Moldovan Energy Ministry proposes gas market solutions amid rising prices: quarterly tariff adjustments, lower distribution costs

The Energy Ministry has put forward proposals to improve the way the gas market of Moldova operates, as natural gas prices on European markets continue to rise under the pressure of geopolitical tensions. This has a direct impact on Moldova, which is dependent on imports.

“We cannot control gas prices on international exchanges. However, we can control how the market works in Moldova,” said Energy Minister Dorin Junghietu.

The first proposal announced by Junghietu concerns amending the methodology for setting gas tariffs, so that the National Energy Regulatory Agency (ANRE) can adjust them quarterly, both upward and downward, depending on international price trends.

“The first is amending the methodology, so that ANRE can adjust tariffs quarterly, both upward and downward, depending on international price developments. Consumers must benefit more quickly not only from possible price increases, but also from decreases. We introduced a similar mechanism for oil products in last spring, and it helped avoid a major fuel shortage,” said Dorin Junghietu.

The second proposal refers to reducing domestic costs, including through improving the efficiency of distribution companies and local savings.

“The second direction is to reduce domestic costs. After the purchase price of gas, the largest component of the bill is distribution. At present, this is almost 4 lei for each cubic meter and accounts for almost 30 per cent of the tariff. For this reason, I previously requested that Moldovagaz optimize the activity of the 12 distribution enterprises, including by reorganizing them into a single company. A more efficient structure means lower administrative costs and, over time, cheaper services for consumers. In times of volatility, decisions must ensure both the security of gas supply and the supplier’s ability to purchase in advance the volumes needed for the winter. In parallel, it remains essential to reduce all costs that depend on us and can be optimized,” the energy minister said.

The proposals were put forward as the price of natural gas on European markets reached 64 euros/MWh today.

“This is the clearest signal that the market remains under pressure from geopolitical tensions and from increasingly fierce competition for liquefied natural gas,” said Dorin Junghietu.

The minister noted that, in this context, the reason for adjusting gas tariffs for Moldovan consumers is that Moldova cannot isolate itself from developments on the European market.

At the same time, the minister stressed that all of Europe had counted on gas prices falling after the outbreak of the conflict in the Middle East. For this reason, European gas storage facilities are currently filled to a lower level than in previous years, and competition for each available volume is greater.

The energy minister also rejected claims promising “cheap gas from Russia.”

“This is a baseless promise. Beyond the moral aspect of financing an aggressor state, there is a technical and economic reality: the gas pipeline transiting Ukraine was damaged back in 2024, and transport via TurkStream involves costs that make this option non-competitive,” Dorin Junghietu emphasized.

Energocom on July 15 submitted to ANRE an application to adjust the regulated prices for the supply of natural gas to certain categories of end consumers. According to the institution, “the request is driven by a significant change in the costs of procuring natural gas, triggered by external factors that are independent of the supplier’s activity.”

ANRE today will hold a news conference, at which it will present the data and arguments regarding the draft decision on the approval of regulated prices for the supply of natural gas.