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Burduja on energy market re-liberalization: Romanians with consumption above 300 kWh should see a reduction in bills

20 November 2024
Uncategorized
energynomics

The re-liberalization of the energy market could bring Romanians with energy consumption above 300 kilowatt-hours (kWh) a reduction in bills of 20-30% or even 40%, Energy Minister Sebastian Burduja said on Tuesday at a specialized conference.

“I’ll start with the good news or what we expect to be good: Romanians who consume over 300 kilowatt-hours per month and pay that maximum 1.3 lei per kilowatt-hour today should see a reduction in their bills of 20-30%, maybe 40%, based on the offers that still exist today on the ANRE (National Energy Regulatory Authority, editor’s note). They are in the range of 0.9 – 1 leu/kilowatt-hour,” said Sebastian Burduja, quoted by Agerpres.

As for vulnerable Romanians, they will benefit from support measures, regardless of the Government, the minister said. In his opinion, it is much more correct to subsidize based on the income level of a household than on the level of consumption.

“For Romanians who are vulnerable, those who after paying the bills would fall below the poverty line, the Government, whoever it may be, will have support measures. We will not leave anyone behind and it is a commitment that does not belong to one party or another, it belongs to a responsibility that every Government has. Every state in the European Union has done these things. There is nothing special here. I continue to argue that it is much more correct to subsidize based on the income level of a household than on the level of consumption. I believe that such a model will be moved towards on April 1st,” added Sebastian Burduja.

At the same time, he also referred to a possible phased program for the sale of electricity, on a predictable calendar.

“I am aware that there are fears in the market related to the level of liquidity. I have discussed with Mrs. Dărban (Daniela Dărăban, executive director of the Federation of Associations of Energy Utility Companies (ACUE), n.d.) many times, about a possible power release program, a phased program for the sale of electricity, on a predictable calendar. What I can assure you is that by the end of January, maybe even earlier, we will have this entire architecture defined, so that all players in the energy market: producers, distributors, suppliers, of course, end customers know what to expect, and the impact on the end customer is as small as possible. If there are Romanians today who have a high income, but have an empty apartment, where the state subsidizes at 0.68 lei per kilowatt-hour per month, they will probably no longer have a bill of 45-42 lei, they will probably have a bill of 60 lei. It should not be an effort for them, because we are talking about those households with a fair income, with a more than decent income,” the Minister of Energy also said.

 

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