Government of Romania commits to reducing electricity costs with new strategies

Romania Announces New Measures to Reduce Electricity Prices

The Romanian government has announced a series of measures aimed at reducing electricity prices for consumers and businesses. According to Energy Minister Bogdan Ivan, the new measures include five key initiatives.

Firstly, the government will operationalise a reform involving guarantees for wholesale energy transactions to reduce speculation. No further details about this reform were provided.

Secondly, the government will centralise energy-related financing programs, coordinating around 40 funding lines currently spread across ministries. A new task force led by the Ministry of Energy will be established to manage these centralised financing programs.

Thirdly, the government will implement a single purchasing mechanism to address technological consumption in distribution, currently accounting for 20% of operators' costs.

Fourthly, buyers must now provide a 10% guarantee for purchases over six months and 5% for shorter contracts.

Lastly, dynamic pricing combined with smart meters and digitally integrated systems will be introduced. Minister Ivan claims that this could potentially cut consumer bills by up to 24%.

One of the measures, the market maker mechanism, has a legal framework created by the Energy Regulatory Authority (ANRE). However, no information was given about the consultation with major energy producers regarding this mechanism.

The agreed measures will be adopted by the government through a memorandum, as announced by Minister Ivan. The government plans to implement these measures within a period of two weeks to six months.

Minister Ivan stated that through this act, there will be a clean slate in everything that means funding for energy and energy efficiency in Romania. He also mentioned that a production line for smart devices in Romania, serving both domestic and European markets, is expected to be announced soon.

The newest Romanian government measures to reduce electricity prices differ from previous reforms by centralizing financing programs for energy and energy efficiency into a single dedicated fund or mechanism. This centralization aims to improve efficiency and impact in addressing electricity cost burdens for consumers and businesses.

The first visible effects of these measures are likely within a year. With these new initiatives, the Romanian government aims to bring electricity prices closer to the European average and improve the overall energy market.