Electricity price risks exploding in the next year

Electricity price will grow by 25-40% over a short term, of which half because of subsidizing green energy, in the context of price liberalization and the formation of the regional market, according to the draft Emergency Ordinance on amending and supplementing the Law 220/2008 for the establishment of the promotion system of energy generation from renewable energy sources, document launched for public debate on Tuesday on the website of the Ministry of Economy. Price estimate for the end electricity consumer at the level of 2014 must also take into account the effects of price liberalization by about 30% and the effects of price increase in the context of the creation of the regional market (between 10-30%), the cogeneration tax and the change of energy household consumption habits in favor of electricity, the Substantiation Note mentions. “In this context, it can be estimated a short-term increase by about 25% and up to 40% in electricity prices, of which half is due to subsidies for green energy. To these electricity price increases, we should add in the invoice of the household consumer the indirect price hike of industrial products and service tariffs”, according to the quoted source. The impact of short-term uncontrolled growth in electricity prices by about RON 60-100/MWh because of the contribution for promoting renewable energy raises an affordability issue from both the household consumer and from the industrial consumers, according to the document.