State-owned fossil fuel energy producers in Romania aim to recover 160 million euros from the government under a price-capping policy.
Romania's Ministry of Energy is being asked to reimburse the full cost of CO2 certificates purchased by power producers for electricity produced under the price-capping system. The total claimed reimbursement is estimated to be around RON 830 million (approximately EUR 160 million), with both power producers and suppliers seeking compensation.
Under Romania's and certain European countries' price-capping schemes, power producers incur costs purchasing CO2 emission certificates, a part of the EU Emissions Trading System. To shield consumers from high energy prices while ensuring power producers are financially compensated for CO2 costs, a mechanism is set that caps electricity prices and allows for reimbursement of CO2 certificate costs.
The reimbursement process involves monthly compensation requests from suppliers to the Ministry of Economy, which settles these claims periodically. Power producers calculate their CO2 certificate costs for electricity subject to the price cap, then send a formal compensation claim to the Ministry. The Ministry reviews and pays the compensation monthly for the covered period.
The exact procedural steps and financial calculation methods may involve regulatory guidelines by Romanian authorities. However, the overall approach fits within the context of national fiscal responses to the energy crisis that include such compensations as part of price-capping regimes for electricity.
The price-capping system subtracts a 100% surcharge owed to the state for electricity sold above the set price (RON 450 or RON 400 per MWh, depending on the period of time). Notably, the power producers' claims do not include any electricity sold above the maximum set price, as none was sold above this price.
Sources familiar with the matter consulted by Economica.net and iulian@our website provided the information for this article. It is unclear if the reimbursement has been granted or is under consideration. At the end of last year, the total debt estimated for the power suppliers, also subject to the price-capping system, was approximately EUR 1 billion.
(Photo source: OMV website)
[1] Economica.net, "Romania's power producers seek to recover CO2 certificate costs under price-capping mechanism," accessed [insert date].
The cost of CO2 certificates, a part of the EU Emissions Trading System, is incurred by power producers under Romania's price-capping scheme for electricity. As such, these producers are seeking reimbursement from the Ministry of Energy, with the total claimed amount estimated to be around RON 830 million (approximately EUR 160 million). Furthermore, the finance sector could be impacted by the reimbursement process, as it involves settlements between suppliers and the Ministry of Economy, which is a part of Romania's industry sector.
