ECO-BUS WEEKLY DIGEST January 10-16. Most important Economy & Business news by IPN
●MONDAY, January 10
“Premier Energy” asks to raise electricity rate from 1.51 lei/kWh to 2.79 lei/kWh
“Premier Energy” SRL requested the National Agency for Energy Regulation to consider increasing the electricity rate for end-users from 1.51 lei/kWh to 2.79 lei/kWh, IPN reports.
In its request, the company makes reference to the power supply price that was recently approved for the central supplier “Energocom” – 2.42 lei/kWh for November-December 2021 and 2.29 lei/kWh as from January 1, 2022, up 96% and, respectively, 86% from the price valid until the end of October 2021. This way, the newly approved prices push the purchase price of electricity up. The company also mentioned the evolution of the power selling prices on the market of Ukraine.
If the National Agency for Energy Regulation accepts the supplier’s request, the electricity will be more expensive as from February 1, 2022.
Moldova in January purchases gas for US$646 per 1,000 cubic meters from Gazprom
The purchase price of the natural gas supplied by Gazprom to Moldovagaz in January is US$646 per 1,000 cubic meters. It was determined based on the calculation formula stipulated in the contract for the supply of gas.
The current purchase price is higher than the price paid in November and December last year and was influenced by the continuous rise in gas quotations at European stock exchanges and the increase in the cost of the reference basket of oil products with which the purchase price of gas is correlated, IPN reports, quoting Moldovagaz.
The company noted it will be making every effort for the payments for current supplies to be made on time and fully so as to guarantee the uninterrupted supply of natural gas.
●TUESDAY, January 11
Diesel fuel prices up over 1 leu, gasoline prices up almost 2 lei during a month
The price of diesel fuel over a month rose by 1.3 lei, while the price of gasoline “95” by 1.8 lei. This way, diesel fuel now costs 18.45 lei/liter, as last October. Gasoline COR “95” is currently sold for 21.80 lei/liter, up almost 0.40 lei on last October, when fuel prices went up considerably, IPN reports.
At the start of September, a liter of gasoline “95” cost 20.23 lei. In mid-October, gasoline prices rose to 21.45 lei and remained at such a level in November as well. The price of diesel fuel grew from 16.42 lei at the start of September to 18.46 lei/liter in mid-October and to 18.52 lei/liter in a month. The price of liquefied petroleum gas in September-November increased from 12.07 lei to over 13.15 lei.
Later, the fuel prices declined gradually, to 20.04 lei per liter of gasoline “95” and to 17.12 lei per liter of diesel fuel in mid-December.
Electricity suppliers can wait until March for rates to be modified, official
Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development, said the electricity suppliers can wait until March for the power rates to be modified so as pass to the new power purchase. He made such a statement after “Premier Energy” recently asked the National Agency for Energy Regulation to raise the rate from 1.51 lei/kWh to 2.79 le /kWh, IPN reports.
Andrei Spînu told a news conference that he discussed the accumulating negative deviations with representatives of the company last month. “I must say that “Premier Energy” by December had positive deviations in the rate,” he stated, noting that the electricity suppliers should have waited until March, when the current contract for the supply of power expires, so as to later modify the rate based on the future purchase price.
Capacity to generate energy from renewable sources increased, EEA
The electricity generation capacities in Moldova led to the production of a volume of power that enabled to achieve the target of 3.04% of renewable energy in gross final energy consumption. The data show the situation in 2019. A year earlier, this indicator was 2.63%, while earlier, in 2010, it was 1.81%, IPN reports, quoting an infographic presented today by the Energy Efficiency Agency (EEA).
By the law on the promotion of the use of energy from renewable sources of 2016, it was set the objective of achieving a share of renewable energy of at least 17% of gross final energy consumption in 2020. According to statistics, this share in 2019 was 23.84%. In 2018, this indicator was 27.46%, while in 2017 – 27.84%.
● WEDNESDAY, January 12
Subsidies for establishing vineyards could be raised
In eight-ten years, the wine industry in the Republic of Moldova risks remaining without raw material. The areas sowed with unpopular types of grapes inherited from the Soviet period are the major problem. To change the situation, the authorities aim to increase the subsidies for planting new vineyards and for installing modern support networks in young vineyards, IPN reports.
In the discussions with authorities, grape processors expressed their readiness to annually plant 100 ha with varieties of grapes for making wine and to set up support, irrigation systems to mechanize the cultivation process. They are also willing to sign long-term contracts with those who want to plant vineyards in areas near localities where there are processing units, says a note of the Ministry of Agriculture and Food Industry.
Commission for Exceptional Situations considers new rise in gas rates
The public institutions will take measures to rationalize natural gas and electricity consumption in accordance with the recommendations of the Ministry of Infrastructure and Regional Development, while Moldovagaz will initiate discussions within the Supervisory Board on the possibility of extending the payment for gas until the end of this month, as the Commission for Exceptional Situations decided on January 12, IPN reports.
According to the Government’s press service, the Commission agreed that Moldovagaz will continue the negotiations with commercial banks for taking out a commercial loan, while the Ministry of Finance will examine the legal possibilities for postponing the payment of VAT to Moldovagaz for a short period so as to provide the company with the liquidity needed for current payments. The Ministry of Labor and Social Protection, together with the Ministry of Finance, will analyze the situation related to the rise in natural gas rates and the impact on consumers and will formulate proposals for improving the subsidization system.
●THURSDAY, January 13
Moldova's economy is expected to grow, World Bank
Moldova's economy is expected to grow by 3.9% in 2022, the World Bank said, increasing its previous forecast by 0.2 percentage points, IPN reports, quoting SeeNews.
The World Bank sees Moldova's economy growing by 6.8% in 2021, compared to a 3.8% forecast made earlier, it said in its January 2022 Global Economic Prospects report published on Tuesday.
In 2023 Moldova's gross domestic product (GDP) is expected to expand by 4.4%.
The sub-regional economy of Eastern Europe, which includes Moldova, Belarus and Ukraine, is projected to be the weakest among the Europe and Central Asia (ECA) subregions. The subdued outlook, particularly for private investment, reflects ongoing geopolitical tensions in Ukraine and the impact of economic sanctions on Belarus’s economy.
National Bank raises key rates by 2 points
The base rate charged by the National Bank of Moldova has been raised by 2 points to 8.5% per annum, as decided by its board in an extraordinary meeting.
Interest rates on overnight loans and deposits have also been increased by 2 points to 10.5% and 6.5%, respectively.
Additionally, reserve requirements for national and non-convertible currencies have been raised by 2 points as well, to 28% of the calculation base, while convertible currency reserve requirements remain unchanged.
According to the NBM, the measures aim to temper inflationary pressures and offset shocks on the economy so as to speed up its return to a state of equilibrium.
● FRIDAY, January 14
Vadim Ceban: Natural gas rates should be adjusted monthly
The president of the Administration Board of Moldovagaz confirmed the figures announced earlier by Deputy Prime Minister Andrei Spînu, who anticipated an eventual rise to 14.6-14.7 lei in the natural gas rate. Vadim Ceban said the rise in rates will be inevitable if the purchase price remains higher than US$600 per 1,000 cubic meters of gas. Moreover, he noted that the rates should be adjusted monthly given the permanent fluctuations in the purchase price of gas, IPN reports.
The chief of Moldovagaz said the company sustains losses in January as the purchase price is not covered by the rate. Representatives of Moldovagaz are negotiating the raising of a loan with commercial banks, but unsuccessfully for now.
Two digitization packages in aid of entrepreneurs
Two digitization packages that will assist entrepreneurs and not only are being designed and will be launched soon. One of them refers to electronic trading, while the other one will simplify the notarial procedures related to entrepreneurial activity, Deputy Prime Minister for Digitization Iurie Țurcanu said in a press club meeting, being quoted by IPN.
The official said the first package refers to the online environment and the provider-supplier relations. To implement the e-trading scenario, several key measures are needed, such as trading platforms, online payments, digital taxation and infrastructure. These provisions were included in the given package.
The second digitalization package will offer notaries access to administrative data resources and these will be asked to no longer insist on the presentation of information on paper.
Electronic identity could be kept on phone as application
Deputy Prime Minister for Digitization Iurie Țurcanu said they are working on a digital solution that will enable keeping the electronic identity on the mobile phone, in the form of an application, while the signature instruments will be in cloud. Most probably, the application will be free of charge, IPN reports.
In a press club meeting, Iurie Țurcanu said the digital solution is similar to that used in other countries that implemented cryptographic models, such as Estonia.
“We think it could be free for a period. We will yet decide if it costs 1 leu, 10 lei a month or is free. I cannot say now that it will be absolutely free,” stated the Deputy Prime Minister for Digitization.
● SATURDAY, January 15
Carriers will be able to raise fares with consent of local councils
Transport operators will be able to set higher tariffs for road passenger transportation services with the approval of the local public authorities, as a bill proposed by the Ministry of Infrastructure and Regional Development for public debates says.
This way, the tariffs for regular inter-district and district services for comfort categories I and II could be raised up to 0.70 lei/km or up to 1 leu/km. The general tariff for comfort category I will be 0.70lei/km, while for comfort category II will be 0.60 lei/km.
The new calculations were done following discussions held with representatives of carriers and of local public authorities and as a result of multiple approaches made by citizens concerning the ensuring of people’s access to transport services in rural areas, says the informative note to the bill.
