Moldovan energy regulator sets new mechanism for calculating thermal power price

The price of thermal power will be calculated based on a new mechanism, according to which the supplier will be obliged to optimize its activity, to minimize the costs and to draw in the investments needed to develop, upgrade and reconstruct thermal networks.

The Management Board of the National Agency for Energy Regulation (ANRE) adopted the new calculation methodology at a public meeting. The document will enter into force after it is registered with the Justice Ministry and published in the official paper Monitorul Oficial.

ANRE director general Victor Parlicov said the new methodology will encourage the thermal power suppliers to make investments to improve the efficiency and quality of the provided services. «It does not mean that the tariff for end consumers will increase, as the price of gas accounts for 70 per cent of this tariff. The difference is that the enterprise's profit will not be calculated as percentage from spending, but as percentage from investments. The enterprise was previously interested in increasing its spending to raise its profit. From now on, spending should decrease and quality should improve. We hope that in the nearest future the parliament will approve a law on thermal power, which would allow the ANRE to establish the quality parameters for the thermal power delivery service,» Parlicov said.

Adapted from Moldpres