- Proper definition of the vulnerable consumer, so that aid gets to where it is really needed
- Reducing VAT on energy, a quick and fair measure that can mitigate the effects of market volatility
- Maintaining fiscal balance, by using EU or national funds to compensate for support measures
The proposal recently launched by the energy authorities to reduce VAT on energy is a quick and fair measure with the potential to mitigate the effects of market volatility. Its adoption would help to bring Romania in line with the policy lines promoted at European level and we believe that it would represent one of the desirable courses of action for the protection of all consumers. Moreover, in February 2025, the European Commission presented a plan to reduce energy costs in the EU, which includes the recommendation that Member States should reduce national electricity taxes in order to support consumers and the economy. The measure has been implemented by most European countries.
However, Romania must urgently adopt more concrete measures and fair to combat energy poverty, reduce pressure on the public budget and harness available resources to protect vulnerable consumers. The current interventions through generalized price caps on electricity and natural gas have proven to be ineffective, costly and distortive in the functioning of the energy market.
The package must include the correct definition of the vulnerable consumer which is not properly updated and does not sufficiently reflect the criteria imposed by the European Commission. The identification and support tools are not implemented efficiently, there is a lack of coherent and interconnected databases between institutions (ANAF, ANRE, town halls, ministries).
Against the backdrop of talks about insufficient budgetary resources we signal that Romania is losing out on non-reimbursable EU funds due to administrative inability to correctly define and identify vulnerable electricity and gas consumers. The European Commission has issued clear warnings that, without a clear framework, the sums allocated under numerous programs will not be settled.
How much is at stake?
- Romania has requested around €1.4 billion through REPowerEU. Part of the funds from the Energy Component of the NRRP (e.g. subsidies for energy efficiency at household level). These are conditional on the implementation of the protection of vulnerable consumers.
- The European Social Climate Fund provides financial support to help vulnerable households, vulnerable micro-enterprises and vulnerable transport users. Romania can benefit from an allocation of between € 5.05 and maximum € 6.01 billion, starting in 2026, if it finalizes the Social Climate Plan (including the determination of the number of vulnerable households and micro-enterprises) by 30 June 2025 at the latest.
The national budget is already facing major pressures. Without urgent reforms and targeted policies, Romania risks losing access to important EU funds and aggravating imbalances in the energy sector.
About ACUE
ACUE is a representative federation of the electricity, oil, gas and energy mining sector, representing the interests of major companies in the generation, distribution, supply of electricity and natural gas and related services. ACUE represents 23 companies in the energy sector, with more than 25,000 employees and an annual turnover of more than €5.5 billion.
About FPE
Federația Patronală a Energiei, founded in 1991, is a promoter of the actions necessary for Romania to enjoy abundant, affordable and environmentally friendly energy.
Federația Patronală a Energiei represents 95% of Romania's oil and gas industry and is gaining increasing relevance in the field of renewable energy and emission reduction technologies, in pace with their development in our country.
Our mission is to make the interests of the private sector and how they can be harmonized with national and European Union objectives known to European and national institutions, stimulating dialogue. Another objective is to inform and educate the general public and prepare them for the new realities in the energy field
