Electricity bills for consumption in July and, partially, in August reflect an increase compared to previous periods determined by three main factors: the increase in consumption recorded during the heatwave, generated by the intensive use of air conditioners and other electrical equipment intended to ensure thermal comfort in the context of high temperatures, corroborated with the cessation of electricity price subsidies from July 1, 2025, with the end of the support scheme implemented by the authorities between November 2021 and June 2025 and with the increase in the VAT rate from 19% to 21%, applicable starting August 1, 2025 to all invoices issued after this date, claims the suppliers’ association, AFEER.

“It is true that bills are higher than usual in recent years. The cessation of state subsidies, increased consumption caused by the heat wave and the VAT increase are the direct causes of this development. It is important for the public to understand the full context of these changes,” said Laurențiu Urluescu, president of AFEER.

Starting with July 1, 2025, the authorities decided to end the subsidization of electricity prices, a measure that was applied in recent years through the capping and compensation scheme financed from the state budget. Thus, between November 2021 and June 2025, household consumers benefited from support from the state, which kept bills at a low level, despite fluctuations in international energy markets. With the elimination of this support scheme, consumers pay, starting in July, the full price stipulated in the commercial contracts concluded with energy suppliers.

“Let’s not forget that, after the coronavirus pandemic and the associated health crisis, Romania – like the whole of Europe – faced a succession of crises: economic, then energy. Initially, we witnessed an accelerated increase in the prices of carbon emission certificates, which reached almost 100 euros per unit, directly impacting the final cost of electricity. Subsequently, the outbreak of the military conflict in Ukraine generated a new wave of price increases on the energy market.

During the period 2022 – 2023, and partially even in 2024, the real prices for electricity supply reached 2–3 lei/kWh, and under the Supplier of Last Resort (FUI) regime even 4–5 lei/kWh. Through the capping measures adopted by the authorities, household consumers paid subsidized prices, of 0.68 lei, 0.80 lei or a maximum of 1.30 lei/kWh, depending on the consumption tranche. Basically, the difference between the real price and the tariff paid by the customer was covered by the state budget. In practice, the compensation scheme was supported by suppliers, with the state still having to settle approximately 6–8 billion lei with them. With the elimination of this subsidy, the entire value of the bill is fully borne by the consumer.

It is important to note that, compared to the peak period 2022–2023, prices in current contracts have decreased considerably – in some cases even by half. However, bills are higher compared to those in previous months, because consumers no longer benefit from the protection offered by the cap, and VAT has been increased”, specifies Laurențiu Urluescu.

For household consumers – vulnerable, in a situation of energy poverty, the authorities introduced, through GEO no. 35/2025, a support mechanism that provides for a monthly aid of 50 lei for paying the electricity bill.

According to OUG 35/2025, about 1.3 million households are experiencing problems paying their bills. However, not all Romanians qualify as vulnerable, AFEER officials emphasize.

“We understand the concerns of customers, especially those who had a consumption below 100 kWh/month, but who are not necessarily vulnerable and, consequently, do not benefit from the new subsidies. If, until June 30, 2025, they paid a bill of a maximum of 68 lei/month, from July 1 they ended up paying more than double! On the one hand, because the price is no longer capped and subsidized by the state, but is the real price, from the contract. On the other hand, most likely, their consumption increased: as the whole summer was a hot one, many used fans or air conditioners, and their consumption increased significantly. For example, with an increase in consumption from 100 to 150 kWh/month, with the new VAT of 21%, the bill reaches 200 lei/month, almost a tripling… The impact on the population is, indeed, very high!

“And not only those who consume less than 100 kWh/month will be affected by the new bill level; the cessation of direct support from the state, along with increased consumption and increased taxes, have led to an obvious increase in bills for most consumers. Approximately 7 million households in Romania consume less than 200 kWh per month, which means that the impact is widespread,” the president of the suppliers’ association also said.