The minister said the Government will eliminate the 350 million lei (about EUR82.45 million) heating aid and will allot RON120 million only to vulnerable consumers.
Lazaroiu said only disadvantaged categories will receive heating aid in 2011-2012. He said 330,000 people connected to the centralized heating distribution system will be granted subsidies this year, compared to 200,000 in 2010.
The minister said the income cap considered in granting heating subsidies will be increased from RON615 per family member in 2010-2011 to RON786 per family member.
Last year, people whose monthly income did not exceed RON615 received subsidies amounting to 10% of their heating bill, while this year, families whose monthly income is up to RON786 per family member will receive a 5% subsidy, said Lazaroiu.
Romania has committed to eliminate heating subsidies by the end of August at the latest and direct such aid only to disadvantaged categories.
The move may lead to a 60% increase in household heating bills by the end of the year, depending on local authorities’ capacity to cover the difference. The heating subsidy has been so far granted through a combination of funding from the state budget and local budgets.
The minister suggested local authorities should also eliminate heating subsidies and direct aid only to vulnerable consumers.
(EUR1=RON4.2449)