Romania will maintain the price capping system, under which the electricity and natural gas suppliers are compensated for the prices paid in the market above a certain level corresponding to end-user target prices, until March 2025, minister of energy Sebastian Burduja announced.

The scheme is intended for residential and non-residential (except for large industrial) consumers.

Currently, the state has a RON 2 billion (EUR 400 million) debt to the energy suppliers, and the cost of the scheme is estimated to be much lower this year than last year, namely some RON 3 billion (EUR 600 million). The scheme is financed from windfall gain taxes charged to the electricity generation and natural gas companies.

Regarding what will happen after the scheme is terminated, Burduja said that all the players seek a phased exit.

"If we were to resort to a sudden measure, [it will] lead to an increase in prices, so it will be a phased exit instead, which we will prepare in advance," added Sebastian Burduja, according to Economedia.ro.

iulian@romania-insider.com

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