Radio România Internațional

Tag: prices

  • Local authorities ask for Government’s support

    Local authorities ask for Government’s support

    The representatives of Romanias County Council associations, of the Romanian municipalities, cities and communes have asked for support from the Government to ensure the co-financing of the projects run by the local communities and have also asked for solutions regarding the huge energy bills received by institutions. During a meeting with the Prime Minister, Nicolae Ciucă, the local authorities representatives have expressed their availability to be co-opted in consultations related to the implementation of the National Recovery and Resilience Plan, so that the funding should be adapted to the needs of the communities.



    They have warned that the failure to make the reforms needed to implement the National Recovery and Resilience Plan – PNRR will turn the local communities into victims. During the discussions, the mayor of Cluj-Napoca (northwest), Emil Boc, has proposed that the guidelines for implementing the Plan should be developed together with the local authorities, because they know best the problems of the communities. Moreover, he has pointed out that Romania will lose money from the National Recovery and Resilience Plan – PNRR if it does not make the necessary reforms.



    Emil Boc: Romania risks losing money from the PNRR, if the ministers do not make the reforms required under the PNRR. The collateral victims will be the local administrations. These reforms are not made somewhere outside Romania. They are made by Romania for Romanians. The reforms will make this country much more functional, with benefits for every citizen.



    In turn, the mayor of Cugir (central Romania), Adrian Teban, has pointed out that, soon, smaller cities will no longer have money to pay energy bills, which have doubled and, in some cases, have even tripled.



    Adrian Teban: “In small and medium-sized cities, the pressure on local budgets is very high, with the rising energy prices. Larger municipalities can afford it. But small cities are facing more pressure.



    Regarding the communes’ problems, the local officials have also told the prime minister that in the future they will no longer have money to pay their employees, and the communes will be left without employees. On the other hand, the Government, through the Inter-ministerial Committee Coordinating the National Recovery and Resilience Plan, has promised to take steps to speed up reforms and continue efforts to implement the Plan.



    Romania needs balanced modernization and development, so that the investments available through the National Recovery and Resilience Plan, as well as the other European and national funds, should benefit in a fair and integrated manner all communities and all citizens – the PM said during the meeting. At the same time, he has reviewed the measures taken by the Government to protect the population, the economic sectors and public institutions, such as the schools, hospitals and cultural institutions, from the effects of rising energy prices. (LS)

  • January 25, 2022 UPDATE

    January 25, 2022 UPDATE

    Holocaust — Promoting the fundamental rights and freedoms, respecting the historical truth and understanding the causes of such atrocities give us assurances that such crimes against humanity will never happen again, the Romanian President Klaus Iohannis said Tuesday at the ceremony devoted to International Holocaust Remembrance Day. He underlined that the exacerbation of anti-Semitism, xenophobia, intolerance, racism and discrimination, the attempts to rehabilitate war criminals, as well as the relinquishing of the supreme values ​​of humanity could bring back the tragic experiences of history. The Romanian president recalled that, in the streets of Bucharest, in January 1941, criminals vandalized and burned synagogues, shattered the destinies of thousands of innocent people through the most horrific tortures, all these horrors being part of a diabolical plan of mass extermination. The COVID-19 pandemic has amplified the virulence of anti-Semitic attacks and created a framework that led to the spread of conspiracy theories and misinformation, president Iohannis said. (…) In turn, the PM Nicolae Ciuca, present at the ceremony, said that the Holocaust is a dark chapter of history, pointing out that it must not be forgotten and minimized. He paid tribute to the victims of the Holocaust and presented the contribution of the Jewish community to the development of Romania.



    Ukraine — Ukraine is perfecting its backup plans for any possible scenario or Russian action. In a statement for Radio Romania, Deputy PM for European and Euro-Atlantic Integration of Ukraine, Olha Stefanishyna, mentioned the people’s strong wish for their country’s accession to NATO. It is crucial to us to see that the next steps of our country’s joining NATO materialize, on the occasion of the next summit. If the summit’s document does not include mentions of Ukraine’s future accession, this would be the equivalent Russia’s demand of stopping NATO enlargement,” the Ukrainian official said. On Monday, the situation caused by Russias aggressive actions in the vicinity of Ukraine and the Black Sea region was included on the agenda of the Foreign Affairs Council meeting held in Brussels. The Romania Foreign Minister Bogdan Aurescu proposed his counterparts to consider the possibility of holding a meeting of the Foreign Affairs Council in Kiev, as an expression of the EUs solidarity with Ukraine. He reiterated the importance of supporting the strengthening of the resilience of Ukraine and other Eastern partners, as well as of increasing the EUs involvement in finding political solutions to the prolonged conflicts in the Black Sea region.



    Measures– The Bucharest Government on Tuesday passed a set of measures to support citizens and the economy, help preserve jobs and ensure a competitive economic activity, PM Nicolae Ciuca announced. The measures will be applied in February and March. “No one will pay more than 0.16 euro/kWh electricity and 0.06 euro/kWh natural gas, irrespective of consumption. Household consumers with up to 500 kWh electricity or 300 cubic meters of natural gas will pay 0.14 euros/kWh for electricity and around 0.04 euros for natural gas, taxes included, Ciuca explained. For non-household consumers, SMEs and the food industry, prices will be capped at 1 leu/ kWh for electricity and 0.07 euro / kWh for natural gas.



    Coronavirus — 114,000 vaccine doses from Pfizer BioNTech Company for the vaccination of children aged 5 to 11 arrived in Romania on Tuesday. The vaccination of this age group will begin on Wednesday. Meanwhile, the Covid-19 incidence rate continues to rise in Romania. The biggest number of new infections was confirmed in the Bucharest-Ilfov area, where the demand for testing is high. In order to respond to these requests as soon as possible, the Health Ministry decided to open 28 testing centers. A total of 19,685 new cases of SARS-CoV-2 infection in 24 hours were reported on Tuesday, along with 44 deaths. 650 people are in intensive care.



    Transport — The employees of the Bucharest Transport Company suspended the protest action and resumed their activity on Tuesday, after five days in which the surface public transport in the Capital was blocked. We remind you that the strike was declared illegal by the Court, but the trade unionists have ignored the ruling. They were asking for salary increases and the resignation of the company’s manager, Adrian Crit. The latter told Agerpres news agency that, after five days of illegal protest that paralyzed the capital, the employees eventually understood that they cannot ignore the law and the obligations they have towards the people of Bucharest. The general mayor of Bucharest, Nicusor Dan, said that the talks would continue in order to improve the situation at the Bucharest Transport Company, depending on the available budgets. Previously, Nicusor Dan had argued that the protest had been politicized.



    Corruption — The 2021 Corruption Perceptions Index published by Transparency International shows that, despite official commitments, 131 of the 180 countries surveyed have made no significant progress in fighting corruption in the past 10 years. According to the report, Romania is no exception, and the perception of public sector corruption has been unchanged for a decade. With only 45 points out of 100, Romania remains among the most corrupt countries in the European Union, alongside Hungary (43 points) and Bulgaria (42 points). Transparency International’s analysis shows that the Covid-19 pandemic has given governments the opportunity to expand their executive power, hide public information and restrict citizens rights. In Romania, one of the most vulnerable areas was public procurement, with effects on the transparency of the public expenses during the pandemic. (EE)



  • New measures to reduce energy bills

    New measures to reduce energy bills

    Focusing exclusively on the topic of reducing the high electricity and gas bills, this years first meeting of the ruling coalition made up of the National Liberal Party (PNL), the Social Democratic Party (PSD) and the Democratic Union of Ethnic Hungarians in Romania (UDMR) put together the solutions found by these parties to the problem. The proposed solutions, however, mirrored the parties different visions. As urgent measures, to be enforced starting February 1st, the PSD proposed capping the prices and reducing the VAT from 19% to 5% for household electricity and gas consumers. The Social Democrats also came up with a set of measures such as the recalculation, without penalties, of the bills that have not been issued correctly, fining the abuse and over-taxing the profit of energy companies.



    The Liberals, on the other hand, have announced they do not want just a short-term solution, but a plan with firm budget allocations to investment in energy. At the same time, PNL says that the measures in force, which they say reduce bills by 33%, must be implemented. The meeting ended with an accord and the Government is to take new measures to cut the energy and gas bills. PM Nicolae Ciuca: “The energy ceiling will decrease from 1 leu to 0.8 lei per KW. Also, the consumption limit to which this price applies will go up from 300 to 500 KW. The price of 1 leu per KW will be capped for SMEs. The cap for natural gas will go down from 0.37 to 0.31 lei per KW and the consumption limit for five months will be increased from 1,000 to 1,500 KW. ”



    Moreover, all incorrect bills will be recalculated, without consumers being fined or disconnected. The measures for household consumers and SMEs will be applied from February 1st to March 31st and will be included in an Emergency Order adopted by the Government next week at the latest. Meanwhile, the National Authority for Consumer Protection has fined the energy suppliers that issued the bills for November and December 2021 without observing the rules in place and had them recalculate the bills. According to official data, although more than 90% of them observed the new legislation, one of the few suppliers that didnt, has contracts with 30% of the household consumers in the country. Another big supplier has announced that more than half of the bills it issued comply with the new regulations. (EE)




  • January 14, 2022 UPDATE

    January 14, 2022 UPDATE

    ENERGY The
    Romanian government is planning an emergency order within the coalition formed
    by the National Liberal Party, the Social Democratic Party and the Democratic
    Union of Ethnic Hungarians in Romania, to support the citizens affected by the
    rise in electricity and natural gas prices. This announcement was made by prime
    minister Nicolae Ciucă after a meeting of the three-party council for social
    dialogue. He said protection measures will expand beyond 1st April based on a
    special bill. Trade unions say electricity and natural gas prices should be
    capped at the level of December 2020, before deregulation, both at the
    producers’ end, and at the suppliers’ end, for at least another six months,
    even a year. They say the cap should be uniform for the population and small
    businesses.


    FOREIGN POLICY The EU hopes to convince the Russian president Vladimir Putin through
    dialogue to give up his intentions to attack Ukraine, but it is also preparing
    tough sanctions to discourage Russia, the EU foreign ministers convening in
    Brest, France concluded on Friday. According to Radio Romania’s correspondent
    in Paris, the French foreign minister Jean-Yves Le Drian, whose country is
    holding the rotating presidency of the EU Council, said Europeans are united
    and determined to make their voice heard. The EU foreign ministers are
    preparing sanctions against Moscow, and new talks on the matter are scheduled
    to take place in Brussels on January 24. Romania was represented in Brest by
    foreign minister Bogdan Aurescu who, according to the Foreign Ministry, pleaded
    for a number of elements that best reflect Romania’s interests. He said the
    EU’s partnership with NATO and the US must be clearly emphasised, and stressed
    the importance of presenting appropriately the current security situation in
    the Eastern Neighbourhood, including the Black Sea region.


    COVID-19 Romania reported on Friday almost 9,900 new Covid cases, 60% more than a
    week ago, as well as 30 deaths, including three recorded earlier. Some 450
    Covid patients are in intensive care. 230 outpatient centres are now available
    across the country for the persons infected with Covid to check their health
    condition and receive free antiviral medicine based on daytime hospitalisation,
    irrespective of whether they have health insurance. Health minister Alexandru
    Rafila says it is very important for patients to use these centres, unless they
    are in critical situation, thus lowering pressure on hospitals.


    LIST The National Committee for Emergency Situations updated the list of
    high COVID risk countries. All countries in the EU and the European Economic Area
    remain in the red tier, along with non-EU countries like Turkey, Israel and the
    US. South Africa, Brazil and India are no longer included in the red list. Among
    Romania’s neighbouring countries Serbia is on the yellow list, whereas Ukraine
    and the Republic of Moldova are now in the green tier. The new list takes
    effect on January 16.


    CULTURE DAY Romania’s National
    Culture Day is again celebrated this year through numerous concerts,
    performances, exhibitions, guided tours and workshops. We have a sacred
    duty. To honour our personalities, our works of art and our national
    heritage, said culture minister Lucian Romaşcanu, adding: I’m
    encouraging all Romanians, of all ages, to continue to respect their history,
    national identity and traditions, for they are the only visiting card that
    never loses its currency. National Culture Day has been celebrated for
    the last 12 years on 15th January, on the anniversary of the birth of national
    poet Mihai Eminescu. As part of the programme of events held this year, the
    Romanian Academy Friday hosted a special event attended by leading local
    cultural figures. (tr. A.M.P., C.M.)

  • Europe and energy prices

    Europe and energy prices

    The energy crunch will be once again on the agenda of the December European
    Council meeting, senior EU officials announced after last week’s meeting
    devoted to this topic.


    In the meantime, the Commission is
    tasked with running an analysis on the operation of the European electricity
    and natural gas market and on the carbon trading market, after several member
    states blamed the rise in energy prices on problems in these fields.


    Nuclear energy is not mentioned in
    the Council meeting’s conclusions although it had been included in the original
    text. However, countries like France, Romania and others requested the European
    Commission to rank nuclear energy and gas as transition sources this autumn,
    until clean energy sources will be able to cover most of the Union’s energy
    needs.


    There is no doubt that if we
    seek cleaner energy, we need interim solutions. It is very possible and
    desirable for renewable sources, including solar energy, wind power and so on,
    to account for most of the energy output by 2040-2050. But until we get there,
    our opinion in Romania is that we need to use nuclear power plants, to upgrade them
    and broaden nuclear power sources. At the same time, Romania needs and is
    determined to use natural gas for heating, for electricity production and for
    industry. So we certainly must have nuclear power and gas, the president of
    Romania Klaus Iohannis said in Brussels, and emphasised that it would be
    excellent for these forms of energy to be fundable from EU sources.


    The European Commission president,
    Ursula von der Leyen, seems to have eventually accepted this view, and said
    after the meeting that, in the medium and long term, additional steps will be
    prepared to enhance Europe’s energy independence and resilience.


    She said a stable source, i.e.
    nuclear power, is necessary, and the role of natural gas as transitional fuel
    will be preserved. The Commission will present a draft document in this
    respect, von der Leyen said.


    She added that efforts are made to
    set up a strategic gas reserve and to jointly procure energy. We will step up
    initiatives to contact as diverse suppliers as possible. We will diversify
    sources and speed up interconnection, the Commission president also said.


    EU reference prices for natural gas soared
    by over 300% since January, because of supply problems and high demand. The hike
    pushed electricity prices in Europe to the highest level in recent times, and
    the situation is likely to continue until the end of the year, keeping heating bills
    on the rise. To mitigate the impact on citizens, Romania and other member
    states are taking measures to support vulnerable households and struggling companies.
    (tr. A.M. Popescu)

  • October 22, 2021 UPDATE

    October 22, 2021 UPDATE

    COVID-19 The interim cabinet Friday introduced new restrictions in Romania, as
    the country is struggling with an unprecedented epidemiological crisis. The
    measures will take effect on Monday, 25th October, and will be valid
    for 30 days. Face covering will be compulsory in all indoor and outdoor public
    areas. Access to all central and local public institutions and to the offices
    of private businesses will be conditional on the digital COVID certificate. A
    ban on outdoor concerts and shows, as well as on private events, including
    weddings, conferences and workshops, will also be in place. Shops will only be
    open between 5 am and 9 pm, restaurants will be open until 9 pm but will only
    admit COVID certificate holders. A night curfew will also be introduced,
    between 10 pm and 5 am, for the unvaccinated. Also on Monday, public
    and private kindergartens, primary, secondary schools and high schools will
    take a 2-week break. On Friday the Strategic Communication Group reported 15,410
    new SARS-CoV-2 cases and 357 COVID-related deaths. 1,848 patients are in intensive care.
    Over 128,000 people got vaccinated in the last 24 hours.


    AID Romania is receiving aid from several European countries, including
    Italy, Switzerland, Austria, Germany, Hungary and Poland, as well as from the
    World Health Organisation. The aid consists in medicines, equipment, tests, and
    the transfer of some COVID patients, the head of the Department for Emergency
    Situations Raed Arafat announced on Friday.Five Romanian COVID patients, in a critical condition, were taken on
    Friday to Austria and Poland, by 2 military aircraft. Other patients have been
    transferred to Hungary.


    GOVERNMENT In Romania, the interim
    defence minister Nicolae Ciucă, designated by president Klaus Iohannis to form a
    new government, initiated negotiations over parliamentary support. A first
    meeting was held on Friday, with the head of the Democratic Union of Ethnic
    Hungarians in Romania, Kelemen Hunor. The latter said his party would stay in
    power together with the National Liberal Party, and mentioned that in the
    coming days the governing programme and distribution of cabinet seats would be
    discussed. Save Romania Union is waiting for an invitation to talks, and will try to persuade the Liberals to go for a
    coalition government with majority support in parliament. PSD says it will talk
    with Nicolae Ciuca about a parliamentary majority to support the minority
    government, and AUR has stated it will not support such a government. The Prime
    Minister Designate has called on all political actors to support the new cabinet,
    so that Romania can quickly overcome the medical and economic crisis it is
    going through.


    AUTOMOTIVE Registrations of new hybrid vehicles in the EU accounted for nearly
    21% of the Union’s automotive market in the 3rd quarter of the year,
    outperforming Diesel vehicle registrations for the first time. According to the
    European Automobile Manufacturers’ Association, in July-September sales
    of petrol-based cars dropped by 35%, while registrations of new diesel cars
    more than halved across the EU region. Alternatively-powered vehicles saw a 69%
    increase in sales in Central Europe in the same period. In Romania, sales rose
    by over 153% compared to 2020.



    MOLDOVA The Parliament of the Republic of Moldova Friday
    declared a 30-day state of emergency in the country over a natural gas
    shortage. The government requested the measure in order to be able to procure
    natural gas from alternative sources, given that the Russian supplier Gazprom is
    no longer providing sufficient quantities to meet the demand, Radio Chişinău
    announced. According to the resolution, until 20th November, a
    special procedure will be in place, to speed up the procurement of natural gas.
    If necessary, energy consumption will be rationalised, and instruments to
    quickly collect payments from consumers will be introduced. According to Radio
    Chişinău, negotiations with the Russian energy giant carry on, but in the
    meantime the government is discussing with other states as well, including
    Ukraine, Romania, and Poland, to purchase natural gas from alternative sources.
    Natural gas prices has risen steeply in recent months in international markets,
    and some officials accuse Russia of energy blackmail.

    EUROPEAN
    COUNCIL The European Council president Charles Michel and the head
    of the European Commission Ursula von der Leyen, announced on Friday at the end
    of a meeting in Brussels, that the energy topic will be once again on the
    agenda of the December meeting of the European Council. In the meantime, the
    Commission will conduct an analysis of the EU electricity and natural gas
    market and on the carbon transaction market, after several member states blamed
    the recent energy price rises on problems in these areas. An emergency meeting of
    EU energy ministers was also scheduled for next week. Romania was represented
    by president Klaus Iohannis, who emphasised ahead of the meeting the
    need to quickly identify
    efficient short-term solutions, as the current energy crisis will have serious
    effects in all EU countries, with a profound socio-economic impact.

    (tr. A.M. Popescu)

  • Instruments Against Rising Energy Prices

    Instruments Against Rising Energy Prices

    EU states may grant home consumers emergency support under the form of vouchers, for instance, or by partial payments on bills, or state aid and tax incentives to businesses, in order to dampen the impact of exceptional boosts in energy prices all over the world. These are just some of the temporary measures recently recommended by Brussels, which aim primarily at vulnerable households and SMEs. Governments are advised to expand access to renewable energy acquisition contracts, since clean energy is not affected by price shocks.




    Last but not least, the idea emerged to create a strategic natural gas reserve by joint acquisition, as the Union has proceeded in the case of vaccines. Figures indicated that the EU is faced with the highest gas prices in the last 15 years, a situation reflected in the rising trend in electricity prices. The phenomenon is felt around the world, and is closely related to a comeback of the economy post-pandemic. For Romania, higher prices are additionally related to the complete liberalization of the energy market on July 1 this year. The consequences are already being felt in the prices of foodstuffs, and implicitly in inflation. Here is economic analyst Constantin Rudnitchi:


    “It is clear that the Romanian economy has been affected. We see a September rate of inflation of 6.3%, which is very high. We may already see the ripple effects of energy prices in other prices. First in foodstuffs prices, but not only, because there have been more price categories that went up. Unfortunately, for Romania it may be only the beginning. There are already forecasts that inflation this year may reach 7%, even 7.5%. It seems like an unstoppable wave, not only in Romania, all of Europe is seeking solutions.”




    One of the factors in rising energy prices is Russia, one of the main sources of gas in Europe, a country that has a policy of moving away from moving its gas west through Ukraine. Moscow is undermining European energy security in order to promote its Nord Stream 2 gas pipeline, which would create a new direct energy connection between Russia and Germany via the Baltic Sea, according to foreign policy analyst Iulian Chifu:


    “The Russian Federation plays a nefarious game of undermining European energy security in order to promote its Nord Stream 2, and make it functional. It has to be said that, even if they announced they finalized the pipeline, its ability of making it functional is very low. There are very laborious validation procedures. All are beholden to US sanctions. Also, it has to be seen that in the last year, Russian exports to Europe have been very low, including those meant for storage. In such a context, the main thing is that gas prices went up, because you will be purchasing in winter, not spring or summer, when no one is buying. Secondly, there is no route to bring it in, barring Ukrainian lines. That is what the pressure is for, in order to gain approval for Nord Stream 2.”




    Russia is not using energy as a weapon, and is willing to discuss with the EU the stabilization of the European energy market, says President Vladimir Putin, who also insists on depolitization of the energy issue. The Kremlin leader assured everyone that Russia is totally in compliance with its commitments in terms of gas deliveries, which for Europe this year went up 10% in pipeline delivered gas, and 15% in LNG deliveries. Winter getting closer, however, found stored gas in Europe in very low quantities, including those in Romania. Speaking for Radio Romania, EuroMP Gheorghe Falca talked about the measures that Bucharest could take on medium term:


    “A crisis is bad, but it also provides an opportunity to plan for the future. Romania did not make blanket gas purchases, because Romania is a gas producer, which is why we only purchase during winter, and we have a higher gas price now, because we did not make a blanket purchase. Now the Commission asks for purchases for the EU as a whole, which means we have to try to increase storage capacities, thus avoiding future crises. Moreover, on medium term, we can say that the Ministry of Energy has available a 10 billion Euro modernization fund, which means that in six years it can implement solar and wind energy. The National Program for Recovery and Resiliency has available 1.6 billion Euro for the same purpose. We also have 10 billion dollars in order to modernize reactor 1 at the nuclear plant in Cernavoda, as well as to finalize reactors 3 and 4. We are interested in extracting Black Sea off shore gas, we are talking about one billion cubic meters per year. In addition, we have 15 river basins, and we should adjust legislation to create microdams, avoiding pollution, appeasing the ecologists, and taking advantage of these basins.”




    At the same time, solving the energy crisis may lead to a more stable and predictable economy, and increased investments, says the EuroMP.

  • Romanian Senate caps electricity prices

    Romanian Senate caps electricity prices

    Electricity and natural gas prices for household consumers in Romania will be subsidised until the end of March, in keeping with an emergency order passed by the Bucharest Senate on Monday. Senators from all political parties decided unanimously that, while the order is in force, electricity prices will be capped at maximum 1 leu per kilowatt and the natural gas price at 0.37 lei per kilowatt-hour. Household consumers will thus benefit subsidies of 26 bani per kilowatt-hour for their electricity bill and of 33% of their natural gas bill by per month. Moreover, vulnerable consumers can also postpone payment of their bills by 6 months. Small and medium-sized companies will have their VAT slashed from 19% to 5% and will be exempt from paying the green certificates and the co-generation contribution.



    Liberal senator Toma Petcu explains: “We have increased the subsidy level from 25% to 33%, which is a lot. Also, we have raised the ceiling for these subsidies to 1,500 megawatts for electricity and 1,000 megawatts for gas. I believe it is very important to allow vulnerable consumers to postpone the payment of their bills by up to six months. We have all agreed we need to put a cap on prices. The difference between the capped prices and the reference prices is subsidized and we get to the level proposed by our Social Democrat colleagues. All legal entities can definitely access this support scheme. “



    Social Democrat senator Daniel Zamfir, although in favour of capping energy prices, says the normative act, in its current version, is not applicable. In his opinion, the legislative proposals of the Social Democrats, discussed in plenary session and rejected by vote, would have been a better solution to the energy price problem. Daniel Zamfir: “You chose, because of your ego, to kill our perfectly good initiative just because it comes from PSD. You did not have the gut to admit that the subsidy plan will be difficult apply and people will not benefit this measure. ”



    Romania has seen the highest increase in energy and natural gas prices in the EU, the senator also said. The price of natural gas went up by 334%, so the subsidy solution would have been insufficient and the fact that all parties agreed to our idea of capping on prices is a good thing. We believe the levels of these caps are high and they can be modified once the law in the Chamber of Deputies, he also said. According to the document, the profit of energy producers will be overtaxed by 80%. The document, aimed at keeping energy prices in check, will be submitted to the Chamber of Deputies, the decision making body in this case. (EE)


  • Fines for energy suppliers

    Fines for energy suppliers

    Four Romanian natural gas suppliers (Engie, E.ON
    Energie, Restart Energy One and Premier Energy) have been fined for plans to
    increase tariffs while under fixed-price contracts. They are now bound to notify
    their clients who entered fixed-price contracts, that the price of natural gas
    supply will remain unchanged throughout the contractual period.


    The National Energy Regulatory Authority (ANRE) found
    that these companies have breached their contractual obligations. The suppliers
    were fined for having drawn up standard contract offers that failed to specify either
    the contract period, or the terms and conditions for unilaterally cancelling
    contracts.


    The fines amount to some 545,000 euro, and the
    Authority promises to continue monitoring the conduct of all suppliers, and in
    case new breaches of relevant legislation are found, to address them
    accordingly.


    In response, two companies announced they would
    take the matter to court, and argue they had done nothing wrong and that
    international natural gas prices have skyrocketed. They warn that, in case the
    measures intended to mitigate the effects on end consumers are not based on
    fair and just economic principles, this will have swift and substantial
    repercussions on suppliers, and implicitly on their clients, not only in terms
    of prices, but also of the safety of supply ahead of the winter season.



    In this very difficult context, the respective
    companies argue, all stakeholders-authorities and private operators-need to work
    together to identify viable, fair and responsible solutions to overcome this
    crisis.



    With 95% of the bills accounted for by the natural
    gas procurement, storage, transport and distribution costs, suppliers only gain 5% of the invoiced amounts, the operators in question also explained. After
    the gas prices rose spectacularly, Romanian suppliers have raised tariffs
    several times, and these successive price rises and the small profit margin
    reflect in consumers’ bills. For
    example, this summer the average price was 0.12 leu / Kwh, while at present it
    reaches 0.6 leu / Kwh, i.e. 5 times more.


    The authorities are considering a ceiling on
    energy prices, but this can be done through a state-aid scheme that must be
    approved by the European Commission, the line minister Virgil Popescu said. He emphasised
    that, if suppliers are not bound to purchase electricity for the smallest price
    in the market and if they are not monitored, energy bills will increase
    significantly in a matter of months, and it is citizens who will stand to
    suffer. (tr. A.M. Popescu)

  • Energy prices cause growing concern

    Energy prices cause growing concern

    A committee has been set up in the Parliament of Romania to investigate the substantial increase in the price of natural gas and electricity. The committee found that these increases are in line with European trends.



    Energy prices in the continental market have reached record-high levels, fuelled by the costs of green certificates and the natural gas prices. Another problem for the European energy market is the uncertainty around gas imports from Russia, given that European storage facilities were only 70% full.



    The European Commission vice-president Frans Timmermans said the unprecedented electricity prices in member states prove that the Union must give up fossil fuels and step up the transition to green energy. He also noted that, while fossil fuel prices rose substantially, the costs of renewable energy remain low and stable.



    EU member states like Italy, Spain and Greece responded to the rise in conventional energy prices and have already announced aid measures to help people pay their bills. In Bucharest as well, the government is planning to help households cover their electricity and natural gas bills.



    Under a draft emergency order first discussed on Wednesday, the government would subsidise electricity prices by 3.6 eurocents per KWh and natural gas bills by 25%. Beneficiaries will include households that use between 30 and 200 KW of electricity per month and between 100 and 1,200 cubic metres of natural gas per year. The average price used by the government in its plans is 16 eurocents per KW, and bills will be around 3.6 euro smaller per 100 KW.



    The government is also looking at options to introduce a natural gas price ceiling. PM Florin Cîţu said this should not affect investments in the economy, and that the measure requires talks with the Competition Council and the European Commission. According to the energy minister Virgil Popescu, such a ceiling would discourage foreign investments in Romanias electricity and natural gas extraction markets, because companies would be forced to sell for less than the market price.



    The Social Democratic Party in opposition announced that in the forthcoming period they will table a bill introducing a ceiling on electricity and natural gas prices for household consumers, as a stop-gap solution. The Social Democrats vice-president Mihai Tudose criticised the right-of-centre government for deregulating the energy market at the worst possible time, when the domestic output is considerably below its potential. (tr. A.M. Popescu)

  • July 1, 2020

    July 1, 2020

    COVID-19 So far 27,296 coronavirus infection cases have been reported in Romania, with 326 new cases confirmed over the past 24 hours Over 20,749 of them have recovered, and 1,667 people died. The healthcare minister Nelu Tătaru announced 2 days ago that the increase in the number of new COVID-19 cases prompted the authorities to postpone the lifting of further restrictions as of July 1. Three relaxation stages have been introduced since mid-May, when Romania switched from a state of emergency to a state of alert. Among the Romanians living abroad, 4,795 have so far tested positive for the novel coronavirus, and 115 of them died.




    ECONOMY In Bucharest, in the presence of president Klaus Iohannis and Cabinet members, PM Ludovic Orban is presenting tonight a national economic recovery plan following the coronavirus crisis. The PM has recently stated that the regulations required for the implementation of this plan will be adopted shortly. According to the prime minister, infrastructure investments are a fundamental pillar in upgrading and restarting the economy, because Romanias priority is modernisation through investments in transport, energy, healthcare, communications, education and agriculture.




    NATURAL GAS The Romanian natural gas market is fully liberalised as of July 1. Tariffs are no longer regulated by the government, but by demand and supply mechanisms. The liberalisation comes at a time when the energy market is highly concentrated, with 2 companies accounting for 90% of the household consumers. These companies have sent their clients offers with the same prices as before, and unless they receive an answer, the new contracts will take effect by default. A week ago, the Energy Minister, Virgil Popescu, told AGERPRES news agency that households should pay 10-15% less for natural gas after deregulation. He explained that unless major suppliers cut down prices, the Competition Law enables the government to intervene in the market for a 6-month period.




    PARLIAMENT The Parliament of Romania convenes until mid-July for a special session. The Chamber of Deputies is set to discuss a number of bills, including the one setting the date of local elections and an initiative banning people with criminal records from running for public office. On Monday the Deputies will hear PM Ludovic Orban on the procurement contracts signed during the pandemic. In turn, Senate is also to vote on the local elections bill, after the Government decided the election should take place on September 27.




    EU Germany will hold the rotating presidency of the Council of the European Union for the next 6 months, taking over from Croatia. The coronavirus crisis and its aftermath is the main challenge for Berlin during this term in office, according to a plan approved by the German government on June 24, and entitled “Together for Europes Recovery. Germanys priorities also include the completion of the Brexit negotiations and topics like environment protection, digitisation and Europes relations with China and the US. With the EU facing the deepest economic recession since World War 2, member states must agree in the following months on a multi-annual budget for 2021-2027 and on the operation of the 750-billion euro European Recovery Fund designed by the European Commission to support the economies of the countries that were hit the worst by the pandemic, particularly Italy and Spain.




    PANDEMIC The total number of COVID-19 cases worldwide passes 10.5 million, with the death toll standing at 514,000, and 5.8 million patients recovered, according to Worldometers.info. In the US, the last 24 hours brought over 47,000 new cases, the highest daily rate since the start of the pandemic, Reuters reports. More than 126,000 Americans died and millions have lost their jobs. The economy collapsed in the first quarter, and is expected to further drop in the second one. Meanwhile, the EU has approved today a list of safe countries for non-essential travel. The list, which includes 14 countries (Algeria, Australia, Canada, Georgia, Japan, Montenegro, Morocco, New Zealand, Rwanda, Serbia, South Korea, Thailand, Tunisia, and Uruguay) will be updated every 2 weeks, depending on local COVID-19 developments.


    (translated by: Ana-Maria Popescu)

  • Natural gas market to be deregulated

    Natural gas market to be deregulated

    The Romanian energy sector underwent dramatic changes in 2019, according to data made public by the National Statistics Institute. In the first 8 months of the year, the country turned from an energy exporter into a net importer, and the natural gas and electricity output nosedived. Specifically, electricity imports went up 72.8%, gas imports rose by 85.7%, while electricity exports fell by 37.5%. The natural gas output saw a 2.4% decline and the electricity output dropped 3.4%.



    These negative changes in the energy sector are the effects of the controversial Government Order no. 114/2018, analysts say, explaining that distortions in the Romanian market pushed the natural gas price above the regional average, both for industrial consumers and for households. Here is the former president of the National Energy Regulatory Authority Niculae Havrilet, currently a secretary of state with the Energy Ministry:



    Niculae Havrilet: “Even for households, the regional average price is lower than in Romania, namely 12 euros per MW, 59-60 lei, which is below the 68 lei per MW, the gas price set for households under Order 114.



    The roughly 14 euro cap on natural gas prices for households, which was below the market price at the time, led to an increase of prices in the open market, pushing the prices charged to industrial consumers up to almost double the regional average. The increase rippled across the national economy throughout 2019, with prices for all products and services going up.



    Two months into its term in office, the Liberal Cabinet repealed in December the provisions in Order 114 concerning energy companies and caps on the prices charged by natural gas and electricity producers. The Government and the National Energy Regulatory Authority also decided that as of July 1 this year the state will fully deregulate the natural gas market.



    Unlike electricity prices, which will be liberalised next year, the decision to immediately deregulate prices in the natural gas sector was prompted by the favourable global context, in which Romania may bring its gas prices down to match international levels.


    (translated by: Ana-Maria Popescu)

  • October 15, 2019

    October 15, 2019

    GOVERNMENT The President of Romania, Klaus Iohannis, carries on today his consultations with parliamentary parties on the appointment of a new prime minister and the formation of a new Cabinet. The talks began on Friday, one day after Viorica Dancilas government was dismissed through a no-confidence vote in Parliament, and continued on Monday in a narrow format. Today the head of state is discussing with the leaders of Save Romania Union, the Democratic Union of Ethnic Hungarians and the National Liberal Party. So far the talks point to a government formed by or around the National Liberal Party, which pleads for a Cabinet of 16 ministries at most. The Liberals announced they are ready to take over power, and the party leader Ludovic Orban is their nomination for prime minister. Save Romania Union spoke in favour of early elections and has several requests in exchange for supporting a new government, including a two-round local election system and a law abolishing compensatory appeals. The Democratic Union of Ethnic Hungarians on the other hand wants mayors to continue to be elected in one round, while the ex-PM Victor Pontas Pro Romania party says it would support the good projects initiated by a new cabinet. The Peoples Movement Party is willing to be part of the new government alonside the Liberals, but will not work with ALDE and Pro Romania. The Alliance of Liberals and Democrats says they will not be part of a new government, and supports a Liberal Cabinet. The Social Democratic Party turned down the invitation to consultations, and its leader Viorica Dăncilă announced the partys parliamentary group would not vote for the new government.





    DEFENCE Representatives of the South-East European defence ministries (SEDM) convene in Bucharest on Wednesday. Romania is represented by the state secretary with the Defence Ministry Doru Claudian Frunzulică. According to a Defence Ministry news release, the meeting is an opportunity for Bucharest to reconfirm its commitment to the projects implemented as part of this initiative, as well as to support proposals for the consolidation of the SEDM as the main cooperation platform in South-East Europe. SEDM is a regional initiative designed to help maintain peace and strengthen neighbourhood and close cooperation among East-European countries, by fostering political-military dialogue and involvement in practical projects in the field of regional security and stability.





    PRICES In Romania, the Foodstuff Price Monitor has been launched today. It is a platform designed to help citizens to contrast food prices charged by stores across the country. The users will be able to choose between around 30,000 types of products, accounting for half of the total foodstuffs in the market. The project is similar to the one that compares fuel prices, launched in June. The new platform is available as a mobile phone app and on the internet at monitorulpreţurilor.info.





    BREXIT Londons most recent proposals regarding Brexit are not good enough, the EU chief negotiator Michel Barnier said on Tuesday, at the General Affairs Council meeting in Luxembourg, according to diplomatic sources quoted by Reuters. Barnier also said that he needed a legal text by the end of the day, in order to be able to recommend that EU leaders approve an agreement at the European Council due on October 17 and 18. Otherwise, Michel Barnier is likely to suggest additional negotiations with London after the EU summit concluding on Friday. Without an agreement between London and the EU by October 19, a law passed in September forces the British PM Boris Johnson to request a 3-month postponement of UKs exit. London and Brussels are trying to reach common ground on means to prevent a post-Brexit return to a physical border between Northern Ireland, a part of the UK, and the Republic of Ireland, which will still be an EU member.





    FOOTBALL Romanias football team plays against Norway in Bucharest today, in Group F of the 2020 European Championship qualifiers. Spain tops the group ranking with 19 points, followed by Sweden with 14, Romania – 13, Norway – 10, Malta – 3 and Faroe Islands with 0 points. The top 2 teams in each group qualify into the final tournament. On Monday night, Romanias Under 21 team defeated Northern Ireland on home turf, 3-0, in Group 8 of the 2021 European Youth Championship. On Thursday, also on home turf, Romania beat Ukraine, 3-0, after last month it had lost to Denmark, 1-2, away from home. In June Romania Under 21 qualified for the first time in the semi-finals of the continental tournament in Italy and San Marino, thus securing their ticket to the Tokyo Olympics.


    (translated by: Ana-Maria Popescu)

  • Fuel excises and prices

    Fuel excises and prices

    As of Friday, the excise duty on fuels is higher by some 3.5 Eurocents per liter. Another similar increase will be operated on October 1st. The measure, aimed at bringing more money to the state budget, was taken by the leftist Government although early this year the extra excise duty of 7 Eurocents per liter had been eliminated.



    In support of this latest decision, the Romanian Finance Minister Ionut Misa said that, this summer, the petrol price in Romania was the lowest in the whole of the EU and the price of diesel was the third lowest. He has also said that the decision to raise the excise fuels in two stages was taken in order to avoid a shock in terms of consumption, which would trigger price rises. However, financial analysts argue that this will certainly have a domino effect in the Romanian economy. Analyst Cristian Paun explains:



    Cristian Paun: “ An increase in the extra excise duty will be reflected in prices. Fuels are related to every type of transportation and production. Therefore, when we see a product on a store’s shelf, it is clear that fuel was used to produce it and to transport it. Not to mention the customer who went to the store by car or bus to buy it. This extra duty does not but reflect the crisis the state budget is in, and the effects envisaged are short lived. Therefore, it could be seen as a solution in the short run, but in the long run it will clearly be damaging, because it will not help develop any sector of the economy.”



    The National Union of Romanian Employers’ Association strongly disapproves the Government’s measure, saying that all prices of goods and services will go up, and this might even trigger a growth in the inflation rate, after a period of relative stability. The Union draws attention to the fact that many carriers will have to close their businesses and thus jobs will be lost.



    The carriers’ discontent is also amplified by the fact that even before the introduction of the additional duty, the prices of fuels went up with no reason. To ease tension a little bit, Prime Minister Mihai Tudose has announced that next week the Government will hold a meeting on this very issue. Specialists believe that the growth is artificial, imposed by the big chains of gas stations in the country, and not a natural consequence of price evolution at global level.


  • April 27, 2016 UPDATE

    April 27, 2016 UPDATE

    Until May 1st, candidacies for the local elections of June 5th in Romania can be contested. The deadline for political parties, election alliances, ethnic minority organisations and independents to submit their candidacies was Tuesday. The election campaign begins on May 6th and is due to end on June 4th. This is the third time since the fall of the communist regime when a technocratic government has organized elections, after those organised by the Theodor Stolojan Cabinet in 1991 – 1992 and the Mugur Isarescu Government in 1999-2000.




    Freedom House Romania released a report on the recovery of losses and seizure of the proceeds of crimes. The NGO says that only one-third of the losses are subject to seizure or lien orders. The report also quotes a provisional assessment by the National Fiscal Administration Agency (ANAF) according to which all the 20,000 enforceable titles registered in Romania account for more than 1.5 billion euros. According to the report, in November last year, a special department was set up as part of the tax authority to enforce final rulings in criminal cases.




    The Romanian Culture Minister, Vlad Alexandrescu, announced his resignation on Wednesday via social media. The decision comes against the background of a scandal at the National Opera House in Bucharest, which has seen open conflicts these past few days between the new management, the conductors Vlad Conta and Tiberiu Soare, and the dancer Johan Kobborg, who was in charge with the institutions ballet company. Vlad Alexandrescu is the third member who left Dacian Ciolos technocratic Cabinet in the past two weeks, after the labour minister Ana Costea and the minister for European funds Aura Raducu. A professor at the University of Bucharest and former ambassador of Romania to Luxembourg, Vlad Alexandrescu was appointed Culture Minister in November 2015.




    In Romania, natural gas prices for household consumers will be cut by an average 1.5% as of May 1, according to the National Energy Regulatory Authority. The decision comes after natural gas distribution tariffs went down. According to the regulator, the price of imported gas will continue to drop and in the third and fourth quarters of this year it will get lower than the price of domestically produced gas, by an average 10%. The national demand at the moment is around 15-16 million cubic metres per day, and imports reach 1.5 million cubic metres.




    The executive committee of the Social Democratic Party, the largest left-wing party in Romania, Wednesday decided to expel Valeriu Zgonea, its executive president and also the Speaker of the Chamber of Deputies. The Social Democrats will also withdraw their support for Zgonea in Parliament. The decision came after Zgonea demanded the resignation of the Social Democratic leader Liviu Dragnea, who received a suspended sentence on Friday in an election fraud case. The Court ruled that in 2012, Dragnea, as secretary general of the Social Democratic Party, used a variety of methods to illegally get people to vote in a referendum on the impeachment of the former right-wing president, Traian Băsescu. The referendum eventually failed for lack of quorum.



    The Chinese capital city Beijing Wednesday hosted the second edition of a conference entitled Media 2020 staged jointly by Radio Romania and the Chinese national radio station. The conference was a unique debate platform for the 300 representatives of major audio-visual companies from Asia, Europe, the Middle East, America and Australia attending. High on the agenda were talks on implementing the UHDTV systems and the way in which new technologies can help radio stations, which cannot rely on images, to improve the coverage of events around the world. The way in which the digitization of radio stations, journalism and social networking are seen in Asia and Europe, and promoting culture through festivals also represented issues of topical interest for the participants in the Media 2020 conference. The conference ended with a recital entitled “Enescus Violin given by violinist Gabriel Croitoru accompanied by pianist Horia Mihail, at the Concert Hall of the Chinese public radio.