Moldova energy subsidies: Public outcry and government response
The public outcry on social media underscores widespread dissatisfaction with this winter's energy subsidies, extending beyond mere calculations.
The public outcry on social media underscores widespread dissatisfaction with this winter's energy subsidies, extending beyond mere calculations.
Tariffs and Bills Comparison - 2023 vs. 2024
| 2023 | 2024 | |
|---|---|---|
| Tariff | 18.07 MDL/m³ | 13.12 MDL/m³ |
| Consumption | 150 m³ | 150 m³ |
| Bill without Subsidies | 2,710 MDL | 1,968 MDL |
| Subsidies | 856 MDL | 300 MDL |
| Final Bill | 1,854 MDL | 1,668 MDL (186 MDL less than last year) |
Many citizens, particularly those with limited incomes or vulnerable family members, perceive the financial support as insufficient. However, authorities maintain a different perspective: "We've consistently stated that subsidized citizens won't incur higher costs this year compared to the previous year. That's precisely our current achievement," declared Alexei Buzu, Minister of Labor and Social Protection.
Meanwhile, experts acknowledge the temporary utility of the compensation mechanism but warn of its complexity, which many citizens find challenging to comprehend.
Official figures indicate a significant drop in natural gas prices, from 18.07 lei/m³ in November 2023 to 13.12 lei/m³ in November 2024. Consequently, unsubsidized bills for a 150 m³ consumption now amount to 1,968 lei, compared to 2,710 lei last year. Despite a reduction in subsidies from 856 lei to 300 lei, the final 2024 bill remains lower at 1,668 lei, a 186 lei decrease.
Thermal Energy Compensations
Comparative Explanation 2023-2024
| December 2023 | November 2024 | |
|---|---|---|
| Tariff in effect | 3,267 MDL/Gcal | 1,824 MDL/Gcal |
| Consumption | 0.86 | 0.86 |
| Bill without Subsidies | 2,835 MDL | 1,568 MDL |
| Subsidies | 1,555 MDL | 380 MDL |
| Final Bill | 1,280 MDL | 1,188 MDL (-90 MDL compared to last year) |
A concrete example illustrates that households utilizing thermal energy won't face increased costs this winter compared to the previous year, even with reduced subsidies. The November 2024 tariff of 1,824 lei/Gcal is notably lower than the 3,267 lei/Gcal rate from 2023.
Thus, for an average consumption of 0.86 Gcal, the unsubsidized bill would reach 1,568 lei this year, compared to 2,835 lei in 2023. After applying subsidies, the final bill drops to 1,188 lei in 2024, a 90 lei decrease from the previous season.
The government reassures citizens that it will offset any future energy tariff increases, ensuring households don't pay more post-subsidy than in the previous winter.
"The government remains committed to supporting its citizens this year, and we will successfully navigate this winter. Thank you once again for your patience and understanding! We're dedicated to addressing all your inquiries promptly," stated Alexei Buzu, Minister of Labor and Social Protection.
Expert: The compensation mechanism, while beneficial, is overly complex for many citizens.
IPRE expert Stanislav Ghilețchi explained that the compensation mechanism is a rapid and efficient solution to support those most impacted by price fluctuations. "As a temporary measure, a compensation mechanism is appropriate, given recent price volatility. However, the current mechanism's complexity hinders citizen comprehension. Recent public discontent regarding compensation amounts and unmet expectations highlights this issue. Many citizens are perplexed by the calculation method and its outcomes," Ghilețchi noted.
Translation by Iurie Tataru
