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Romanian government extends the energy price cap

February 27, 2025

Marcel Ciolacu, Romania's Prime Minister, announced on Thursday that the coalition government would extend the price cap for electricity to households and businesses up until June, and for gas, for one year. This is in order to protect consumers from recent increases in energy prices.

Since November 2021, Romania caps gas and electricity bills for households, small business, hospitals, schools, and public institutions at certain monthly consumption levels, and compensates suppliers for any difference.

The scheme was modified several times, and it was set to expire by the end of march. The government has repeatedly delayed payments to suppliers, and market observers have warned that it will be hard to correct the distortions.

Ciolacu announced at the beginning of a meeting that the government would approve the continuation of the cap on energy prices.

We will increase the market volume to keep prices low until June. We will continue to cap gas prices for an additional year in order to replenish our reserves and keep them at a manageable price for the winter of next year.

Romania's electricity is generated using a mixture of gas, coal and renewable energy sources. The country has also committed to phase out brown coal (lignite), although the Energy Ministry is seeking a delay.

Black Sea Oil & Gas, Romgaz and OMV Petrom produce almost all of the gas that is consumed locally. (Reporting and editing by Alex Richardson; Luiza Ilie)

(source: Reuters)

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