Romanian individuals can’t currently produce electricity and sell it to the power grid because the Finance Ministry doesn’t know how to tax this activity. The situation is ridiculous, according to energy minister Anton Anton.

He said that there are pressures on his colleagues from the Energy Ministry to solve the legal framework so that individual consumers can also produce electricity and deliver it to the power grid, according to local Agerpres. However, the problem is not the legal framework, which exists, but the tax framework, which is not clear. The Finance Ministry hasn’t decided if individual consumers who also deliver electricity to the grid should pay VAT or not and how this VAT is determined.

The energy sector regulator ANRE initiated a draft order that provides that individuals who want to produce renewable energy with small capacity equipment, of up to 100 kW will be able to sell the energy they produce to the power grid and get it deducted from their electricity bill. However, the Finance Ministry hasn’t yet decided how to tax these individual electricity producers.

editor@romania-insider.com