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Decrease in gas prices is natural in current market situation, expert


https://www.ipn.md/index.php/en/decrease-in-gas-prices-is-natural-in-current-market-situation-7966_1069747.html

Energy expert Sergiu Tofilat believes that the decrease in the import prices of natural gas, announced by the authorities upon the return from the Russian Federation, is natural in the current market environment. In his opinion, all that the Moldovan authorities have done is that they discussed the extension of the contract with "Gazprom" to ensure the reliable supply of natural gas.

"President Igor Dodon was keen on speculating about the issue of lowering gas prices. We need to understand how this happens and how the price is formed for the Republic of Moldova. It is set quarterly, meaning that every three months it changes, depending on the gas price on the EU market a year ago. Respectively, if in the European Union the gas price has dropped significantly this year, for us, the decrease will start after the New Year. Now this decrease is not due to Mr. Dodon's relation with the Russian Federation either, but to the market situation,” Sergiu Tofilat told IPN.

Upon his return from the Russian Federation, Prime Minister Ion Chicu said that an agreement was reached in Moscow on the significant decrease in gas prices delivered to the Republic of Moldova from January 1, 2020. Specifically, after January 1, 2020, the price will be reduced by $ 50 and will constitute around $ 172-173 for one thousand cubic meters.

At "Gazprom" it has been also discussed that the implementation of the Third Energy Package and the Law on natural gas, brought in line with the European directive, is conditioned by the European energy community on settling the debts for natural gas and regulating the ownership of assets, that is, the overall assets and property of "Moldovagaz" SA.

Sergiu Tofilat is of the opinion that, without solving the debt problem, we cannot go on. The expert mentions that this concerns the market demonopolization, the breakdown of commercial activities and the maintenance of the infrastructure. "In other words, if one wants to sell gas, please, he/she may set up a company, sign contracts, look for suppliers, etc. But the infrastructure is entrusted to a single operator, who is obliged to provide this infrastructure to all users, according to a tariff established by the regulatory authority. This is the mechanism of operation in the monopoly sectors, the concept approved by the EU to create competition in a monopolistic market”, explains Sergiu Tofilat.

According to the expert, the Republic of Moldova has assumed this model. However, currently "Moldovagaz" is responsible for both networks of gas transport and distribution. "They bring the gas into the country and they also sell it to consumers. The activity must be divided into the commercial service and the service in charge of infrastructure. And here the question arises: how is the existing debt divided, who takes it over?” stressed the expert.

In his opinion, it is necessary to stop the accumulation of debts and it must be clarified which is the debt of the Republic of Moldova, because the reported figures are those of the "Moldovagaz" accounting. As for the debt of the left bank of the Dniester, "Gazprom" should assume it, believes Sergiu Tofilat. Also, in his opinion, there is a need for an investigation of "Moldovagaz" activity for the last 20 years.

Sergiu Tofilat says that at present there is no visible willingness on the part of authorities to implement the Third Energy Package. Or, the actions should have been carried out by December 31, 2019. "First and foremost, it is a matter of political will, or the lack of it. "Moldovagaz" has been a source of corruption for the governments in the last 20 years. But in the event that tomorrow a government with good intentions comes, we must, first of all, identify alternative sources from which we could buy gas,” mentioned the expert.

During the discussions at "Gazprom", it has been mentioned that the gas debt of the right bank of the Dniester constitutes 443 million dollars, while that of the left bank is of 6.2 billion dollars.