R. Dudău: If well enforced, utility payment deferral can be really helpful to energy suppliers

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The think-tank Energy Policy Group has launched in public debate a first analysis of the draft law on utility payment deferral for three months, adopted by Parliament. The initiative is based on a fair idea of social protection, considers the EPG experts, but it risks to be badly implemented; the most important thing is that the segments of beneficiaries are clearly delimited.

We spoke with Radu Dudău, co-founder and director of the Energy Policy Group – EPG about utility payment deferral at EnergynomicsTalks.

Promoted based on social protection considerations, the law fails to support all those in need, stressed Radu Dudău. At the same time, the law includes among the beneficiaries large energy-intensive companies, too, which should not happen: “We do not suggest that large energy consumers should not get support packages in these extremely difficult conditions. It is just that for them there are more suitable means of state aid tailored specifically for them”, explained Radu Dudău.

The director of EPG also addressed to the main fear expressed by some of the energy suppliers. In the short term, there is a risk that some supply companies will become short of cash if a large number of customers decided not to pay the bills. “We believe that such a normative act supports the supply companies because it would be harder for them to cope with a wave of unpaid bills, compared to the situation when they had such an instrument to facilitate their credits based on an notice from ANRE”, said Radu Dudău.

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Adopted last Friday, the law in now at the Presidency for promulgation, but it has already been challenged in the Constitutional Court, which means that the measures in question will not be implemented in a very short time.

The Energy Policy Group (EPG) is a Bucharest-based non-profit, independent think-tank specializing in energy and climate policy, market analytics and energy strategy, grounded in February 2014. EPG’s regional focus is Eastern Europe and the Black Sea Basin. Its analyses, though, are informed by wider trends and processes at global and EU levels.

EnergynomicsTalks is a new editorial product launched by the Energynomics communication platform aiming at encouraging a constant professional dialogue in the Romanian energy community during the state of emergency and amid the restrictions imposed by social distancing approach.

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