Boc Says Government Will Set Revenue Cap For Heating Subsidies Before September

05.13.2011 By Gavrila Oana

Romania’s Government will decide by the end of the summer on a maximum revenue cap for beneficiaries of heating subsidies, while people with high incomes or who own multiple homes will pay their full bills, Prime Minister Emil Boc said Friday.

The Government committed in the letter of intent to the International Monetary Fund to eliminate heating subsidies by the end of August at the latest and direct such aid only to disadvantaged categories.

The Government currently subsidizes up to 45% of fuel costs of thermal power producers, and household bills vary from one town to the next, depending on the reference price established by the local council and the subsidy granted by each particular mayoralty.

Boc said it is abnormal for everyone to get 45% off their heating bills regardless of whether they make millions or minimum wage.

The Ministries of Finance, Administration and Labor are expected to come up with working plans for the granting of heating subsidies in the following weeks.

Jeffrey Franks, the head of the IMF mission to Romania, told MEDIAFAX the government plans to eliminate the subsidy granted from a central level by the end of the year, with the exception of social cases, who may even receive an increase.