The price of natural gas and electricity has increased significantly in recent months, generated by many internal and external elements related to Romania. The impact of this fact on the final consumer and Romanian companies has been powerful. Moreover, as many of them face difficulties due to restrictions during the alert period caused by COVID-19, it may become difficult for several economic operators to pay for utilities in the winter months. This fact, overlapping with other impediments, has a multiplier effect on the economy, with serious economic, social and financial repercussions.

Equally, the impact is experienced on many levels, such as macroeconomic, business, in general, and on small and medium-sized companies in particular, social, financial, and administrative. According to the NBR report published in November 2021, the energy component (fuels, natural gas, electricity) increased the rate of the annual inflation contribution for the third quarter of 2021, which rose to 1.5 points, half of the increase being explained by the increase of natural gas price. Also, a price increase characterized the electricity component (4.2%), and the evolution of the wholesale price was more affected by the price escalation of CO2 emission certificates. In the third quarter of 2021, the rise in prices was generated by higher fuel and firewood prices due to declining domestic supply in recent years (amid a gradual tightening of legislation in the field).

Therefore, there is a difficult context in which energy suppliers have to adapt to the market’s dynamics at the European and global levels. The Romanian Government has to take the necessary steps to support vulnerable consumers, whether domestic or non-domestic, and the the latter have to find solutions to control their energy consumption and pay their current bills.

On the other hand, it is equally important to note that every energy consumer has the freedom to choose an energy supplier who can offer him the contractual terms he needs, whether they refer to an advantageous energy price, an extended payment period of 30 days, an unlimited contract term or other facilities. The change of the energy provider is free and can last between 40 and 50 days from the notification sent to the current provider. Every customer should be aware that, regardless of the chosen energy supplier, distribution operators must ensure the electricity or natural gas supply continuity, and any such failure must be reported to the distributor or even the supplier as soon as possible.

In conclusion, price capping, energy-saving strategies, and temporary solutions to control the impact of electricity prices on Romanians. The decrease in inflation that the NBR expects from the third quarter of 2022 and the reduction of political conflicts at the international level can be medium and long-term solutions to generate much-needed economic stability and predictability.

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