State-owned power producer Hidroelectrica wants to file a case against the Romanian state at the European Court of Justice (ECJ). The company wants to get rid of an annual tax on water amounting to EUR 80-100 million.

The tax on the water used for energy and agriculture is illegal, according to Hidroelectrica representatives. They argue that the ECJ ruled last year that the water used for energy and irrigations can’t be taxed. The tax on water represents 15% of the company’s costs.

In Romania, this amounts to EUR 25 for each 1,000 cubic meters, whereas in France, the tax is EUR 0.5, or 50 times lower, said Remus Borza, the judicial administrator of Hidroelectrica, which is still under insolvency, reports local Economica.net. This fiscal burden makes Hidroelectrica uncompetitive, according to Borza.

Only four countries in the EU still have a tax on the water used for energy, namely France, Italy, Greece, and Romania. However, Romania has by far the highest tax, said Borza.

editor@romania-insider.com