Energocom company of Moldova presents reasons for requesting adjustment of gas tariffs

The request to adjust the natural gas tariff was submitted by Energocom in the context of a significant increase in the gas purchase price, influenced by the conflict in the Middle East. In addition, the company has accumulated negative tariff deviations of about 106 million lei. The explanations were provided today by the acting general director of Energocom, Eugeniu Buzatu.

Thus, at the beginning of the current year, when the current gas tariff was set, the purchase cost was approximately 30 euros per MWh, but after the outbreak of the conflict in the Middle East, it has risen steadily, currently reaching about 56 euros per MWh.

“At the beginning of the current year, when the tariff exercise for setting the regulated price for consumers took place, the purchase cost of gas was about 30 euros per MWh. Subsequently, starting from March, after the outbreak of the conflict in the Middle East, which affected the global gas market, prices began to rise, reaching today 56 euros per MWh. So, we are seeing, depending on the month, an increase of up to 100 per cent. These are developments that are beyond our control,” emphasized Eugeniu Buzatu.

According to data unveiled by Energocom, in the current gas tariff, the purchase price accounts for 66 percent, which makes tariff adjustment necessary once the purchase cost has increased significantly.

At the same time, the Energocom director explained that, in the event of a steep rise in prices or if the total regulated revenue is exceeded positively or negatively by more than 1 per cent, the supplier is obliged to submit to the regulator a request for tariff adjustment. Thus, another factor that led to the need to submit the tariff adjustment request is the fact that Energocom has accumulated negative tariff deviations worth 106 million lei.

“Presently, the deficit stands at 106 million lei, which exceeds that 1 per cent of the total regulated revenue. This was one of the factors underlying the submission of the tariff adjustment request to the regulator,” added Eugeniu Buzatu.

At the same time, the head of Energocom noted that, if the tariff is not adjusted now, the negative tariff deviations would increase and would later be included in the tariff, with a proportionally higher impact.

“We have already accumulated a negative deviation of 106 million lei. If prices are not adjusted in line with reality, Energocom will continue to accumulate deviations, which it will recover later, in another tariff exercise,” said Eugeniu Buzatu.

On July 15, Energocom submitted the request on the adjustment of regulated prices for the supply of natural gas to certain categories of final consumers to the National Energy Regulatory Agency (ANRE). According to the institution, “the request is determined by a significant change in the costs of procuring natural gas, triggered by external factors independent of the supplier’s activity.”

Acting Energy Minister Dorin Junghietu said that the evolution of the conflict in the Middle East continued to directly influence energy resource prices on international markets, with effects including on Moldova, which purchases natural gas at market prices. According to the official, the Strait of Hormuz is one of the most important routes for global trade in liquefied natural gas, and any escalation of the conflict in the region is immediately reflected in international prices. Under these conditions, the effects are also felt by Moldova, since the country imports gas at international market prices, which are influenced by global events.

The minister also said that “if tariff adjustments are postponed, the real costs do not disappear; they turn into tariff deviations that affect the financial stability of energy companies and, ultimately, Energocom’s ability to ensure continuous natural gas supply.”

The National Energy Regulatory Agency (ANRE) today said that it had received the request of JSC Energocom regarding the examination and approval of regulated prices for the supply of natural gas to certain categories of end consumers, in the context of the public service obligation. The request was published on ANRE’s official website and the agency’s specialists are examining the materials and calculations submitted by JSC Energocom. After the analysis is completed, the institution will draft and publish its own decision proposal for public consultations.