Romanian Energy Ministry ordered to pay outstanding compensation to energy supplier

19 February 2025

The Romanian state has lost another lawsuit filed by an energy supplier over unpaid compensation related to the government’s price cap policy for electricity. The total outstanding amount owed to all suppliers is estimated at over RON 8 billion (EUR 1.6 bln), according to industry sources quoted by Profit.ro

On January 28, a Romanian court ruled in favor of electricity supplier PPC Energie, ordering the Ministry of Energy to pay nearly RON 2.4 million (EUR 0.48 mln) within 10 days as part of the compensation due for non-household consumers. The ruling allows for an appeal. 

On February 17, in a similar case, the same court ordered the ministry to pay over RON 2.36 mln to PPC Energie.

Under current legislation, the Energy Ministry must pay 40% of the compensation amount within 10 days of the supplier’s request - without requiring validation from the National Energy Regulatory Authority (ANRE). 

PPC Energie submitted its request on November 8, 2024, but has not received any payment. The company argued in court that its last payment from the Ministry of Energy was in 2023 and noted that in other similar lawsuits, the government had eventually settled outstanding amounts. 

Last month, PPC Energie withdrew two lawsuits against the ministry, in which it had sought RON 21 mln in unpaid compensation. 

The latest court ruling concerns non-household electricity consumption from December 2023 and is just one of over 20 lawsuits PPC Energie has filed. The company’s total compensation claims exceed RON 90 mln.

For 2025, the Romanian government has allocated RON 3 bln for supplier compensation under the electricity price scheme. 

In 2024, the government paid RON 6.85 bln in compensation to suppliers, 35% less than in 2023. Revenue from windfall taxes on energy producers also dropped significantly in 2024, totaling RON 4.8 bln, a 52% decline from the previous year. 

The Ministry of Energy announced on Monday that it will propose changes to the price cap and compensation legislation this week, aiming to adjust the current framework for energy and gas subsidies.

andrei@romania-insider.com

(Photo source: Filmfoto/Dreamstime.com)

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Romanian Energy Ministry ordered to pay outstanding compensation to energy supplier

19 February 2025

The Romanian state has lost another lawsuit filed by an energy supplier over unpaid compensation related to the government’s price cap policy for electricity. The total outstanding amount owed to all suppliers is estimated at over RON 8 billion (EUR 1.6 bln), according to industry sources quoted by Profit.ro

On January 28, a Romanian court ruled in favor of electricity supplier PPC Energie, ordering the Ministry of Energy to pay nearly RON 2.4 million (EUR 0.48 mln) within 10 days as part of the compensation due for non-household consumers. The ruling allows for an appeal. 

On February 17, in a similar case, the same court ordered the ministry to pay over RON 2.36 mln to PPC Energie.

Under current legislation, the Energy Ministry must pay 40% of the compensation amount within 10 days of the supplier’s request - without requiring validation from the National Energy Regulatory Authority (ANRE). 

PPC Energie submitted its request on November 8, 2024, but has not received any payment. The company argued in court that its last payment from the Ministry of Energy was in 2023 and noted that in other similar lawsuits, the government had eventually settled outstanding amounts. 

Last month, PPC Energie withdrew two lawsuits against the ministry, in which it had sought RON 21 mln in unpaid compensation. 

The latest court ruling concerns non-household electricity consumption from December 2023 and is just one of over 20 lawsuits PPC Energie has filed. The company’s total compensation claims exceed RON 90 mln.

For 2025, the Romanian government has allocated RON 3 bln for supplier compensation under the electricity price scheme. 

In 2024, the government paid RON 6.85 bln in compensation to suppliers, 35% less than in 2023. Revenue from windfall taxes on energy producers also dropped significantly in 2024, totaling RON 4.8 bln, a 52% decline from the previous year. 

The Ministry of Energy announced on Monday that it will propose changes to the price cap and compensation legislation this week, aiming to adjust the current framework for energy and gas subsidies.

andrei@romania-insider.com

(Photo source: Filmfoto/Dreamstime.com)

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