BUCHAREST (Reuters) – Romania’s government on Thursday scrapped a program to protect families and small businesses from emerging energy expenditures until the end of August 2023, and will apply an additional tax to the entire energy source chain.
Romania has limited the fuel and electricity costs of households, small businesses, hospitals, schools and public establishments to certain levels of monthly consumption and compensates suppliers for the difference since November last year.
The first cap-and-pay formula worked until March. First, the timing was expected to last until the end of March 2023 and cost about 16 billion lei ($3. 3 billion).
The government approved new measures at an assembly on Thursday. In addition to the five-month extension of the term for the regimen, the adjustments come with a 15% relief in the monthly admission grades that will benefit from the value cap and application. of a contribution tax to an energy transition fund for energy and fuel manufacturers and traders.
The government also set a cap on the weighted average value of electric power it will use to compensate suppliers, and brought a fine of 5% of turnover that can be applied to investors or suppliers for successive sales to artificially construct energy values. .
“The measures will discourage speculative behavior in the markets for electric power and herbal fuels,” Prime Minister Nicolae Ciuca said ahead of the meeting.
The modified scheme, which was approved through a decree without public consultation, is expected to charge a total of 12 billion lei at a rate of 1 billion lei per month, Finance Minister Adrian Caciu said, which will be offset through the new tax.
“We are in the third attempt to solve a challenge that considers everyone,” said Radu Burnete, director of the Concordia employers’ association, one of the largest in the country.
“An emergency decree that we have become aware of some time before its approval does not respect the law or the public interest. “
The energy program is perceived as a major threat to Romania’s already giant budget deficit, and the government’s ability to reduce the deficit is one of the main drivers of its credit rating.
($1 = 4. 8467 leus)
By Scott DiSavino NEW YORK (Reuters) – Oil futures fell more than 3% to a one-week low on Thursday on a tentative deal that would prevent a U. S. rail strike. In the US, expectations of a weakening. . .
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