The reason for the increase in electricity prices: Energy costs and “deviations” are pushing tariffs up

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Electricity tariffs could rise in the Republic of Moldova after the main suppliers, Premier Energy and FEE Nord, officially requested price increases. The companies submitted applications to the National Energy Regulatory Agency (ANRE), citing higher electricity procurement costs and accumulated tariff deviations, BANI.MD reports. Premier Energy requests a tariff of 3.83 lei/kWh for low-voltage consumers, while FEE Nord seeks 4.32 lei/kWh.

Both suppliers identify the cost of purchased electricity as the main factor behind the requested adjustments. Premier Energy estimates an average procurement price of 278.14 bani/kWh and total electricity purchase costs of about 8.74 billion lei. FEE Nord calculates a procurement price of 270.48 bani/kWh, with total expenses of approximately 2.55 billion lei for purchased electricity.

The companies also include regulated system components in the proposed tariffs. Premier Energy estimates transport services at 791.8 million lei and distribution at 2.07 billion lei, bringing its total projected costs to around 11.62 billion lei. FEE Nord calculates transport costs at 245.9 million lei, distribution at 979.6 million lei, and supply costs at 94.8 million lei, for a total of about 3.79 billion lei.

Both suppliers also seek to recover tariff deviations accumulated in previous years. Premier Energy includes 413.9 million lei in its request, while FEE Nord aims to recover 75.5 million lei.

Regarding regulated profit, the companies report relatively low profitability levels. Premier Energy operates with an estimated rate of about 1 percent, while FEE Nord reports around 2.46 percent. They state that the requested increases primarily aim to cover costs rather than generate additional profit.