Greece is proposing a six-point plan to combat rising gas prices
Romanian Energy Minister Virgil Popescu said 8m households will benefit from new electricity subsidies, which take effect on April 1st.
The Romanian government has approved the introduction of a cap on electricity and natural gas prices for households and small businesses for another year, after the current support program expired in late March.
At the same time, Serbian authorities have decided to keep the limit for retail prices of gasoline and diesel for another 30 days and temporarily reduce excise taxes on them.
Greece has proposed a six-point plan to combat rising natural gas prices, adding that the current ban on Russian gas imports is unrealistic.
Changes are also forthcoming in Bulgaria on April 1st. The moratorium on electricity and heating prices for households will be lifted, but it is expected that there will be no significant changes, at least in the electricity market. However, heating will increase in price by about 20%.
Support schemes for companies will be extended until June, without changing from the current model, except for raising the ceiling for subsidies to 300 levs (about 153 euros) per MWh.
Romanian Energy Minister Virgil Popescu said the new measures, which take effect on April 1st, will benefit 8 million electricity consumers (households) and all natural gas consumers.
The total amount of aid, including companies, is estimated at 2.9 billion euros in three quarters by the end of 2022.
This will be at least partially offset by the income of electricity producers, who will pay additional sales taxes at prices above a certain threshold.
The price of electricity in Romania will be up to 0.14 euros per kWh for households whose average monthly consumption in 2021 was up to 100 kilowatt-hours.
Households with an average monthly consumption in 2021 between 100 and 300 kWh will pay up to 0.16 euros.
The price of gas for households is limited to 0.063 euros per kWh.
For consumers outside the household category, electricity will cost up to 0.2 euros per kWh, and gas up to 0.075 euros per kWh for annual consumption in 2021 up to 50,000 kWh, as well as for producers of heat intended for other customers.
Greek prime minister wants market intervention
Greek Prime Minister Kyriakos Mitsotakis sent a letter to European Commission President Ursula von der Layen with a six-point plan to combat rising gas and electricity prices.
According to Mitsotakis, it is necessary to limit the price of natural gas on the TTF, with the highest price before the crisis being the reference point. He also wants to set an upper limit on gross profit in the wholesale trade of electricity, which can be set at 5% with monitoring by the regulator.
In the letter, the Greek Prime Minister proposed market intervention in order to protect the proper functioning of the gas market, which is under significant pressure due to the deepening conflict in Ukraine and has strong side effects on gas-based electricity.
Belgrade is extending the measures for another 30 days
Last week, the Serbian government announced that it would extend the restriction of retail prices of gasoline and diesel for another 30 days and that it would temporarily reduce excise duties on motor fuels by 20%. The upper limit of retail fuel prices in Belgrade, introduced in February, was valid until March 10.
The government has not announced how much the ceiling will be or when the reduction of excise duties will take effect. The upper limit for retail prices for Euro diesel and Euro Premium BMB 95 was set on February 12 at 1.53 euros, or 1.45 euros per liter.