Which city in Romania has doubled the price of a gigacalorie? This change came to the forefront for Romanians right from the first day of 2022. The New Year did not come with any good news for some citizens.
Bad news for some Romanians: the city in our country that doubled the price of a gigacalorie
The New Year did not start at all with too good news for some Romanians who took note of the increase in the price of the gigacalorie. Specifically, 2022 came from day one with a huge cost of heat for those in Timisoara. Even from January 1, the price of a gigacalorie increases from 207 lei to 416 lei per Mega Watt.
The local authorities decided this in a meeting. Thus, an amendment will double the amount of the subsidy offered from the local budget and provides that the payment of subsidies will not exceed the annual ceiling of 15 million euros (equivalent in lei). It can be granted to Colterm in order to comply with the State aid rules.
“The last increase in this price was 12 years ago, in 2009. The real district heating rate is 851 lei / MWh, of which the local budget supports more than half, ie 435 lei / MWh, and the remaining 416 lei pays the population.
Colterm continued to make a loss by selling heat below the production price. […] You can’t produce for 10 lei and sell for 1 lei “, explained the mayor Dominic Fritz.
“Let’s think about a long-term plan in parallel”
Florin Cîțu made a series of statements about subsidizing the gigacalorie. The official urged members of the government and mayors to come up with a medium- and long-term plan to help allocate gigacalories to the future. The latter mentioned that he wants a solution to be found in order to be able to use resources for investments or other necessary normative acts.
“We make this allocation for the subsidy of the gigacalorie, not for arrears, fines. That’s not what we’re going to do. I want to talk about principles, how we allocate these amounts. I want them to be targeted, to go clear exactly where the problem is. We will now resolve this one-off situation.
We will be able to subsidize the gigacalorie, part of the money from the budget. But this is not a long-term situation. I would like to take advantage of this situation and discuss a medium-term and perhaps longer-term plan. Let’s think in parallel about a long-term plan. How can we use resources for investments or what normative acts are needed “, said Florin Cîţu during a meeting.