Energy Community Secretariat deems rates adjustment in Moldova necessary to avoid possible energy crisis

Chisinau, 29 July /MOLDPRES/ - The adjusting of electricity rates for end consumers was necessary to avoid a possible energy crisis, which intensified with the depreciation of the Moldovan leu, according to the Energy Community's Secretariat. The European institution posted a statement welcoming the decisions of the Board of the Moldovan Energy Regulatory Agency (ANRE) on its website on 28 July.

Secretariat’s Deputy Director Dirk Buschle said: “ANRE’s decision constitutes a necessary pre-condition for stabilising Moldova's energy sector, but it must be continued, by making more steps and fundamental reforms.”

The document also says that the approval of rates for electricity distribution service will remove the non-observance by Moldova of its obligations, under Directive 2009/72/EC concerning common rules for the domestic electric energy market.

In May 2015, the Energy Community Secretariat sent an open letter to ANRE, initiating a preliminary procedure of sanctioning for failure to adopt the distribution rates applicable to all eligible customers, including suppliers, ANRE’s press service has reported. The Secretariat gave the National Energy Regulatory Agency possibility, within two months, to comply with the legislation of the Energy Community.

ANRE on 18 July decided to increase the rates for natural gas supplied by MoldovaGaz by 15.4 per cent, the tariff for electricity supplied to consumers in the area provided by Gas Union Fenosa Energy Supplier by 36 per cent and by 30 per cent for RED North (northern electricity distribution network) and RED Nord Vest (north-western electricity distribution network).

The National Confederation of Trade Unions of Moldova (CNSM) demanded a review of the decision on approving new rates for natural gas and electricity. "Devaluation of the national currency sparked a wave of increasing in prices for imported products. The steep fall of the national currency triggered a price increase for medicines, with prices of more types of goods, especially imported ones, growing by several times", says the declaration of the unions. To avoid social tensions, CNSM asks for an urgent indexation of wages, allowances and pensions.

If the unions’ claims are overlooked, CNSM informed that it would resort to staging protests.

(Reporter V. Bercu, Editor M. Jantovan)