Energy prices for electricity and natural gas have been capped in Romania since November 2021, a measure aimed at protecting consumers from surging tariffs and cushioning energy market shocks.
"Although consumers will remain exposed to the risk of a potential price increase, especially due to the active energy component, maintaining the scheme is no longer sustainable," states the EPG, highlighting that it cannot substitute structural measures needed to boost incomes, reduce utility expenditure in household budgets, and stimulate energy sector investments.
The study warns that market distortions are delaying energy efficiency and demand-side response projects, potentially affecting the energy system in the medium and long term.
EPG estimates that without the capping scheme, household electricity bills could exceed RON 1.15 per kWh, significantly higher than current regulated prices. Natural gas prices for households could approach RON 331 per MWh, slightly above the current cap. The return to a competitive market will inevitably lead to price increases, in some cases even doubling current bills.
Key recommendations include a clear timeline for phasing out the cap and developing well-targeted support schemes for vulnerable consumers based on robust data. Consumer empowerment is also considered essential for reducing the financial burden of energy costs.
