Moldova's Gas Pricing Risk Mitigation Proposal Unveiled

Moldova's energy sector is facing significant challenges due to its reliance on imports and volatile global gas prices. To mitigate this risk, Sergiu Tofilat, an energy analyst, has proposed a phased gas purchasing approach.

Under his plan, natural gas would be purchased in stages based on a monthly or quarterly schedule, with state institutions permanently monitoring the procurement process. This approach is modeled after the European Union's gas stock establishment mechanism.

Tofilat also suggests that gas purchased by transmission and distribution operators for technological consumption should only be bought through authorized trading platforms with multiple bidders. He believes this would promote sufficient competition and prevent higher costs, which are then passed on to consumers in the form of tariffs.

In addition, Tofilat supports the Ministry of Energy's proposal to review the regulated gas supply price quarterly. This more frequent adjustment would help limit differences between real costs and those included in the tariff.