Romanian state-controlled natural gas company Romgaz will deliver natural gas to the power and heating plants in Bucharest at a price of RON 151 (EUR 30) per MWh, double the price it pays now, Economica.net reported.

The price is still good compared to the market prices. Nevertheless, the production cost of the heat will increase by about 60% and the final price paid by the households, which is heavily subsidized, by 20%. The mayor of the capital city must decide whether to increase the subsidy, or accept the increase in the price of hot water and heat paid by the households in Bucharest. Some 0.5 mln apartments are served by the Bucharest district heating system, which is heavily subsidized while losing a large amount of the heat pumped from its outdated plants through a network that is in desperate need of repairs.

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andrei@romania-insider.com