A new drop in energy subsidies for households

In case you did not know, part of the price of electricity consumed for domestic / residential is subsidized by the state. And it is going in the liberalization of the energy market, lowering the subsidy granted. This decrease, according to the program of liberalization, happens periodically every 6 months. Virtually every six months decreases by 10% subsidy up completely gone, since 2018.

Starting 1 January 2016, suventia will represent 40% of active energy price, and the remaining 60% will be CPC (part of the competitive market). Practically 60% of the energy price will be the market price of freedom, and this value is established by ANRE order CPC.

This decrease subsidies may mean increased value for household energy bill. Why do we say “maybe”? Because the total amount of the invoice includes other components, which are also established by ANRE order regularly and if these components recorded changes, then total invoice amount is again influenced.

So, it remains to be seen what changes will bring 2016 regarding the components of the price, so we can determine whether the grant will decrease significantly influence energy prices.

Will decrease electricity distribution rates?

scaderePe ANRE website were published draft orders relating to the amounts of electricity distribution tariffs (some of the largest components of the energy bill), which are intended to come into force since 01.01.2016 – link below.

The main trend is readily apparent in these projects is the drop in the value distribution tariffs. That means a possible decrease in the total value of the invoice to consumers.

For example, the distribution of ENEL Distribution Muntenia S.A., the decrease is approximately 0.029 lei / kWh for consumption places connected to low voltage, while the distribution area of CEZ Distribution S.A. the decrease is approximately 0.027 lei / kWh for low voltage.

It remains to be seen whether these projects will be awarded in this form and whether these declines will come into force.

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