Electricity bills will decrease by 8% on average in January after the VAT rate went down and the energy market regulator reduced the distribution tariffs, said Energy Minister Victor Grigorescu.

The VAT rate was cut from 24% to 20% on January 1 while the Energy Regulatory Authority (ANRE) reduced the electricity distribution tariffs by 12% on average from January 1.

Nevertheless, the share of green certificates in the electricity bill rose from RON 35 per MWh to RON 43 per MWh, so the final price ultimately dropped by 3.5%.

The green certificates, which support the renewable energy sector, have a higher share of the final consumers’ electricity bills after several energy-intensive companies have been exempted from paying the green certificates. The rest of the consumers thus need to pay them. The exempted companies include large industrial consumers such as Alro Slatina, Arcelor Mittal Galati, Lafarge, Carpat Cement, Saint-Gobain, and Azomures.

editor@romania-insider.com