Bucharest Local Authorities Keep Heating Subsidies, Adjust Heating Price

Bucharest local authorities decided the city will continue to grant heating subsidies, and the heating price was set at 100 lei/gigacalorie (EUR1=RON4.2672), VAT excluded, Bucharest mayor Sorin Oprescu told a news conference Sunday.

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Oprescu said the city hall must allot about RON226 million from its budget to pay heating subsidies.

The mayor said he will present in November a report on capital's heating supplier RADET, as well as a reorganization plan targeting the company. Oprescu said RADET might be leased out and highlighted that, after adopting this measure, the city hall will no longer pay heating subsidies.

Bucharest's General Council approved on September 29 raising the price of heating in the city, in light of the VAT hike to 24%, from 19%. The price of thermal energy in Romania's capital was set in October 2007 at 119 lei/gigacalorie, including VAT. After the adoption of Government Ordinance 58/2010, which increased VAT to 24%, the new price will be RON124/gigacalorie.

The councilors rejected a draft on "Bucharest's energy strategy," which provided for subsidies differentiated according to income.

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