Sursa foto: Inquam Photos / Alberto Grosescu
Because they cannot increase the subsidy to suppliers, 27 municipalities are at risk of running out of heat and hot water in the cold season. Residents, schools, hospitals and businesses will be affected, and to avoid this situation, solutions are urgently needed from the government, writes News.ro.
“In recent months, the price of gas has risen at an accelerated rate, reaching four times what it was last winter. According to European legislation, local authorities are not allowed to increase the subsidy. Given that the tariff cannot increase beyond the limit of citizens’ affordability, the subsidy cannot be increased, we are in a situation where the burden of the cost difference compared to last winter has to be borne by the heat operator or local budgets. The additional costs are so high that without government intervention, all these operators – we are 27 municipalities – risk going bankrupt,” said Lucian Viziteu, mayor of Bacau.
He says the effect on the population will be “major and extremely serious”. Solutions exist, but they are not easy to find, stresses Lucian Viziteu.
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“We have two producers in Romania, OMV Petrom and Romgaz. The cost of production, as far as I know, is around 75 lei per MWh. They could make bilateral contracts with the thermal agent operator, at a price below the market price, and still make a profit. Another option would be for the government to intervene with a series of measures, either to subsidies operators directly, which could still conflict with EU free competition law, or to take measures similar to a price cap, but here too it conflicts with European law, or additional compensation,” Viziteu said.
The mayor also points to another impediment. It is very difficult for heat suppliers to conclude contracts to procure the gas needed to produce hot water and heat.
Viziteu says that there have been discussions on this issue in the Association of Municipalities, led by Emil Boc. Among the 27 cities that could be affected are the capital, as well as Arad, Brasov, Buzau, Cluj-Napoca, Constanta, Galati, Iasi, Miercurea Ciuc, Oradea, Pitesti, Ploiesti, Ramnicu Valcea, Sibiu, Suceava, Timisoara, Tulcea and Vaslui.
A letter from the Association has been sent to the Ministries of Energy, Development and Finance.
“The measures should come urgently, in the next 1-2 weeks,” the mayor added.
Gas demand has increased in 22 of the EU countries in 2021 and gas prices are at a high levels.
Edited for English