Where to go and where to crack, with reductions in electricity bills: compensation could lead to higher prices27 August 2021
At a time when the Romanian authorities have come up with important promises to offset energy bills, suppliers are issuing a series of warnings and explaining why state mechanisms could lead to price increases.
GEO 118/2021 is the name of the ordinance by which the Government hopes to help the population to cope with a little more ease the increases in energy prices in the next period. The document passed the vote of the senate and, at this moment, is being debated in the Chamber of Deputies. Unfortunately, instead of helping us, it might hurt us more, and the explanation is simple. It all starts from the trust in the Romanian authorities and from the fact that there are high chances that they will not pay those compensations to the energy suppliers.
The Association of Energy Suppliers in Romania is sounding the alarm regarding the potential consequences of GEO 118/2021. In their opinion, in the most optimistic case, they will lead to price increases suffered by the population. In the most pessimistic case, we may face a lack of energy if suppliers go into insolvency or bankruptcy because there will be massive delays in recovering money from the state.
As a possible solution, AFEER officials hope to participate in the debates in the Chamber of Deputies, together with the representatives of the other actors in the energy sector, on GEO 118/2021. As a reference, from November 1, 2021, it is desired to implement a compensation scheme for the consumption of electricity and natural gas for the cold season from 2021 to 2021. At present, however, the particularities of the respective system do not but they were nailed.
“It is necessary to consult as widely as possible the specialists in the energy field, before making decisions that influence the activity in the sector,” said LaurenÅiu Urluescu, President of AFEER. “That is why we asked to be consulted and to participate in the debates on GEO 118/2021 in the specialized commissions of the Chamber of Deputies, in order to present the unclear or debatable aspects of this normative act”, he added. Urluescu.