Moldovan energy regulator increases electricity tariffs by 9.8 per cent

Chisinau, 13 November /MOLDPRES/-The administration board of the National Agency for Energy Regulation (ANRE) decided to suspend its decision of 18 July 2015 to increase tariffs by 15.4 per cent, and set up new tariffs today, which exceed the ones approved in 2011 by 9.8 per cent.

After finishing public debates on external audit reports on the calculation of new natural gas tariffs, ANRE decided to shrink them by 4.6 per cent against the level approved in July.

Thus, citizens with a monthly consumption of up to 30 cubic meters will pay 6,556 lei per 1000 cubic meters, while citizens using more than 30 cubic meters will pay 6,830 lei per 1000 cubic meters. An eight-per-cent value-added tax will be included for gas delivery-services, therefore, 525 and 546 lei, respectively, will be added to the final prices.

Thermal power stations and power plants designed to produce and provide cities with thermal energy through central heating systems, will pay 5,712 lei per 1000 cubic meters, compared to 6,028 as approved on 18 July. Other end consumers with gas installations connected to high-pressure distribution networks will pay 5,872 lei per cubic meters.

The ANRE management board said it would revise tariffs after the parliament had approved a draft law on natural gas providing for the abrogation of an amendment to that law, which entered into force in August 2014 and led to a substantial increase in gas transportation tariffs. Experts say the rise should be smaller in this case.

Last year’s decision to include international gas transportation services in transit regime into the transportation costs led to a 16-fold increase in the regulated transportation tariff.  

The deputy chairman of Moldovagaz management board, Iacob Cazacu, said new tariffs fail to cover all the expenses, and thus, companies will incur financial losses. He added that losses currently reach 3.7-3.9 million lei per day. Cazacu added that Moldovagaz would appeal against the ANRE decision.

Newly-approved natural gas and electricity tariffs will enter into force upon their publication in Moldova’s Official Journal. The latest modification of natural gas tariffs was made by ANRE in late September 2011, increasing the average tariff by 23.2 per cent, up to 5,664 lei per 1000 cubic meters.

According to the Economics Ministry, Moldovagaz is currently paying Gazprom 210.21 dollars per 1000 cubic meters against the price of 400.47 dollars paid in October 2011.

(Reporter V. Bercu, Editor L. Alcaza)