Romania's Government is currently looking for ways to finance the scheme aimed at helping the population and companies cope with the rising energy prices. Romania has committed to one of the most generous support schemes and the Government has underestimated its costs, according to recent reports.

The estimated cost of this scheme has climbed to RON 40 bln (EUR 8.1 bln) from RON 14 bln (EUR 2.8 bln) initially announced by the Government in February, according to Ziarul Financiar. Energy suppliers say that, if they don't get the money the Government has promised, the whole energy system could crash.

“The colleagues from the Ministry of Energy and the [ruling ] coalition are thinking [...] on the one hand to compensate the population and non-household consumers and on the other hand to find funding sources [for this]," the minister of investments and European projects Marcel Boloş said speaking for Digi24.ro.

As the head of a ministry not directly involved in this matter, he was not able to provide details or explain why the supplementary (80%) tax on windfall revenues is not enough to fund the “cap and subsidy” scheme. But his statements confirm that the Ministry of Energy is still seeking alternative ways to boost revenues instead of using the money paid to the budget as taxes, supplementary taxes and dividends by the energy companies.

"They are working on a system of supplementary taxation for the producer-distributor chai and for the traders on the wholesale market, who certainly accumulate capital during this period, sometimes even unfairly. It is an option that can generate additional income for the state budget and furthermore, the compensatory measures would have a source of financing,” minister Bolos stated. 

editor@romania-insider.com

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