Procedure to Grant Compensations for Natural Gas Set by Government Regulation

The regulation regarding the refunding of expenses, linked to the granting of compensations for home consumers in relationship to the increase of tariffs on natural gases, has recently become valid after the publication of the “Official Monitor of the R. Moldova”. The current regulation was elaborated with the goal of executing the law regarding the means of social protection for the population linked to the increase of tariffs for natural gases on July 27, 2006. The law stipulates the compensation of expenses on natural gases, the payment by means of the state budget for partial obligations of home consumers for the monthly consumption of natural gases of a volume of up to 30 cube meters per month per flat. According to the regulation, the home consumer is a person using the natural gases for house necessities, and not for the practice of activities with the goal of making profits. The regulation also stipulates the quantum of compensated expenses, which is calculated as 50% of the difference between the size of the newly-established tariff on natural gases and the old tariff, including VAT (5%), multiplied by the volume of effectively consumed natural gases within the limit of the 30 cube meters. Only those home consumers, which have contracts for the provision of gases by gas distribution enterprises with the indication of the amount to be compensated for the expenses on delivered gases in the personal accounts of the home consumers, have the right to be compensated. The monetary means granted as compensation are not issued to home consumers. The old tariff on natural gases delivered to home consumers was 1.46 lei (1.53 lei with VAT) for 1 cube meter, but the new tariff has been established at 2.19 lei (2.30 lei with VAT) The quantum of the compensation of expenses for 1 cube meter is calculated at 0.3864 bani, also including a VAT tax of 5% which the consumers have to pay.