The Romanian government is approving, today, the ordinance which provides for the capping of energy and gas prices for one year and the overtaxing of producers, a normative act harshly criticized by the opposition, as it “kills investments in electricity and gas”.
“They will boast that the prices have dropped with a strike of a pen. But we are in a free market. All they have done is to cut our legs off. Next winter, when we have neither enough gas nor enough electricity, they will again blame liberalization, multinationals, Ukraine, the Russians, foreign agents, and so on. Anyone except them, though they will be the only ones to blame,” writes, on his socializing page, the USR PM Claudiu Năsui.
According to the quoted source, the most destructive provisions of the ordinance are the capping of the gas price to the producer (not to the consumer) at about a third of the market price, and the over-taxation of 80% of electricity production.
“Both destroy the incentive to invest in electricity production and gas exploitation, which Romania needs massively,” says Năsui.
“Not only does it discourages investment in the future. But the measures are also a great blow given to those who had the courage to invest in Romania already. This is also the message that the government gives to investors: to make up their minds when it comes to investing in Romania. How do you think you can encourage investment in one area by adding an 80% surcharge? Good thing they are not thinking of encouraging agriculture through an 80% surcharge, otherwise we would starve to death,” he said.
“We say goodbye to investing in the production of electricity that Romania needs like air. We say goodbye to investing in gas exploitation, and with them our independence from Russian gas. We say goodbye to energy independence… It blocks investments and alternatives to imported gas. And guess where all the gas imports from Romania come from?”.
At the same time, the profile associations do not agree with the overtaxation, either.
The AFEER Supplier Association considers that none of the market players should be overcharged.
“The additional taxation of some of the actors will have the effect of discouraging investment in new production capacity (especially carbon-free ones) and artificially raising the price of imports, which could even lead, at a certain extent, to a decoupling from the supply of energy of some consumers, considering that Romania can no longer ensure, from its own sources, the internal need for electricity and, especially, natural gas,” say AFEER officials.
“In the context of explosive increases in electricity and gas prices, AFEER considers it necessary (as it considered from the outset) measures to support household consumers, especially the vulnerable, not only for the winter- up to 31 March 2022, but also until the situation on the energy market will stabilize. However, this requires clear, predictable provisions and procedures, so that there is a uniform treatment in place and that can be explained as easily as possible to the final customer who benefits from the measures established by law,” says the president of AFEER, Laurențiu Urluescu.
The measures proposed by AFEER include the reduction of the VAT rate applicable to electricity and gas supply services, the elimination of the excise duty on electricity and gas and the coverage of the state budget of the amounts related to the state aid schemes on the cogeneration bonus of high efficiency and the green certificates.
