Transelectrica launches major projects...

Romanian electricity transmission system operator Transelectrica has launched two major infrastructure projects to...

Romania launches third CfD...

The Romanian Ministry of Energy, in cooperation with Transelectrica, the operator of the...

Montenegro: EPA clears two...

Montenegro’s Environmental Protection Agency (EPA) has decided that Unipan Green, a local company,...

Slovenia: Šoštanj thermal power...

At the end of September, the Šoštanj thermal power plant began an extensive...
Supported byClarion Energy
HomeSEE Energy NewsRomania: End of...

Romania: End of price caps and VAT hike drive sharp rise in electricity bills

Electricity bills for July and part of August 2025 in Romania are significantly higher than in previous months, driven by multiple factors. A heatwave increased consumption as air conditioners and cooling devices were used extensively. At the same time, the government ended the price cap and compensation scheme that had been in place from November 2021 to June 2025. Additionally, the VAT rate on electricity rose from 19 to 21 percent starting 1 August.

For nearly four years, Romanian households paid capped rates, with the state covering the difference between market and consumer prices. During 2022, 2023, and part of 2024, real electricity supply prices reached 0.4–0.6 euros/kWh, and in some cases 0.8–1 euro/kWh under the supplier of last resort regime. Consumers, however, paid much less—0.14, 0.16 lei, or up to 0.25 euros/kWh—depending on consumption. With subsidies removed, customers now pay full contractual prices.

Although current contract rates are well below the extreme highs of the 2022–2023 energy crisis, bills have still risen due to the end of subsidies and the VAT increase. The suppliers’ association AFEER warns that the impact is widespread.

The government has introduced a new safety net for vulnerable households through GEO 35/2025, granting a monthly allowance of 10 euros to those in energy poverty. Around 1.3 million households qualify for this aid, but many others facing higher costs do not meet the criteria. Low-usage consumers who previously paid about 13.6 euros for 100 kWh are now seeing bills more than double. A household consuming 150 kWh in July, combined with the VAT hike, could face a bill of around 40 euros—nearly triple the earlier amount.

AFEER estimates that about 7 million households consume less than 200 kWh per month, meaning the burden is felt across much of the population. The combination of extreme weather, increased consumption, the end of subsidies, and higher taxes has left millions of Romanians more exposed to market electricity prices.

Supported byOwner's Engineer banner

Recent News

Supported byspot_img
Supported byspot_img

Latest News

Supported byspot_img
Supported bySEE Energy News

Related News

Transelectrica launches major projects to strengthen Romania–Moldova power interconnection

Romanian electricity transmission system operator Transelectrica has launched two major infrastructure projects to strengthen the national grid and enhance interconnection with neighboring Moldova. The initiatives include the 400 kV Gadalin-Suceava overhead transmission line and the 400 kV Suceava-Balti interconnection...

Romania launches third CfD tender for 290 MW of onshore wind projects

The Romanian Ministry of Energy, in cooperation with Transelectrica, the operator of the Contracts for Difference (CfD) mechanism, has announced the third competitive tender for renewable energy producers under the CfD support scheme. The bidding process will take place...

Montenegro: EPA clears two Unipan Green solar projects without full environmental assessment

Montenegro’s Environmental Protection Agency (EPA) has decided that Unipan Green, a local company, will not need to conduct an environmental impact assessment for two planned solar power projects located south of Podgorica. The first project will have an installed capacity...
Supported byVirtu Energy
error: Content is protected !!