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Romania, VAT on electricity to drop to 5 % as of 1 April

20.Jan 2022.

Romanian Prime Minister Nicolae Ciuca announced that a new support scheme for residential consumers who consume less than 300 kWh of electricity per months will enter into force as of 1 April. The new scheme will also include reduced VAT on electricity to 5 %, green certificate compensation and cogeneration bonus.

PM Ciuca said that the phasing off of the price caps would result in 80 % higher prices unless another package of compensations is set in place. However, he did not specify which of the current price capping elements will remain in force.

He said that the Government is also considering the introduction of a new support scheme for small and medium enterprises, as well as for natural gas residential consumers. For agriculture and food industry, support measures will start as of 1 February and be valid until 1 July.