Moldova will purchase electricity from Cuchurgan power plant at lower price

The private electric power distribution company RED Union Fenosa and the state-run companies RED Nord and RED Nord-Vest during the next year will buy electricity from the Transnistrian Cuchurgan power plant for 5.5 cents per kWt/h, as against 5.8 cents kWt/h at present, Info-Prim Neo reports. The contract was signed in the presence of Deputy Prime Minister and Minister of Economy Valeriu Lazar. It will take effect on March 1, Info-Prim Neo reports. The negotiation of a lower price was possible following the liberalization of the electric power market, Valeriu Lazar said. A new law allowing the power distribution companies to negotiate directly with the power producers and suppliers began to be used on February 18. “Negotiations were carried out with several power suppliers, including from Ukraine, but the Cuchurgan power plant offered a lower price and gave a guarantee that it will remain unchanged even if the natural gas grows dearer,” the president of RED Union Fenosa Silvia Radu said. Union Fenosa will purchase 2.4 billion kWt/h of power from the Cuchurgan power plant. The state-run company Energocom will supply a lower volume to ensure a balance, 1.2 billion kWt/h. When the law on electric power came into force, 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. Valeriu Lazar said the state-owned power distribution networks will be able to negotiate directly with the suppliers only until they settle their debts to Energocom. The future role of this company has not been yet decided. Carina Turcan, official of the Cuchurgan power plant, said the signed contract was important as the plant supplies about 70% of the electricity it generates to the right bank of the Nistru. As to the price, Turcan said it is lower because the power plant introduced an economical regime and reduced the production costs. The Transnistrian Cuchurgan power plant belongs to the Russian company Inter RAO UES.