Moldovan government announces targeted aid after gas price hike
The government is considering targeted support measures for businesses following a more than three-lei increase (0,18 euro) in natural gas tariffs, according to Prime Minister Dorin Recean.
Only the most affected companies might qualify for compensation, while others can access subsidies to improve energy efficiency.
“The government’s policy is to provide additional compensation for households and subsidies for businesses to enhance energy efficiency, aiming to reduce bills rather than tariffs. This approach will help businesses remain competitive in the long term. If certain sectors become immediately uncompetitive, the government will assess the situation and focus on those at risk of losing competitiveness,” Recean explained.
The National Confederation of Employers of the Republic of Moldova (CNPM) warns of the immediate adverse impact on production costs caused by the tariff hike. CNPM President Leonid Cerescu highlighted that businesses without gas reserves would be the hardest hit.
“The tariff increase will directly raise production costs, reducing the competitiveness of businesses in the market. Those without reserved or pre-purchased gas will need to take measures to cut other expenses, making their finished products more competitive,” Cerescu stated.
In this context, Cerescu acknowledged that government subsidies for green energy are welcome and beneficial, though insufficient. “It’s better than nothing—it’s support that helps reduce costs—but it’s not enough to keep economic activity afloat.”
Starting December 1, final consumers will pay an additional 3.3 lei (0,17 euro) per cubic meter of natural gas. This increase was approved at the November 29 ANRE meeting. Authorities have promised increased energy compensations for households, however the mechanism has not yet been disclosed.
Translation by Iurie Tataru
