Romania, ACUE criticized the recent amendments to the Government’s cap and subsidy scheme

, SEE Energy News

The Federation of Associations of Energy Utility Companies (ACUE) criticized the recent amendments to the Government’s cap and subsidy scheme, claiming that setting a maximum average settlement price for the electricity suppliers is an unconstitutional provision, contrary to European and national legislation.

ACUE called for a review of the new scheme in order to avoid market disruptions and ensure stable supply of electricity to consumers.

ACUE’s objections refer to the maximum price set by the Government under the amended cap and subsidy scheme, assumed as the maximum average price paid by the electricity distribution company and used by the market regulator ANRE in order to calculate the subsidies paid to the electricity distribution firms for keeping the end- user prices at the regulated levels. The maximum value of the weighted average price of electricity at which ANRE calculates the amounts to be settled from the state budget for electricity suppliers is 260 euros/MWh.

ACUE claims that the Government knows that the purchasing price of electricity is higher these days and that, by the provisions of the ordinance, it generates losses to the electricity distribution companies. Furthermore, the distribution fees are frozen at the level that do not reflect the actual costs that the operators of distribution networks incur.