Natural gas tariffs for end-users have been raised

The Administration Board of the National Agency for Energy Regulation (ANRE) Friday approved a new average natural gas tariff for final consumers. In 2008, the tariff will be 2,775 lei per 1,000 m3 (without the VAT of 5%). The new tariff is by 10.3% higher than the present one of 2,515 lei per 1,000 m3. When fixing the tariff, ANRE took into account the results of the analysis of the 2007 costs of Moldovagaz SA, the positive financial deviations when selling gas in 2007. The increases stem from the 12.4% rise in the purchase price of natural gas from January 1, 2008 (from 170 to 191 USD per 1,000m3 ), the estimated 7.8% reduction in the volume of natural gas that will be consumed in 2008, the projected 11% fall in the incomes planned to come from transporting natural gas to other states in 2008 following the appreciation of the national currency, the higher gas transportation and distribution costs following the extension of the transportation networks (putting in commission of the gas pipeline Tocuz-Cainari - Mereni) and of the distribution networks by 1,500 km or 11% in 2007, and others. Under the EU directives and the Cooperation Agreement between the Government and the IMF regarding the setting of adequate and non-discriminatory tariffs for all the categories of consumers, ANRE approved several types of gas tariffs. The thermoelectric plants will pay 2,375 lei per 1,000 m3 (1,955 lei per 1,000 m3 at present); the thermal plants – 2,517 lei per 1,000 m3 (2,267 lei per 1,000 m3); the household consumers that consume up to 30 m3 of gas a month – 2,666 lei per 1,000 m3 (2,406 lei per 1,000 m3); the household consumers that consume more than 30 m3 of gas a month and the other categories of consumers – 3,161 lei per 1,000 m3 (3,022 lei per 1,000 m3). The decision will take effect after published in the Official Gazette. ANRE director general Vitalie Iurcu said that tariffs have been increased in order to cover the strictly necessary natural gas purchase, transportation and distribution costs. He stated that the new tariffs for thermoelectric plants and the consumers that consume up to 30 m3 of gas a month will be higher than the average tariff because these consumers have been subsidised by the other categories of consumers, including the population that uses natural gas to heat the houses. This will be the fist step aimed at the gradual elimination of cross subsidies between gas consumers, which will improve the situation in the area and will stimulate the gasification of the country’s settlements, Vitalie Iurcu said. According to the ANRE’s estimates, when the new tariffs take effect the monthly gas-related expenses of a household consumer will rise by an average of 9.9 lei, the electricity–related expenses by 2.9 lei, while the heat supplied by the thermoelectric power plant CET Nord will be by 38.1 lei more expensive. The last figure can vary according to the level of compensations allocated by the Balti City Hall to heat consumers. This benefit is now 120 lei per Gcal.

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