The Administration Board of the National Agency for Energy Regulation (ANRE) has warned RED Union Fenosa SA over certain flaws in its economic and financial activity and urged it to take concrete measures to rectify them, Info-Prim Neo reports. ANRE’s warning came following an assessment of the economic and financial activity of the power distribution companies owned by Union Fenosa Moldova, covering the period 2000-2006. Anatol Saracuta, head of ANRE’s Audit Division, said the members of the commission detected some violations of acting normative acts and a series of infringements as regards consumption and expenditure, purchase of goods and services. Thus, it was discovered that over the period 2000 –2006 the power distribution companies have wasted money on expenses which, in ANRE’s opinion, cannot be labelled as strictly necessary, and that is why these costs weren’t included in the fixed charge for distributing electricity. Owing to these unnecessary expenses, the company has today serious problems in financing projects aimed at remodelling, renewing and extending its power distribution networks, Saracuta said. The ANRE urged the management of RED Union Fenosa to formulate, within one month, an action plan aimed at rectifying the discovered flaws and to inform quarterly the Agency on the degree of its implementation. According to ANRE’s decision, the management of the company must introduce changes to financial accounts keeping in line with acting laws and regulations, to issue tenders for the purchase of goods and services on the basis of modified rules, based on exclusive criteria for the nomination of winning bidders and for making decisions regarding the purchase of goods. The ANRE will finalise soon the assessment of the economic and financial activity of Moldelectrica State Enterprise, after which it will monitor other enterprises working in the energy sector. According to the acting legislation, ANRE is supervising the commercial activity of the participants in the energy market and controls the extent to which they observe the terms stipulated in their licences.