The power distribution companies (REDs) from March 1 will purchase electricity from the Transnistrian Cuchurgan power plant for 5.5 cents per kWt/h, as against 5.8 cents kWt/h until now. Under the new contract, RED Union Fenosa will buy 2.4 billion kWt/h of power, while the state-run companies RED Nord and RED Nord-Vest – 1.2 billion kWt/h of power, Info-Prim Neo reports. The Cuchurgan power plant now supplies 70% of the electricity it generates to the right bank of the Nistru. Carina Turcan, president of the plant's Administration Board, said the agreed price was lower because the power plant introduced an economical regime and reduced the production costs. A new law allowing the power distribution companies to negotiate directly with the power producers and suppliers took effect on February 18. The state-run company Energocom lost its monopoly on the negotiation of the volumes of power to be bought and the supply of electricity. However, this company signed the contract with the Cuchurgan power plant in the name of the state-run REDs. Deputy Prime Minister Valeriu Lazar said the state-owned power distribution networks will be able to negotiate directly with the suppliers only after they settle their debts to Energocom.