Romania’s Government considers subsidising households’ electricity and natural gas bills, minister of energy Virgil Popescu announced after the Executive’s meeting on September 15, Mediafax reported.

The households using between 30kWh and 200 kWh per month will receive RON 0.18 per kWh, which is around 22% of the average electricity price (RON 0.82 per kWh).

The size of the subsidy was calculated as the differential between the best (lowest) offer on the market and the average offer, minister Popescu explained.

The households using less than 30 kWh per month are holiday homes, and households using more than 200 kWh per month must be wealthy ones that need no subsidy, minister Popescu explained.

Using electricity for heating is, therefore, a wrong option for Romanian households (except for the wealthy ones).

But not many households use more than 200 kWh per month, according to minister Popescu - who claims that 13 mln Romanians (out of 19 mln) fall into the category of 30 kWh to 200 kWh per month. Most likely, the minister has used the average monthly consumption.

As regards the subsidies to natural gas consumers, households with annual consumption of under 1,200 cubic metres will receive such support.

The 25% subsidy was calculated based on an expected price of 255 per MWh, roughly twice the price last winter.

The subsidies will be effective November 1, but everything is at the level of scenarios discussed by the Government, minister Popescu added. 

(Photo: Gov.ro)

andrei@romania-insider.com