Termoelectrica enterprise requests increase by 6 per cent in tariffs for heat

Chisinau, 8 March /MOLDPRES/- Termoelectrica Stock Company requests to increase by 6 per cent tariffs for heat supplied to consumers. An application on tariff adjustment was submitted by the enterprise on 7 March at the National Energy Regulatory Agency (ANRE).

Termoelectrica argues the request for increasing tariff from 1068.22 up to 1132.20 lei per Gcal through technical indicators included in the plan of production for this year, the updated forecast of macroeconomic indicators for 2017-2019, indices of retail prices, dollar exchange and increase in electricity rates requested by Gas Natural Fenosa.

The document published by ANRE shows that the greatest impact on growth of rates is on delivery service, the cost of which grew by about 30 per cent, from 201 lei to 260.64 lei per Gcal.

Termoelectrica asked the energy regulator to increase tariff for electricity by 12.3 per cent and rates for heat delivered to consumers by 27.4 per cent. The request was motivated by significant rise in cost of production and supply of electric and thermal energy after the last tariff adjustment in October 2011.

Energy expert Victor Parlicov said that if in autumn tariffs for electricity had been adjusted and heat tariff increase would be relatively higher, there would not be no application submitted on 7 March. “Prices are not something that you can postpone indefinitely, if they are not adjusted today, tomorrow will be higher”, he said.

He said that in fact, ANRE would have to “repair the mistake it made last autumn”. Parlicov also added that after reorganization of CETs and Termocom by merging into a single company, significant optimizations have been made, so that further cuts cannot be done to keep the tariff.

Adjustment of tariffs on utility services based on costs is a commitment seen in an agreement signed with International Monetary Fund. Because of the delay in tariff adjustment that would cover justified costs of energy enterprises, they have large debts to Moldovagaz. On 1 November 2016, Termoelectrica had a debt of 2 billion 563 million lei to Moldovagaz.

Termoelectrica director Veaceslav Eni announced in September 2016 that the enterprise is negotiating with Moldovagaz and World Bank to sign an agreement which will reduce tariffs and costs in the coming years. “We have a historical debt of 2.6 billion lei. We have perfected this debt in memorandum for rescheduling this amount during 15 years. We made a business plan for 35 years to pay all debts. But the WB’s condition is not to accumulate debts to Moldovagaz and to adjust tariffs”, he said.

ANRE announced for 9 March 2017 public hearings on adjustment of rates for distributing and supplying electricity. Applications were submitted by distributors RED Nord, RED Nord-Vest, RED Union Fenosa and providers Gaz Natural Fenosa and electricity delivery Nord.

 (Reporter V. Bercu, editor A. Răileanu)