The Ministry of Energy aims to introduce measures to reduce certain costs in order to lower energy bills, and one possible solution could be a reduced VAT rate, although the decision ultimately lies with the Government and the Ministry of Finance, said Energy Minister Sebastian Burduja on Tuesday.

‘I believe that in the short term we can consider certain adjustments. Any Romanian can look at the bill they receive, any company can do the same, and they will see that it includes multiple components. What we have set out to do is to introduce measures that reduce as many of these cost components as possible. We are looking at VAT and trying to have an honest dialogue with the Ministry of Finance about how much is currently collected from VAT under the compensation-cap mechanism, and what would be collected after July 1 – perhaps with a lower VAT rate than the current 19%. Of course, this goes against the prevailing trend, we are aware of that, but at the same time, we are looking, for example, at Greece, which also has high electricity prices for reasons similar to those in Romania, and where VAT is just 6%. Do we want to support the economy? Do we want to be more competitive? Do we want Romanians to pay lower energy bills? Maybe a reduced VAT rate is one of the solutions. It is true that we can propose it, but the decision will rest with the Government and, naturally, the Ministry of Finance,’ the Energy minister explained.

He also referred to other cost components and underscored that distribution costs and the binomial tariff are under review, something the market is demanding.

‘We are also looking, after July 1, at demand-side management. We can encourage Romanians to consume electricity when it’s cheaper and thus pay lower bills. I think it is a good practice, one already being implemented in Western Europe, for example. This approach will be formalised in the new government programme and implemented by the next government,’ Burduja said.

The Energy Minister participated Tuesday in the Eurelectric Power Summit 2025, held in Brussels.

AGERPRES