Romanian Capital Mayoralty Mulls Cutting Subsidies For Hot Water

The general mayor of Romania’s capital Bucharest, Sorin Oprescu, said Monday the city hall is considering eliminating subsidies it pays for hot water, saying half the local budget goes to subsidies to the heating company and public transport.

7 views

Imaginea articolului Romanian Capital Mayoralty Mulls Cutting Subsidies For Hot Water

Romanian Capital Mayoralty Mulls Cutting Subsidies For Hot Water

Oprescu said heating company RADET and public transport company RATB are two black holes that eat up nearly half the city hall's budget in subsidies.

The mayor said Bucharest's local budget for 2010 is of 5.6 billion lei (EUR1=RON4.0939), of which about RON1 billion will be used for investments.

Eliminating hot water subsidies in Bucharest would lead to an average annual extra cost of RON905 per household.

Oprescu explained authorities calculated the average household as a two-room apartment inhabited by 2.5 people. Such an apartment, he said, requires 5 gigacalories of hot water per year and 10 gigacalories of heat. With the subsidy, households pay RON119 per gigacalorie. The price would rise to RON300 per gigacalorie of hot water if the subsidy is cut.

Oprescu said calculations haven't been finalized and the proposition to eliminate hot water subsidies will have to be approved by the city's councilors. He added the city hall doesn't want to cut heating subsidies.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.

 

The free download of the press materials (text, photo and / or video), bearers of intellectual property rights, is approved by www.mediafax.ro only within 250 signs. Spaces and URL / hyperlink are not taken into account when counting signs. The collection of information can only be done in accordance with the terms agreed and mentioned here