The Romanian government has extended and expanded the scope of a set of laws to help households and firms cope with the skyrocketing rise in energy prices. It also included a price cap on electricity to the measures.
Price ceilings as protection against salting
Price caps are among the main tools by which the Romanian government wants to protect its citizens and firms from the effects of energy boosting. Indeed, the price cap on energy will apply until March next year. Until the same time, the government wants to extend the validity of the compensation scheme. Both measures work out to about $3.3 billion.
The Romanian cabinet approved completely new measures as well. They also include a plan to reduce energy use by at least 15 percent. But compensation will go hand in hand to firms that are being capped by the government. “The measures will demotivate speculators away from speculatory behavior in both the electricity and natural gas markets,” its chairman, Nicolae Ciuca, told reporters after the government talks.
Fearing over corporate bust
The government is also worried about layoffs and corporate bust, so it has also dealt with trade unionists and employers. “We are in the midst of a third attempt to find a solution to a problem that affects literally everyone,” said Radu Burnette, director of the employee stock company.
