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The National Energy Regulatory Authority (ANRE) has decided to increase the tax on cogeneration, which is paid by all electricity consumers, domestic or industrial. The measure came into effect on Sunday, November 1 and will have the effect of raising the price of electricity bills paid by the population and companies. The tax on cogeneration was increased from about 3.5 euros / MWh to about 5 euros / MWh, the increase being over 40%.
“The contribution for high efficiency cogeneration is approved for the value of 0.02263 lei / kWh, without VAT”, is shown in the ANRE order with the n. 189/2020, published in the Official Gazette on October 22.
The increase occurs in the context in which, in summer, Prime Minister Ludovic Orban announced that this tax will be reduced, precisely because it entails an increase in the cost of these energy bills.
We are working on a legislative amendment that aims to reduce the so-called cogeneration tax. Included in the price of electricity is a tax that was established with the aim of financing investments in the modernization of power and thermal power plants in cogeneration, a tax that has artificially increased the price of electricity for both industrial consumers and consumers. homes and that did not have the utility for which it was designed due to the almost 2 billion euros that were raised during this period, very little money was allocated to investments in modern and efficient cogeneration capacities, “said Ludovic Orban, at the beginning of June.
Interestingly, the tax was actually reduced, for a short time, at that time by 16%.
What is the cogeneration tax
The contribution or cogeneration fee is an amount that each electricity consumer pays monthly, to support the production of electricity and heat (cogeneration) in high efficiency conditions. Currently, some 40 thermal and power plants benefit from the funds raised through this cogeneration tax.
Across the country, the cogeneration tax collected amounts to more than 350 million euros per year, about 100 million euros more than when it was 3.5 euros (245 million euros). The calculation is made at an average national consumption of about 8,000 MWh, which includes both domestic and industrial consumption.
