GEO on energy, new provisions: Method of calculating invoices, final price announced by the Government. Decision reaches Parliament

Minister Virgil Popescu makes the statements of the day on the new energy ordinance.

At 10:00 am, details are provided on the new formula for calculating the price of energy, which has just been decided by the Government.

Chief Cabinet Secretary Marian Neacșu said the Energy Ordinance “has just regulated a mechanism that will be able to ensure, for the next year, certain things of a principled nature.” “The mechanism initiated today, which regulates part of the energy market, makes it possible to continue to support price compensation (…) and the competitiveness of the Romanian economy”, he continued.

Mechanism as in France

Energy Minister Virgil Popescu announced that it is “possible” that the price of energy for those who exceed a consumption of 255 kilowatts/month is 1.3 lei/kWh, by modifying Ordinance 119 in Parliamentt. He says that “the system will allow price stability” and qualifies it as “ingenious”, already applied in France. The application period is until March 31, 2025.

Why is the GEO not published directly and amended in Parliament

Asked why it is still necessary to modify the ordinance capping the price at 1.3 lei kWh in Parliament, Marian Neacșu, head of the General Secretariat of the Government (SGG): “We wanted in this ordinance to strictly regulate the operating mechanism of the market for the following year, for the period of application of the Order, and we did not want to complicate things. The second aspect is that the law implementing the ordinance will cover all prices, as stated by Mr. Prime Minister and Mr. Minister, in the ordinance, all compensations for specified domestic and non-domestic consumers are regulated”.

He also announced that discussions will follow next week on the provisions of GEO 119, which is in the decision-making Chamber of Deputies, and, if this timetable is maintained, in two weeks the law adopting the Ordinance would be passed. Concerning the risk of referral to the CCR by the opposition, the head of the SGG specifies that “it should not be reported”, which benefits the Romanians. He also says that “it wouldn’t be appropriate, so we don’t expect it”.

Regarding those who will consume more than 300 kilowatts per month, asked if they should pay the market price, not capped at 1.3 lei kWh, Virgil Popescu urged patience, but also suggested the possibility of switching to a supplier cheaper. “The decision must be taken in Parliament,” said the Minister of Energy, regarding the possibility that those who consume more than 255 kilowatts per month should pay 1.3 lei/kilowatt before January 1, 2023.

“The period of application of the order is until March 31, 2025” was another response given by Virgil Popescu, Minister of Energy, in the press release, adding that “periodic assessments” will be made. At the same time, the Minister clarified that in the event of higher consumption, the calculation will be done differently: “Up to 255 kilowatts the price is 80 bani/kilowatt, beyond 255 kilowatts, but up to 300 kilowatts the difference is paid at 1.3 lei/kW. If it is a consumption of more than 300 kilowatts, the total value is calculated at 1.3 lei/kW”.

All prices are final, including VAT, explains Marian Neacșu.

“Yesterday (Wednesday no) was a decision that we made based on some formats and working data that we had, with the institutions that work on the ground and are responsible for everything that means the energy sector in the country and we have agreed that we will continue to ensure the price of 0.68 lei for citizens who consume up to 100 kWh, 0.80 lei for those who consume up to 255 kWh The same price will be for those who consume more than 255 kWh up to this ceiling, but what exceeds will have another level of payment and the amount you have circulated of 1.3 lei/kWh is taken into account”, Prime Minister Nicolae Ciucă prefaced Thursday to today’s decision.

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