The so-called co-generation fee, paid by all Romanian electricity consumers and in principle aimed at financing the development of green, efficient heat and electricity combined (co-generation) power plants, will increase by 40%.

The higher fee will come into force on November 1, according to the order issued by the energy regulator ANRE, Economica.net reported.

Currently, the fees collected from end-users are distributed as subsidies to around 40 power plants in Romania that use this technology.

The co-generation fee was cut in April by 16% after prime minister Ludovic Orban argued that it failed to meet its purpose since no new co-generation plant has been developed recently. Since 2010 when it was introduced, some EUR 2 billion was collected from end-users, but only a small amount was invested in new co-generation capacities, PM Orban said.

This fee currently accounts for just over a quarter of the green energy fee.

The co-generation fee and the green certificates account for one-fifth of the regulated electricity price (excluding all the fees and taxes). Thus, the 40% increase will not significantly impact the residential end-user price but might be felt by electricity-intensive industrial users.

iulian@romania-insider.com

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