Hearings on gas rate rise continue

The National Energy Regulatory Agency (ANRE) continued on Tuesday its hearings on the potential rise in the gas rate paid by final consumers, following last week's application by the national operator Moldovagaz for an increase from 4,098 to 4,636 lei per 1,000 cu.m., Info-Prim Neo. Today's hearings involved ANRE directors, the managers of heating&power stations, of Termocom, representatives of labor unions, consumer protection and other civil society organizations. Moldovagaz president Alexandr Gusev justified the application for the rise by saying that the price of imported gas rose by over 11% in the first quarter of 2011; the total length of the distribution network and the number of consumers also rose by 8% and 4%, respectively. These two factors require additional expenses on maintenance, installation of meters, other repair expenses. Another argument for the increase is the depreciation of the leu against the dollar, the latter being the currency in which the payments are made. Both ANRE and civil society representatives agreed that the bulk of the gas rate represented the buying price, over 80 percent. A proposal considered by the ANRE is to increase the rate by 14%, more than currently requested by Moldovagaz, so as to avoid increasing it in the eventuality of further rises in gas prices during the year. The Moldovagaz warned stated earlier it would sue ANRE if it failed to satisfy its application.