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What is the cogeneration tax and how will your energy bills change after it has been increased

The contribution for high-efficiency cogeneration represents an amount owed monthly by each electricity consumer, for the promotion and development of energy production in a high-efficiency cogeneration system, in order to increase energy efficiency and improve the security of energy supply, on the energy market in Romania.

Someone is counting money next to an employee reading the electricity meter

The cogeneration fee increased by 62% on November 1, 2025

The suppliers of consumers on the territory of Romania invoice the contribution for high-efficiency cogeneration to the consumers with whom they have signed electricity supply contracts, for the electricity delivered.

What is the cogeneration tax and how is it calculated

The contribution for high-efficiency cogeneration is highlighted separately in the electricity bill, on a separate line containing the name of the product, the amount of active electricity billed, the unit value of the contribution (unit price) and the total value of the contribution determined as the product of the unit value (expressed in lei/kWh), approved by order of the president of ANRE, and the amount of active electricity (expressed in kWh).

The value of the contribution for high-efficiency cogeneration is determined by ANRE, based on realized and forecasted costs and revenues, is established for a period of 12 months and can be adjusted at the beginning of the second semester of each year;

The value of the contribution for high-efficiency cogeneration in force from November 1, 2022 is 0.00333 lei/kWh, exclusive of VAT, according to ANRE Order no. 130/2022.

The cogeneration fee has increased since November. The effects are also seen in January 2026

Energy expert Dumitru Chisăliţă, president of the Intelligent Energy Association (AEI), explained that since 2011, Romanians are obliged to pay a “fee” of high-efficiency cogeneration for every kWh consumed, with the aim of financing the construction of new plants/modernization of existing ones, which have a higher efficiency and thus end up producing much cheaper electricity and thermal energy in the future.

According to him, the speculation of some articles of the European Directive on the production of electricity in high-efficiency cogeneration, allowed the change of the purpose for which the cogeneration tax was designed, and was diverted to continue “disguised subsidization” of the thermal energy production system.

“The initial duration of the scheme was 2011-2023 and was later extended until 2033. The value of the tax evolved during this period, reaching the value of 0.00136 lei/kWh starting from November 1, 2025, when it will increase by 62% / 0.0052 lei/kWh (from 0.0084 to 0.0136 lei/kWh)”explained Chisăliță.

How much will the energy bills go up

Duitru Chisăliță explained that this increase in the amount of the cogeneration tax causes a 0.5% increase in the price of electricity. Of course, this increase in the price of electricity is not significant, but the question of equity arises: Why should an electricity consumer from a village in the Apuseni Mountains who has no income pay part of the thermal energy bill of a person who lives in a city with salaries of thousands of euros?

Starting from November 1, 2025, a reduced VAT of 11% for heating enters into force, valid until March 31, 2026. intended for heating the population, schools, hospitals and other public institutions, but only between November 1 and March 31, according to Law no. 39/2023 and the updated Fiscal Code (art. 291 par. 3 letter n). The price billed to the population for one gigacalorie (Gcal) in Bucharest from November 1, 2025 is 366.94 lei including VAT.

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“Thus, in the winter of 2025/2026 we have an increase in the price of thermal energy for the final consumer by 6%, due to the increase in VAT from 5 to 11%. In this context, the average cost of thermal energy in Bucharest in the winter months of 2025/2026 they will be higher by about 24 lei/month for a studio apartment up to 54 lei/month for a 4-room apartment”explained the energy expert.



Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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