Acasă » Electricity » AFEER: Capping the price of energy is not a solution – taxes should be reduced or canceled

AFEER: Capping the price of energy is not a solution – taxes should be reduced or canceled

7 October 2021

Capping the energy price only moves the problem from one place to another and the solution proposed by the suppliers refers to the reduction or cancellation of the excise and value added tax (VAT), said on Thursday, Laurenţiu Urluescu, president of the Suppliers Association of Energy in Romania (AFEER), in a meeting with the press.

He was asked if, in his opinion, capping consumer prices is a solution to counteract high prices.

“Any interference in the market is not a solution; capping only moves the problem from one place to another. It also depends a lot on how this” capping “is defined. Some countries say” capping “and partially offsetting the bill. Secondly, it depends a lot on how the “capping” is defined: it can be from partial compensation to limiting the wholesale price, which means encouraging exports,” Urluescu explained, according to Agerpres.

Asked what the optimal solution would be, he replied: “From the outset, AFEER proposed a reduction or cancellation of VAT and excise duty; this would have made direct and simple compensation simple and quick without complicating the settlement scheme. in addition, the change in taxation for all consumers would have avoided the indirect effect on the consumer basket.”

Also, Cristian Culea, member of the board of directors of the Association, showed that the three major electricity producers – Hidroelectrica, Nuclearelectrica and Oltenia Energy Complex – do not come with energy in the market to respond to the purchase offers of suppliers, which leads also to price increases.

“Suppliers want to buy energy at market price, but the volumes put up for sale by producers are smaller and shorter than last year. It is amazing that at this price producers do not produce at full capacity, it is a question mark. it is also surprising that at this price we still import energy,” Culea claimed.

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