliers, in February 2024 the Ministry of Labor and Social Solidarity, in agreement with the Ministry of Finance, allocated and paid to the suppliers from the approved budget, the sum of 1,000,000 thousand. lei, keeping a backlog of approximately 800,000 lei, an amount that will increase taking into account that this program will continue to operate until March 31, 2025,” the memorandum says.

The Ministry of Labor requests to increase by 500 million lei the credits for obligations and budget credits for the first quarter of 2024, related to the price cap on electricity and natural gas for household customers, and to decrease by the same amount for the fourth quarter, from the funds, intended for the payment of social assistance.