Acasă » Electricity » Concordia: Energy price endangers the industry, measures taken so far are insufficient

Concordia: Energy price endangers the industry, measures taken so far are insufficient

25 October 2022
Electricity
energynomics

The restriction of activity, an increased risk of insolvency and the impossibility to produce are among the major risks faced by many companies in Romania, according to the Concordia Confederation.

“It is important that, despite the urgency, any new solutions are discussed and that there is a real and transparent consultation with the industries. A fourth aid framework is being discussed in just 12 months, and with the approach of winter, the economy can no longer afford incomplete solutions or that put too much pressure only on certain sectors,” say the association’s officials.

Many of the companies in Romania see their proper functioning endangered, and those who encounter the greatest difficulties come from the manufacturing industry (furniture, automotive, beer, juices, etc.), but also from other industries such as rail transport or trade (especially trade with food where the cold chain is essential), as it appears from a recent survey carried out within Concordia. For many companies, the budget has been greatly affected by the increase in energy costs and almost all of them have problems with purchasing energy (due to GEO 119/2022 the energy market is blocked), and these pressures make many consider scenarios that force a reduction in activity, at least temporarily. In the next 3-6 months, many companies will face this risk of having to reduce or stop their activity, the Federation officials added.

To mitigate the effects of the crisis, the members interviewed took measures to help them reduce the impact of very high energy prices. Almost all companies took measures to reduce energy consumption, invested in energy production and energy efficiency, reorganized their internal activity and that with the public, restricted their activity and, unfortunately, some companies even resorted to technical unemployment. Many companies believe that without the intervention of the state they will not be able to overcome this crisis which was generated by factors external to the economy.

For some of the companies, the scenarios of the coming months are full of uncertainties and some of the companies may have to, in the absence of other measures than those adopted so far, to close their facilities and lay off employees. Although investments in photovoltaic panels or other alternative energy production solutions continue, for many employers the measures taken at the company level are proving to be insufficient, given the level of exposure to prices and the difficulties of purchasing energy.

“It is important to point out that beyond the problems of the energy-consuming companies, a series of problems persists at the level of producers, distributors and energy suppliers resulting from uncoordinated interventions and the resulting market dysfunctions or delays in the return of amounts owed by the state.

“We have proposed a series of measures to be taken into account by the decision-makers, in the position document Towards a solution for the energy crisis. We came up with proposals for both consumers and producers and suppliers. We understand the urgency, but we request a minimum public consultation so that possible dysfunctions of a new aid framework are discovered and discussed before it enters into force.”

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