Moldovan energy minister speaks about new value added tax thresholds for energy, additional funding for energy efficiency

The monthly consumption threshold at which 20 per cent value added tax (VAT) will be applied to electricity will be raised from 100 to 150 kWh, while the standard 20-per cent rate for natural gas will apply to volumes exceeding 150 cubic meters per month. The new provisions will enter into force on April 1, 2027, after the end of the heating season, in order to avoid placing an additional financial burden on the population during the cold period. The remarks were made by Energy Minister Dorin Junghietu made statements to this effect after the today’s cabinet meeting.

According to the minister, the adjustment of the electricity threshold was decided after an assessment of updated data on the average monthly consumption of households from Moldova, estimated at 140–150 kWh.

Thus, VAT will not be applied to the first 150 kWh of electricity consumed monthly, while the 20-per cent rate will be charged on consumption exceeding this level. In the case of natural gas, the first 150 cubic meters consumed monthly will continue to benefit from the reduced 8-per cent VAT rate, while the standard 20-per cent rate will be applied to volumes exceeding this threshold.

The new rules are scheduled to take effect on April 1, 2027, at the end of the heating season.

Another topic addressed by the energy minister concerned energy efficiency and reducing Moldova’s dependence on energy resource imports. Dorin Junghietu emphasized that investments in local production, renewable energy sources and reducing unnecessary energy consumption must become priorities for households, businesses and public institutions alike.

“The energy autonomy of businesses, households, and public institutions will also contribute to reducing energy imports, which are becoming increasingly expensive. The energy-efficiency goal in the residential sector, the economic sector and the transport sector must be a priority for this country. It is very important how efficiently we use energy,” the minister said.

In this context, the government approved the launch of negotiations to secure a loan and get an additional grant for the energy-efficiency programme for public institutions. The measure complements the support provided to small and medium-sized enterprises for installing energy-storage systems.

At the same time, the authorities are promoting the awareness campaign, Where Are We Losing Energy?, carried out in partnership with GIZ Moldova. According to the data presented, the residential sector consumes more than 40 per cent of energy resources, while transport accounts for approximately 23–25 per cent of consumption.

The national energy strategy aims to reduce dependence on imports and increase energy-use efficiency. Its objectives include reducing the share of electricity imports from 77 to 40 per cent, increasing the share of renewable sources in local electricity production to 85 per cent, raising the share of electricity in final consumption from 12 to 65 per cent and reducing energy intensity fivefold.

The minister also provided information on natural gas supplies. According to Dorin Junghietu, the Ukrainian authorities have temporarily lifted the export ban on approximately 15 per cent of the gas produced or stored in Ukraine. Discussions between the two sides are at an early stage and will continue at the technical level, in order to determine the available volumes and pricing formula.

These negotiations will be coordinated with the 24–25 contracts that Energocom has already signed for the 2026–2027 gas year. In addition, Moldova holds approximately 23–24 million cubic meters of gas from its security stocks in underground storage facilities of Ukraine.