Moldova Changes Energy Aid: Cash Payments Now
Despite the extended timeframe before the next winter season, authorities in Moldova have already pledged to continue providing compensation for energy costs. However, the method of compensation will shift from direct bill reduction to cash payments.
This change was outlined by Alexei Buzu, the Minister of Labor and Social Protection, during an interview with Moldova 1. The exact form of the compensation will remain contingent on energy prices and the government's financial resources.
"Should energy prices remain elevated, the government will seek solutions to support its citizens. I am hopeful that we will observe positive trends if the cost of energy goes down. However, if a compensation system remains necessary, it will prioritise cash payments to provide citizens with greater flexibility," stated Buzu.
The minister emphasised that this approach aligns with successful practices observed in other countries.
"Our analysis of practices in other countries demonstrates that this approach offers citizens increased simplicity and flexibility. We are committed to providing this flexibility to our own citizens," added the Minister of Labor and Social Protection.
During the 2023-2024 cold season, Moldova offered two forms of compensation: direct reductions on natural gas, heat, and electricity bills, as well as cash payments of 800 lei for households using wood, coal, or other solid fuels for heating. These compensations were made possible through the Energy Vulnerability Reduction Fund, supported by the state budget along with contributions from the European Union, the United States of America, and other development partners. The European Union's financial contribution to this fund, provided through direct budget support, totaled nearly 1.5 billion lei.
Translation by Iurie Tataru
