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Romania extends cap on electricity and gas prices to end-2022

The Romanian Government has decided to extend the existing cap on electricity and gas prices for households and small enterprises, which will expire in late March 2022, for another year. Consequently, residential prices will remain stable at RON 68c/kWh (€13.7c/kWh, for up to 100 kWh/month), at RON 80c/kWh (€16.1c/kWh, for 100-300 kWh/month) and RON 1/kWh (€20c/kWh) for other households and large non-residential users with social functions (such as hospitals or schools). Small enterprises will benefit from a special scheme reducing their costs by around 20%. Finally, households consuming up to 1,200 m3 of gas will pay RON 0.31/kWh (€6.3c/kWh) of gas. The measure, including the support schemes for large companies, is estimated to cost RON14.5bn (€2.9bn) until the end of 2022; the impact should be partly offset by proceeds from the supplementary taxes on power generation companies (excluding thermal power plants) that sell their power generation at a price above €90/MWh.