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Chirițoiu: We must not return to subsidizing all consumers

25 January 2022
Consumers
energynomics

The support measures should be aimed only at vulnerable consumers and we should not return to that “stupid system when everyone was supported and we pretended that energy is cheap”, said on Tuesday, Bogdan Chiritoiu, the president of the Competition Council.

“It is clear that we are making an exceptional effort these months, because the situation is exceptional, but, as the Minister of Energy said, we expect a drop in gas prices in April and this will, to some extent, lead to a decrease. But the problem remains, high energy prices are not strictly transient and in a few months we will return to the situation of 10 years ago,” Chiriţoiu said, according to Agerpres.

In his view, mechanisms need to be put in place to help manage the situation of vulnerable consumers.

“But without going back to that stupid system we had before, when we were trying to subsidize everyone, who needed it, and who didn’t need it, and pretend that energy is cheap, when actually it’s not cheap at all,” the Competition official said.

If all consumers receive aid, they will no longer be encouraged to use it effectively and take measures to reduce consumption, he added.

“We are collaborating with the Government for this text (the new GEO for offsetting invoices – no.) to ensure that it is not excessive, so as we manage the aid well and respect the European legislation. ANRE supervises the way invoicing is done, together with ANPC, and we pay attention to competition in the market and not to block companies from migrating consumers from a worse offer to a better one,” said Chiriţoiu.

He pointed out that the institution he represents also analyzed the way in which companies comply with the legislation in the field of grid connections, and the conclusions were that, although there is demand, the number of connections has not increased.

“I am convinced that some companies did not do their job well, I saw this in both invoicing and connection. But, if we talk about prices, prices are high in Romania not because of an incorrect thing that an institution of the Romanian state does or a company. Prices are rising all over Europe and it is impossible not to rise in Romania as well, because Russia is not delivering gas at the level of previous years, this is the reality and inevitably prices are rising for gas and electricity. I am convinced that many companies have not done their job well, but let’s not look for a scapegoat in our yard now, when the reality is beyond our borders and forces. We in Romania cannot force Russia to deliver gas and change the way European markets work. So we have to have a dose of realism,” added the president of the Competition authority.

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