Romania has highest electricity prices

by Robert Comanoiu

03-04-06

A report issued by the Ministry of Economy and Commerce (MEC) shows that Romania has the largest tariffs for electricity in Europe, situating in the first three countries in a comparison of prices for industrial consumers with reduced consumption levels.
The comparison of prices covers a league which includes 29 states. A document regarding Romania's energy policy for the 2005-2008 period shows that Romanian industrial consumers paid, in the first semester of 2005, 17 eurocents per kWh if they reported an annual consumption smaller than 50 MWh.

The price is larger than the one existing in 26 European countries like Germany, France or Great Britain and the only two exceptions are Cypress and Ireland, where electricity is more expensive than in Romania. In the next consumption category (under 160 MWh), Romania places second. The tariffs presented do not include the value-added tax but other taxes.
The Ministry of Finance announced that the excise tax on electricity will increase by up to 80 % starting July 1, as provided by the modification project of the Fiscal Code for the harmonization of local legislation to that of the EU. The power for commercial use would be taxed with EUR 0.26 per MW instead of EUR 0.14, while the electricity excise for the population segment will grow from EUR 0.3 per MW to EUR 0.52.

Minister of Economy and Commerce Codrut Seres stated that electricity producer Hidroelectrica will hire a law firm for recovering $ 4 mm penalties from VA Tech Hydro, for its delays in repairing some equipments belonging to Portile de Fier hydro-electric power plant. The reparations contract was negotiated and signed during 1996 and 2000, and in 2005 a series of irregularities were seen in the functioning of the plant's equipment.
Seres said that at that point the Swiss based company refused to give an answer regarding the penalties and that it paid in December 2005, EUR 633,000. Seres said that Gazprom is interested in the natural gas deposit located in Margineni, Neamt County. The minister said that a feasibility study is being prepared for the project and MEC invited the Gazprom representatives to discuss about the future deposit.

In 2003 the Russian companies Gazexport and Stroytransgaz showed interested in participating to the construction of the deposit. The value of the project is estimated at $ 160 mm. The deposit should have followed two construction stages. The first referred to the depositing of a 600 mm cm of gas, necessary to the consumption in all of Moldova's counties.
The depositing capacity should have increased by 2010 to 2 bn cm if Romgaz would have closed contracts with international companies. Gazprom announced in January that it has reduced deliveries to Europe by approximately 20 %, while oil companies have decided to cut back oil production. Gazprom is the largest gas producer in the world, supplying a quarter of Europe's gas consumption.

 

 

Source: www.daily-news.ro