Moldovagaz Requests Tariff Cut Amid Controversy Over Proposed Reduction

Moldovagaz, Moldova's natural gas provider, has requested that the National Energy Regulatory Agency (ANRE) consider reducing the regulated tariffs and prices for gas in 2018. The company estimates a decrease of 11.4% in the average tariff for end consumers, from 5,545 lei to 4,914.97 lei per 1,000 cubic meters.

Moldovagaz based its request on an estimated acquisition price of $178 (3,155.88 lei) for Russian gas in 2018, compared to the current cost included in the tariff of 4,194 lei and a currency exchange rate of 17.68 lei per dollar. The supplier forecasts that this would result in a decrease of 25% in the acquisition price and a 14% drop in the exchange rate.

Victor Parlicov, an expert from the Viitorul institute, questioned the proposed tariff cut, stating that it is unclear why only an 11.4% reduction is being requested when the acquisition price has dropped by 25%. He suggested that other costs may have increased quickly and should be taken into account.

In a related development, Prime Minister Pavel Filip stated during a cabinet meeting that analyses had shown premises for decreasing gas tariffs by up to 20%. However, he noted that Moldovagaz had presented a different opinion, and the final decision would be made by ANRE. The prime minister also suggested finding a system of compensation for end consumers in case the price is reduced.