Power rates might increase in Moldova due to national currency's depreciation

Chisinau, 16 January /MOLDPRES/ - The power rates might increase, given that the Moldovan currency (Leu) continues to depreciate and exceeded by far the level calculated when setting the price in 2012. The RED Union Fenosa Joint Venture presented the concerned calculations to the National Agency for Energy Regulation (ANRE).

After the Gas Natural Fenosa venture has divided into two companies, one supplying and another distributing, ANRE is to approve the appropriate rates. „The respective calculations were submitted, we are expecting a decision in this respect,” the head of the Gas Natural Fenosa foreign relations and communications department of the mentioned company, Vasile Gribincea said.

Gribincea added that „the last updating of the rate took place on 11 May 2012, and since then more changes have taken place in the structure of prices, including on the foreign exchange market. Due to this fact, a negative difference was formed, which was not adjusted in time in the rate and which must be taken into consideration, along with the current costs, which make up the rate”.

In the present tariff, the related exchange rate is of 11.83 lei, which is much lower than the real exchange rate at present. At the same time, we should also point out that about 69 per cent of the power rate's value represents the electricity purchasing price.

Over 75 per cent of the present power consumption in the work area of RED Union Fenosa is covered by imports. The electric energy is bought at a price of 6.8 cents per KW/hour.

„There is a great risk that the rates for regulated services to be revised in the sense of increase in 2015, in the context  of a higher depreciation of the national currency against the price used in 2012, when „these tariffs” were set”, the National Bank of Moldova said in a press release on 15 January.

When setting the price for gas, ANRE took into account the rate of 11.9 lei for one dollar, whereas when establishing the price for power it was, respectively, of 11.83 lei for a dollar. The exchange rate leu/dollar was of more than 15.5 lei for a dollar in late 2014, and hit 16.6640 after the first half of January 2015.

According to the provisions of the Law on electric energy, two distinct companies, one for distributing electricity and the other for supplying electric energy at regulated tariffs, were created by re-organisation. As a result, Gas Natural Fenosa Furnizare Energie (Energy Supply) will further provide power at regulated rates, whereas RED Union Fenosa will provide only the distribution service.