During the next few days, Moldovagaz will ask NAER to adjust the natural gas tariffs based on the new formula agreed with Gazprom, said Deputy Prime Minister Andrei Spînu. He admitted that the tariffs for end users will grow, but assured that the Government is working on a considerable social package to help the citizens pay the bills in winter. He said that two mechanisms for providing social assistance are prepared: based on incomes and based on consumption, IPN reports.
Andrei Spînu noted the price calculation formula agreed with Gazprom cannot be made public as it is a trade secret. But this formula is advantageous to the Republic of Moldova and will enable to reduce the purchase price during the next two months as the price on the international market already decreases.
“It goes to a mixt formula that takes into account the oil price and the stock exchange price of natural gas during each period of the year. For November, the preliminary price will be US$450 per 1,000 cubic meters of gas. This price is twice lower than the stock exchange price. The price will be set monthly and for December can be lower than US$400 – between US$390 and US$370, depending on the gas price the given month. The price the last few days declined slightly,” Andrei Spînu stated in the program “In Depth” on ProTV Chisinau channel.
He assured that the Government will not allow the citizens alone in winter. The persons with low incomes and those who consume modest amounts of natural gas will be offered state support.
“There are two separate mechanisms. There is the social protection mechanism with a monthly sum intended for low-income families. The second mechanism to provide assistance through bills will depend on consumption. For example, the first 50 cubic meters of gas will be subsidized in a particular way for everyone. The next 50 cubic meters will be subsidized to a smaller extent for those who consume more. No amount will be subsidized if consumption is higher than 150 cubic meters of gas,” explained the official.
Andrei Spînu said the National Agency for Energy Regulation in several days will make public the final decision on the gas tariffs. The state will provide assistance only to overcome this anomaly on the international market, when the natural gas price is exaggeratedly high. The situation is expected to return to normality in several months.
Under the five-year-contract signed by Moldovagaz and Gazprom, the purchase price of gas will be calculated according to the formula stipulated in the previous contract. The Moldovan authorities pledged to clear the historical debts to Gazprom, which is the debts of the right bank of the Nistru only, following an independent audit.
