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The scheme devised by the Government to support the CE Oltenia, damaging for large consumers

23 October 2019
Cogeneration
energynomics

Bogdan Tudorache

The large energy consumers, gathered under the ABIEC logo, claim that the scheme devised by the Government for CE Oltenia, made without consulting all stakeholders, can severely affect the Romanian industry.

“The Association of the Great Energy Consumers of Romania (ABIEC) draws attention to the fact that any additional scheme to support the energy sector nullifies the competitiveness of the Romanian industry, in the absence of similar measures for the industrial sectors, implemented at the level of the European Union”, says the association.

ABIEC expresses its deep concern about the Government/ authorities’ actions, announced in the press, regarding the support mechanism for the Oltenia Energy Complex (CEO) through which, for 10 years, all final consumers of electricity would pay up to 10.5 billion lei to support the costs with the emission certificates that the CEO must buy in order to produce electricity.

“The industry is in great difficulty because of the price of electricity and gas, all the taxes and support schemes it is obliged to support,” said Marian Năstase, ABIEC President. “We assist the powerless in destroying the competitiveness of Romanian companies even by their own electors, in a reality where the industry is ignored when countless strategies, programs, policies and support schemes are developed. We represent industries that produce high value-added products, we employ hundreds of thousands of people directly and indirectly and, despite the important role we play in the Romanian economy, we find that the Government’s measures lead to the loss of competitive advantages on international markets,” he added.

Energy is an essential component for the Romanian industry and that is why ABIEC members have invested over one billion euros in the best performing installations worldwide. As a result, the companies within the Association no longer have additional mechanisms to make energy consumption more efficient in their production processes. Therefore, the new taxes announced by the Government will pull out of market the industrial companies.

Because it is a raw material, Western countries consider energy as a support component for the development of value-added industries and, therefore, of welfare for the employees, the communities they belong to and the countries concerned. In Romania, energy is decoupled from economic and social development, being treated independently, with disastrous effects on the processing industry.

“The industry is already affected by the current price of electricity, the triggering moment being the measures adopted by GEO 114/2018 and transposed into the secondary legislation by ANRE, measures which, declaratively, come to the aid of the domestic consumer, but in reality seriously affect the industrial consumers.

These pressures on the Romanian market are superimposed on extremely difficult conditions internationally, where there is recorded an overproduction recognized globally. In fact, the European Union has made the political decision to support the large industrial sectors, which employ millions and have a major contribution to the EU’s Gross Domestic Product. As a result, ABIEC is asking the competent authorities to consult with large industrial consumers and all parties affected by new support schemes.”

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