Tariffs for electricity should be higher by 20% at least – experts

Moldova will have no choice but to comply with the price increase requested by Ukraine for the supplied power, economic analyst Veaceslav Ionita considers. The expert of IDIS “Viitorul” believes that the increase imposed by the neighbouring country is not a surprise, being predicted by several analysts at the end of the last year. At the same time, Ionita excludes the existence of political pressure on Chisinau, explaining that these are only economic relations. “The problems related to the energy security of Moldova are the result of the authorities’ inactivity for at least 7 years. The power supplied for 2.7 cents was offered for a ‘grace period’, a period which we should have used to attract investments from outside. About USD 1 bln are deeded to invest in the power generation capacity, which equals the total investments that Moldova makes in three years”, Ionita says. According to the cited source, the Moldovan state is abusively interfering with the electricity pricing policy. In real terms, the present tariffs should be by at least 20% higher, without the increases requested by Ukraine. “Expenses for distribution are higher, while the tariffs for power remained unchanged, even if the salaries grew”, Ionita says. In his words, people should understand that it is not normal that the price of telephone calls is much higher than that of power. “It is not normal to pay MDL 600-700 for the telephone services, and to refuse to pay more than MDL 0.75 for one kWh. The prices had to grow gradually. The most hard would be a spontaneous increase, but we have nothing to do in this situation”, the expert said. Moldova will have to come to an agreement with Ukraine in what concerns the increase in the price of power; otherwise the neighbouring country could cease supplies to Moldova. It covers about 2/3 of the internal consumption. Ukraine insists on a tariff of USD 0.031, instead of USD 0.027 at present.