Moldova to compensate 50% of electricity tariff increases
The government will compensate 50% of the increase in electricity tariffs for domestic producers in the food and manufacturing sectors, as opposed to previous provisions which capped the compensation at "up to 50%."
This change was introduced by the Commission for Exceptional Situations (CSE).
Additionally, under the new regulations, businesses that purchase electricity from wholesale consumers or operate within a closed distribution system will be eligible for compensation. The condition is that electricity expenses in 2024 must make up at least 3% of their revenue.
Expert Stas Madan believes that the new eligibility criteria make potential beneficiaries "more specific." According to him, the introduction of the 3% minimum consumption condition helps identify the most vulnerable producers who need more support.
Economy Minister Dumitru Alaiba clarified in a social media post that compensation will only be granted for spaces used exclusively for production. In cases where separate tracking of consumption is not possible, compensation requests will be submitted based on the single invoice.
Applications for compensation will be accepted starting February 3rd through a dedicated section on the government portal MCabinet/EVO. Minister Dumitru Alaiba assured that the application process will be simple and quick, requiring no more than 5 minutes to complete.
It is worth mentioning that, starting January 10th, consumers in the Republic of Moldova are paying higher electricity bills. Citizens in the central and southern regions of the country pay 4.1 lei/kWh, which is 75% higher than the previous tariff, while consumers in the northern region pay 4.68 lei/kWh, an increase of approximately 64%.
The increases were approved by ANRE following the shutdown of the Cuciurgan Power Plant, which had supplied most of Moldova’s energy, and no longer provides electricity to the right bank of the Dniester River since January 1st. Currently, the deficit is being covered, according to daily data presented by the Ministry of Energy, through local production and other external sources.
Translation by Iurie Tataru
