Energy Minister Victor Parlicov answered the questions of economic operators who are asked to choose by 1 July which gas market they want to remain in – the free or the regulated market, according to the provision of the Commission for Exceptional Situations of 31 May. A meeting on this subject was organised with the entrepreneurs’ associations and the Economic Council to the Prime Minister.

According to Moldovagaz data, in recent months, 86 economic agents have chosen to change their gas supplier by migrating from the supplier of last resort, which has a tariff regulated by the National Agency for Energy Regulation (ANRE), to free market suppliers. 54 companies have two contracts each, being simultaneously in both markets. By decision of the SSC, the Government intervened to stop this migration and make some changes in the regulatory framework.

The tariff regulated by ANRE is usually set annually, and includes the weighted average price of natural gas plus correction elements, whether negative or positive. Even though it has been in place since 2016, de facto market liberalisation has occurred relatively recently, when other suppliers started importing gas at more favourable prices on the international market.

Minister Victor Parlicov said that the government welcomes the liberalisation of the market in line with European legislation, but believes that fairness between consumers must be preserved in the liberalisation process. Thus, negative deviations, which are money not paid by consumers for more expensive gas, are to be paid by all. “Mature, responsible consumers who are able to take all the risks, including those of not supplying gas, balancing and other risks, are entering the free market. Those who choose to exit the free market must know and assume the consequences,” said the Energy Minister.

ANRE Director Alexei Taran said that if some 2.5 billion lei of negative tariff deviations had not accumulated at the end of last year, prices this winter would have been lower and would now be even lower. At the same time, the deviations have been part of the methodology for decades.

It was agreed that on Monday Moldovagaz will submit the calculations of the single fairness payment to all economic agents affected by the SSC decision. Companies that choose to leave the free market will have to pay it. One of the proposals was that this payment should be made in instalments until the end of the year, following the logic of recovering tariff deviations through regulated prices.

Minister Victor Parlicov announced that the ministry continues to work with ANRE to provide a permanent solution to such a problem, which will give business more predictability.

The Secretariat of the Economic Council to the Prime Minister is supported by the European Bank for Reconstruction and Development, funded by the UK Government’s Good Governance Fund.