Romania: Energy-intensive industrial consumers still subsidized by the Government, SEE Energy News
According to Minister of Economy and Energy Virgil Popescu, this move aims to bring competitiveness in industry and avoid relocation of energy-intensive consumers that employ some 100,000 people.
Romanian Government has extended subsidies to selected energy-intensive industrial consumers, aimed to cover CO2 emission allowances costs which are included in the final price of electricity.
Some 170 Romanian energy-intensive companies will get state aid worth around 291 million euros, related to their electricity consumption in 2019-2020. The amounts provided as state aid will be financed from the sale of the surplus of CO2 emission certificates by the Romanian state, amounting to about 1 billion euros.
Earlier in May, the European Commission (EC) has approved Romania’s plans to partially compensate large energy-consuming companies for higher electricity prices resulting from the costs of CO2 emissions. The aid will be directed to industrial companies that purchase electricity from coal-fired power plants and therefore must pay for the CO2 certificates. For example, Steel pipe producer TMK Artrom Slatina will receive compensations worth about 7.4 % of its electricity bill, while TMK Resita steel mill will have 6 % of its electricity bill covered. The electricity bill accounts for 40 % of the production costs incurred by aluminium producers and 18 % of the costs incurred by steel producers. Over one third of the electricity bill represents the indirect cost of CO2 certificates passed to industrial end-users. The list of state aid recipients includes steel, aluminum or chemical manufacturers such as Liberty (Sidex) Galati, Tenaris Silcotub Zalau, TMK Artrom, Doosan IMGB, Ciech Soda, as well as clothing or paper and cardboard manufacturers such as Pehart Tec Dej, Ambro Suceava, Manifatture Italiane Craiova and Shireen Fashion Timisoara.