Romania: As of November cogeneration tax to increase by 40 %

, SEE Energy News

After several changes in recent years, the cogeneration contribution is currently set at 0.0033 euros/kWh, so, as of 1 November 1, it will increase by 40 %.

The tax for highly-efficient cogeneration has been increased, as a result of an order issued by the National Energy Regulatory Authority (ANRE), already published in the Official Gazette.

The contribution for high-efficiency cogeneration is approved in the amount of 0.0046 euros/kWh, excluding VAT. The new value of the cogeneration contribution enters into force on 1 November 2020.

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

The cogeneration tax was cut in April by 16 % after Prime Minister Ludovic Orban argued that it failed to meet its purpose since no new cogeneration plants has been developed recently. Since 2010 when it was introduced, some 2 billion euros were collected from end-users, but only a fraction of that amount was invested in new cogeneration capacities, PM Orban claimed.