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.
