Power increases in price by 23% for “Union Fenosa” consumers and by 44% for consumers living in the northern part of the country

Starting August the tariff for electric power will constitute MDL 0.96 per kWh for the consumers in the distribution networks of “Union Fenosa” and MDL 1.01 – in the distribution network of the northern part of the country. The National Agency for Energy Regulation (ANRE) has increased the tariffs for final consumers on Tuesday, July 31, following the request of distribution power networks. In this way, the power will be by 23% dearer in the centre and south of the country and by 44% - in the north of the country. RED-Chisinau, RED-Centru and RED-Sud will apply a tariff of MDL 0.82/kWh for the domestic consumers living in the apartment blocks without gas ranges, and for the economic entities connected to the 110 kV networks – MDL 0.69/kWh. The electric power distributed by RED-Nord and RED-Nord-Vest to the consumers without gas stoves will cost MDL 0.85/kWh. For the rest of the consumers the tariff will constitute MDL 1.01. General Director of ANRE Vitalie Iurcu told the journalists that as a result of the increase, the monthly expenses of a consumer served by RED-Nord and RED Nord-Vest will increase on average by MDL 20 (including MDL 17 for the domestic consumers from villages), and for those from the distribution zone of “Union Fenosa” – by MDL 16 (including MDL 10 for the domestic consumers from the rural zone). The higher tariffs are determined by the increase in the acquisition and transport price of power, caused by the increase in the tariffs for the production of power by the local power plants (by 1.85-fold); higher price of power imported in January – June 2007 (+0.01 cents/kWh monthly) and increase from 2.7 cents to 3 cents starting July. Also, the price of power will get higher due to the necessity of increasing the transport tariff of power starting July 2007 from MDL 3.93 to MDL 5.18/kWh. Iurcu said that the new tariffs were adjusted by ANRE according to the legislation and tariff methodology in force, by including in the tariff the consumption and expenses strictly necessary for the distribution companies. The higher tariffs of RED-Nord and RED-Nord-Vest can be explained by the necessity of covering the financial deviations created in the first quarter of 2007, as a result of applying a tariff by MDL 0.08 lower than “Union Fenosa”. The last increase in the tariffs for electric power delivered to the final consumers was made by ANRE in July 2003. ANRE could re-examine the tariffs at the beginning of the next year because of the new contract on power delivered by Ukraine.