The Ministry of Energy is considering five measures based on which the price of electricity in Romania will drop by 25%, currently being 1.50 lei per kWh, and the European average is 1.28 lei per kWh, explained, on Tuesday, the Minister of Energy, Bogdan Ivan, in a press conference.
“What we want is to decrease by at least 25%. That is a reasonable target, taking into account a buffer. So, at the moment, the average paid by an EU consumer is somewhere around 1.28 lei per kWh. In Romania, we are at almost 1.50 lei. The target is for the price in Romania to be at least 1% below the European average. That is an explicit desire. That we will manage to reach 3% compared to the EU average, 10% would be ideal. We were cautious when we set these targets,” said Bogdan Ivan, according to Agerpres.
The Ministry of Energy stated that the implementation period is 6 months – one year until the price decrease will be seen in electricity bills.
“I think that a reasonable time horizon could be about six months -a year, until we see the first effects. What I can tell you by analyzing the price comparator this morning, before entering the press conference, after the discussions two months ago, in which we agreed on this pact between the state and the private sector, through which we agreed that it is extremely important to have a price reduction, I think that it also mattered a lot that we already have three offers that are below the capped price of 1.30 lei before July 1st and which are at 1.10 lei, 1.20 lei, 1.30 lei. We already have three offers that are below the capped price. And another extremely important detail for which I want to thank both the private operators this time in the supply segment, as well as my colleagues from the Ministry of Labor and those from STS, is the fact that in the first week after taking office, knowing that on July 1st the price cap scheme will be eliminated at electricity and automatically for many consumers who had the price capped at 0.68 lei per kWh to have a very large price increase, we established that aid scheme through which vulnerable people with incomes under 1,950 lei will receive that voucher worth 50 lei. The IT platform was delivered on time”, said Bogdan Ivan.
He mentioned that the supply operators came up with updates to their own IT systems, namely the barcode on each invoice in order to make this system operational.
“Once we have completed this stage, my colleagues from the Ministry of Labor together with those from the Romanian Post will operationalize the system and will send these cards during September. But what is very important is that those people who previously had bills of 60-70 lei following the capping scheme that was eliminated on July 1, with a decision taken in 2024, to be very clear, will have an increase to approximately 130-140 lei. The 50 lei granted through these vouchers will cover approximately 60-70% of this increase for low-income consumers,” Bogdan Ivan specified.
The Minister of Energy stated that the price of energy began to increase since 2021, but it was not felt in consumers’ bills, being capped by law. Starting with July 1, 2025, after the price cap was eliminated, consumers pay the real price. One of the reasons for this is the decrease in the production capacity in the band (gas and coal) by 56% in the last 10 years). Romania also has old electricity networks. In Romania, electricity circulates through installations older than 55 years.
He stated that the deadline for the closure of coal-fired power plants needs to be renegotiated. The closure of coal-fired power plants planned for 2026 has the effect of reducing the production capacity in the band by 2,565 MW. In this context, negotiations are desired to extend the deadline until January 1, 2030, in order to maintain 2,200 MW.
According to the minister, by 2032 Romania should increase its gas-fired energy production capacities by 230%. It is also envisaged to double nuclear production and increase energy storage capacities 10-fold, respectively exceeding 10,000 MW of solar and wind capacity.
According to the minister, the five measures aim to: operationalize the Market Maker mechanism, namely the selection of an operator to ensure liquidity in the energy market, by stimulating demand and supply, facilitating long-term transactions and thus determining a constant decrease in price; increase transparency and reduce risks in the energy market, by requesting firm guarantees in all energy transactions; introduce dynamic and differentiated tariffs by consumption intervals, which would reward responsible consumers, who use energy in the intervals in which it is cheapest, with low prices; decrease the energy purchase prices for the distribution operators’ own consumption by creating a single purchase mechanism – this acquisition cost of distributors represents almost 25% of the total cost of energy for consumers, so the implementation of the mechanism will bring lower distribution tariffs for all consumers; integrate all energy efficiency programs under a single, efficient coordination, to be ensured by the Ministry of Energy.
In parallel, negotiations will continue at the European level to extend the operating term of coal-fired power plants until 2030, a step that will moderate price increases and provide time for the development of new production projects.