SIMILAR ARTICLES

IMF report – Conclusions show that Romania has become a new and atypical growth model: through imbalances. Which will soon get to be paid

Romania’s macroeconomic imbalances have increased in the past year, and economic and fiscal policies have to change so that the population’s incomes and prospects of… Mai mult

Discharging imbalances on RON exchange rate could start even this year. Analysts’ scenarios and BNR’s uncertainty

Analysts’ scenarios on the evolution of the exchange rate are rather prudent for the coming months, but severe for the beginning of the next year… Mai mult

Stimulating over-indebtedness by stimulating consumption: Overdue loans trigger warning signal – Map of debtors

The policy of stimulating consumption has also distorted the degree of indebtedness in the territorial distribution, and rich counties are competing with the poor ones… Mai mult

Interview with Fogh Rasmussen: “NATO’s role is to keep Russians out, Americans in and Europeans involved”

The text below is a series of fragments from the interview that former NATO Secretary General Anders Fogh Rasmussen gave to CRONICILE Curs de guvernare… Mai mult

BNR minutes: Soft terms that Governor used for assessing serious problems. List of critical situations

The volatility of the new benchmark indicator for loans granted to the population, IRCC – which declined in May, despite the central bank’s control on… Mai mult

Cronicile

Gas and electricity prices: Romania in a European context

de Marin Pana , 27.5.2019

Romania ranked fourth in the second half of last year in the EU in terms of price increase in natural gas provided to the population, according to data released by Eurostat.

With an increase of 16.3%, we ranked on top of price increases right after Ireland (+ 17.3%), Bulgaria (+ 16.5%) and Sweden (+ 16.4%).

Noteworthy, the three states mentioned do not have their own natural gas resources, while four other states have found it appropriate to reduce prices of this energy resource. They are Croatia (-2.5%), Portugal (-1.9%), Hungary (-0.4%) and Germany (-0.2%).

The average of the price evolution recorded at the EU level was + 5.7%.

Despite the natural gas price increase, our country is positioned, along with Hungary, as the EU member country with the lowest gas prices for the population, with 3.5 euro/100kWh. However, after adjusting with the price level in each country and switching to the standard purchasing power parity (PPP), we become the tenth most expensive country in the EU.

*

  • Prices of natural gas for households in some EU member countries in the second semester of 2018
  • Country           average price (100 kWh)         price change   tax share
  • Romania
  • Bulgaria
  • Hungary
  • Poland
  • The Czech Republic
  • France
  • Germany
  • Italy
  • EU average

*

It is also noteworthy that the share of taxes in the final price is the lowest within the region and well below the level in Western countries.

Therefore, the increased price has not really come to the benefit of the public budget and new price increases could be expected in the future as taxation gets closer to the practice in more developed countries.

Electricity, fifth most expensive in EU

Unlike gas, the 3.4% increase in electricity price placed us at the middle of the EU platoon (14th out of 28), but the price reached in the second half of 2018 left four other EU countries behind (Malta, Hungary, Lithuania and Bulgaria). The adjustment to PPP standard sends us in this category to EU top 5 highest prices if we take into account the purchasing power of the population.

*

  • Electricity prices for households in some EU member states in second semester of 2018
  • Country           average price (100 kWh)         price change   tax share
  • Euro                PPP
  • Romania
  • Bulgaria
  • Hungary
  • Poland
  • The Czech Republic
  • France
  • Germany
  • Italy
  • EU average

*

If the nominal price in euro is about 30% higher than in Bulgaria and 18% higher compared to Hungary, as an impact on the population after the adjustment with the price level, we reach at 60% above France and 20% over Italy and very close (at 94% of the level applied there) to Germany.

This time, taxes applied by the state are the highest within the region except for Poland but remain below the EU average (27% of our local price compared to 37% at the EU level). It should also be noted that the price increases in the neighbouring EU countries with which we were interconnected were somehow smaller, although they already had lower prices.

What price increases in electricity and gas meant in S2 2018

Data provided by Eurostat show that more than one-sixth of the general price increase in the second half of 2018 came directly from the increase in electricity and gas bills. It is about 0.74 percentage points at average annual inflation in the second half of 2018 of 4.27%.

*

  • Impact of increases in prices of electricity and gas in second semester of 2018
  • Share of basket          price increase             impact on consumer price index
  • Electricity
  • Natural gas
  • Total

*

Basically, given the relatively high shares that the two positions from the energy field have in the consumer basket (together they even rank first, over meat and meat products or fuels), increases of 3.4% in electricity price and 16.3% in gas price are those that pushed the inflation out of the 2.5% corridor plus/minus 1%.

Without the direct effect, we would have had an average price increase of 3.53% in the second half of 2018 and if we also consider the effect of the propagation in the price of all products and services that depend on the cost of utilities, CPI would certainly have been below 3.5%.

However, while in terms of electricity we were within the general EU note (+3.4% compared to the EU average of 3.5%), the increase for the natural gas was well above the average increase in Europe (+ 16.3% compared to +5.7%).

Mergeți în homepage ›

Publicat la data de 27.5.2019

Lăsați un comentariu


NEWS

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult

Romania loses competition for a seat at UN Security Council. MAE Excuse: Campaign started too late

Romania lost to Estonia in the final vote to get the non-permanent member position within the UN Security Council for the period 2020-2021. On Friday,… Mai mult

Business internationalization / eMAG makes a step to entry five new international markets and targets a business of EUR 2 billion

eMAG hopes to get the opinion of the Hungarian Competition Council over the next two months for the acquisition of Extreme Digital, the market leader… Mai mult

"At a distance from books": 85,000 teachers (one third of educational staff) are graduates of distance learning

Approximately 85,000 teachers are graduates of distance learning (ID) programs, Education Minister Ecaterina Andronescu said at a meeting with school inspectors from Caras-Severin County. The… Mai mult

Mugur Isarescu: We should make a film for Viasat History about treasure in Moscow

A book should be written or a movie should be made and sent to Viasat History about a treasure evacuated to Moscow, as it is… Mai mult

Rhythm of commercial vehicle registration increases 3 times faster in Romania than EU average

Today, the European Automobile Manufacturers Association (ACEA) announced the status of commercial vehicle registrations in EU member states + EFTA in April and cumulated after… Mai mult

4.2%, from 3%: BNR has increased inflation forecast for 2019

The National Bank increased the inflation forecast for 2019 by 1.2 percentage points, from 3% to 4.2%. Also, the forecast for 2020 goes up by… Mai mult

Emergency procedure at European Court of Justice for Romania’s question: Are MCV recommendations mandatory?

The Court of Justice of the European Union (CJEU) has decided that Bihor Court’s request to be discussed under the emergency procedure, which is a… Mai mult

Government decides to increase external borrowing ceiling by EUR 4bn. It has consumed program resources for two years

The Government's agenda for Wednesday also includes the draft decision to increase the foreign loans ceiling for 2019 and 2020 by EUR 4 billion, up… Mai mult

Preparations for Summit in Sibiu - European Commission’s recommendations for EU's strategic agenda

On Tuesday, the European Commission presented a series of policy recommendations on how Europe can shape its future within an increasingly uncertain and multipolar world.… Mai mult

Meeting between Prime Minister Viorica Dancila and Chinese Prime Minister Li Keqiang: talks on a possible involvement of Chinese companies in PPP projects in Romania

On Friday, Prime Minister Viorica Dancila had a meeting with Chinese Prime Minister Li Keqiang, during which she stated her interest in involving Chinese companies… Mai mult

So-called "Belina Law" was adopted. Opposition will refer CCR: it turns Belina Island into a fiscal paradise

The Chamber of Deputies adopted on Tuesday the bill that provides for a derogating tax regime, such as tax exemptions or reductions, for land and… Mai mult

Deveselu shield is undergoing an upgrade process; the US provides alternative defence capabilities with THAAD systems

Aegis Ashore anti-missile system installed at Deveselu 99 Military Base will go in the next period through a previously planned upgrade process, the MApN announced… Mai mult

How 2019 began: Investments, allocations by 78.5% lower than the same period of 2018. 21% decrease in co-financing for attracting European funds

The consolidated general budget recorded a deficit of 0.5% of GDP in the first two months of 2019 namely RON 5.2 billion, a "performance" only… Mai mult

Romania's GDP exceeded Portugal’s in 2018: which has a population two times lower and a GDP/inhabitant twice as high

Romania's economy exceeded, at current prices in euros, Portugal's economy in 2018, a country with a population and a surface two times smaller as Romania.… Mai mult