Prime Minister Vasile Tofan says an increase in natural gas tariffs cannot be avoided as prices on international markets have risen again. However, he said authorities are looking for ways to reduce the impact on consumers, including by optimizing costs and providing compensation.
“Unfortunately, the markets are not helping us. In the second half of July, gas prices on international markets increased significantly,” Tofan said on Wednesday, August 19.
The prime minister noted that after temporarily falling to around €52 per megawatt-hour, forward prices for the fourth quarter had risen again to approximately €64/MWh.
“That does not mean, however, that we should leave things unresolved,” Tofan said.
According to the prime minister, authorities are reviewing transportation, distribution and administrative costs included in the tariff. He said these expenses can be controlled, unlike international gas prices.
“We cannot control the market price of gas, but we can control administrative costs, transportation and distribution,” the official explained.
The Government is also considering compensating part of the tariff increase for vulnerable households. Tofan said authorities need to identify funds in the state budget to support families that would be most affected by the higher prices.
Meanwhile, Moldova’s natural gas tariff is set to be revised. On Wednesday, August 19, the National Agency for Energy Regulation (ANRE) is holding public consultations and discussions with experts and civil society representatives. A final decision is expected on Friday, August 21.
Under the proposed tariff, household consumers would pay 20.30 lei per cubic meter of gas, including VAT. This would represent an increase of 5.88 lei, or approximately 41%.
Electricity tariffs could also increase in Moldova. Energy Minister Dorin Junghietu said on Wednesday, ahead of a Government meeting, that any increase would depend on the average cost of electricity procurement.
Among the factors contributing to higher regional electricity prices, the minister cited the shutdown of several generation units at Hungary’s Paks and Romania’s Cernavodă nuclear power plants, as well as reduced generation capacity in Bulgaria.
Junghietu said authorities are waiting for data on the average electricity procurement cost before determining whether electricity tariffs will also need to be increased.