Bosnia and Herzegovina sees...

According to the Agency for Statistics of Bosnia and Herzegovina (BiH), gross electricity...

Albania: Electricity production falls...

According to data from the Albanian Institute of Statistics (INSTAT), electricity production in...

Romania: Energy Vault partners...

Swiss energy storage company Energy Vault has signed an agreement to provide up...

Romania: PPC Renewables begins...

PPC Renewables Romania has commenced turbine installation at the Deleni wind project in...
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

Slovenia: Wind Energy Association calls for balanced policy consultation

The Slovenian Wind Energy Association (GIZ) has expressed concern that recent political debates on wind energy are being shaped by what it views as an unbalanced event. The association says conclusions from a June consultation in the National Council—attended...

Bosnia and Herzegovina sees mixed energy output trends in June 2025

According to the Agency for Statistics of Bosnia and Herzegovina (BiH), gross electricity production in June 2025 totaled 1,000 GWh, compared to 1,028 GWh in the same month last year. Hydropower plants accounted for 26.4 percent of total gross...

Albania: Electricity production falls in Q2 2025, imports rise

According to data from the Albanian Institute of Statistics (INSTAT), electricity production in the second quarter of 2025 reached 1,757 GWh, representing a 4.6 percent decrease compared to the same period last year, when it stood at 1,841 GWh. Electricity...
Supported byVirtu Energy
error: Content is protected !!