Romanian Industry Faces Energy Limbo as Aid Seen to Fall Short
- Companies struggle to secure new power and gas contracts
- Providers say government subsidies too small and too slow
As European Union states strive to agree an unprecedented package of measures to help address the continent’s energy crisis at a ministerial meeting on Friday, Romania is still struggling to fine tune its aid plan.
Photographer: Nathan Laine/BloombergThousands of Romanian companies are struggling to secure long-term power and gas contracts, with suppliers saying they can’t provide required volumes at competitive prices as government subsidies are inadequate and slow to arrive.
The country’s energy aid program -- which may be amended by parliament in the coming weeks -- compensates providers up to 1,300 lei ($253) a megawatt hour, which is less than half the current market price. That leaves suppliers facing losses if they accept new clients and have to buy power from the spot market.