ANRE refuses to include Moldovatransgaz expenses in gas rate

The Board of the National Energy Regulatory Agency (ANRE) has refused to include the expenses of Moldovatransgaz in the gas tariff after finding that the company bought pipes and other equipment at inflated prices. The ANRE said in a press release that an audit at Moldovatransgaz revealed that it had 240 million lei in unjustified expenses. The Agency noted that Moldovatransgaz regularly avoided purchasing pipes and equipment directly from manufacturers under the pretext that it had no access to them. It was further found that the company's executives administrated incompetently procurement procedures and used off-shore intermediaries. At its public meeting on Thursday, the ANRE ordered Moldovatransgaz to present an action plan to remove or remedy the discovered deficiencies. The audit report will be presented to the Prosecutor General's Office for examination and to Parliament and Government for information. Moldovatransgaz in a subsequent press release denied the Agency's accusations of unjustified expenses and use of interpediaries in procuring goods and servicies. The company also disagreed with the Agency's decision to refuse inclusion of these expenses in the tariff.