Electricity bills could rise by 12-15%, energy suppliers warn

Seniors and their families should prepare for higher electricity bills, as energy purchase prices have risen by approximately 30% since July, both in Romania and across other European countries. The price increase also affects energy to be delivered next year, meaning the impact will be felt gradually in bills.

Laurențiu Urluescu, president of the Association of Electricity Suppliers in Romania (AFEER), explains that a 30% rise in energy prices does not automatically mean a 30% increase in bills. This is because energy accounts for only around 40% of a household customer's bill, with the remaining 60% made up of taxes.

"A 30% increase in the price of energy will not mean a 30% rise in bills, because in the bill structure for a residential end customer, energy accounts for only 40%, with the rest being taxes. This means the effect on bill increases will be between 12% and 15%. But only if the other charges remain unchanged — that is, if they are not also increased," said Laurențiu Urluescu, as quoted by National.ro.

Who will feel the price changes

Consumers on fixed-price contracts should not notice any changes during the term of their contract. However, the situation will change upon renewal or when switching to a different supplier, at which point prices reflecting the new market conditions will apply.

Romania faces a shortage of affordable energy

According to supplier representatives, Romania does not have the highest energy prices in the European Union, but its population has lower purchasing power than in other member states. Furthermore, the country does not have sufficient affordable energy to meet domestic demand, meaning imports from neighbouring countries have helped prevent even steeper price rises — particularly in light of the issues arising at Nuclearelectrica.

"Right now, with the situation at Nuclearelectrica, it has been very fortunate for us to have had a coupled market and to have been able to import from our neighbours, because otherwise prices would have been much higher. [...] We actually have a shortage of cheap energy," explained the AFEER president.

Suppliers owed billions of RON by the state

In addition to rising energy prices, suppliers are also facing difficulties in financing their purchases. Although the supply margin sits between 5% and 10%, companies require ever-larger sums to buy energy, whilst the state delays the payment of compensation.

"We have, however, billions of RON to recover from the state through compensation schemes — around 3–4 billion RON. The last month confirmed and settled by the authorities is January 2024, so we still have outstanding amounts through to 30 June 2025. [...] We are doing everything we can to keep the impact on the end consumer as low as possible, although this is difficult given current market conditions. Nuclearelectrica's exit from the system has affected us all, directly or indirectly," stated Laurențiu Urluescu.

Why energy prices have risen

Supplier representatives say the price increases have not been driven by higher consumption, but rather by a reduction in the amount of energy available on the market. One contributing factor is the smaller number of traders, as Emergency Ordinance 27/2022 imposed excessive taxation on energy trading activity, driving many of them out of the market.

"These traders were bringing energy into the market, and now, unfortunately, it is mainly producers who sell energy — so when a producer is absent, as is the case with Nuclearelectrica, it is already being felt. Being a trader is not straightforward. [...] You need quite a large infrastructure and quite significant financial capacity," Laurențiu Urluescu added.

Suppliers believe that a greater supply of energy on the market would help limit future price increases.