"In European energy price statistics, Romania often appears as the 'modest student' nominally (in euros) - below the EU average and below western states. But when you put the same bill through the purchasing power (PPP) filter, Romania flips and becomes the country with maximum costs and prices," says AEI President Dumitru Chisăliță. Romania has final electricity prices nominally 21% below the EU average, but in reality is 15% above in PPP terms. The difference comes primarily from Romanians' low purchasing power, which 'weighs down' the same euro amount.

Although the components forming the nominal electricity price show Romania is 'below EU level' in almost all components (distribution, margin, taxes), relative to purchasing power the cost amounts and final electricity price jump 'above' average.

Compared to Germany and the Netherlands (dense networks, high load), Romania appears much below nominal costs and prices, but relative to purchasing power, has commodity prices up to 84% higher. Compared to Poland, Romania has approximately the same nominal commodity price and has electricity distribution tariffs below level.

The commodity price of electricity without taxes and tariffs relative to purchasing power places Romania second in the EU ranking, surpassed only by Bulgaria. Romania's production structure of hydro and nuclear offers competitive costs, but during periods of low water levels or nuclear maintenance, the marginal price is dictated by more expensive technologies (coal and gas), and regional interconnections rapidly transmit external shocks.

The analysis reveals that average electricity distribution tariffs in Romania, relative to purchasing power, place the country first in the EU ranking.