The National Agency for Energy Regulation (ANRE) set the basic costs for electricity distribution at S.A. “Northern Electricity Distribution Networks” (RED Nord) at approximately 517.4 million MDL for the first year of the new regulatory period.
RED Nord initially requested approval for base costs of 573.9 million MDL. After reviewing the documentation and actual expenses, ANRE reduced the amount by roughly 56.6 million MDL, applying the principle of minimal, necessary, and justified expenditures.
Personnel expenses make up the largest component, totaling 305.5 million MDL, which is 11.2 million MDL less than RED Nord requested. ANRE calculated this figure based on the projected minimum salary for 2026 of 6,300 MDL, the qualification level of staff, a complexity coefficient of 1.35 applied to the electricity sector, and legally mandated bonuses.
ANRE approved electricity metering costs at 116.4 million MDL, 2.3 million MDL below RED Nord’s request, and reduced network maintenance and operation costs by 1.27 million MDL, setting them at 3.96 million MDL.
The agency made the largest adjustments to distribution and administrative expenses, cutting them from 121.1 million MDL requested to 79.1 million MDL, a reduction of nearly 42 million MDL. Material costs were set at 12.36 million MDL, close to the operator’s request.
In total, ANRE approved base costs of approximately 517 million MDL for RED Nord. The agency will use this amount to calculate electricity distribution tariffs for consumers in the northern region of the Republic of Moldova during the next regulatory period.