State to intervene to help citizens, if natural gas prices rise; Moldovan parliament speaker says government to come up with solutions, state cannot leave people facing price hikes

Parliament Speaker Igor Grosu has said that the state would intervene to support citizens in the event of higher natural gas tariffs, emphasizing that the government was preparing new compensation mechanisms for the cold season. At the same time, the parliament speaker noted that the gas price is determined both by developments on international markets and by domestic transport and administrative costs, where the authorities can intervene.

In an exclusive interview with the MOLDPRES State Information Agency, Igor Grosu specified that the first component of the tariff is the purchase price on international exchanges, influenced by global quotations and geopolitical developments, including the war in Ukraine and tensions in the Strait of Hormuz and the Black Sea.

“Moldova does not have its own resources. Everything we consume – gas, diesel, gasoline, liquefied gas – we import. Here we depend on international quotations. Obviously, we have done everything possible to diversify our sources, so as not to depend on a single source, as we did until 2021, on the Russian Federation. And then, even if you had a contract, at any time – and that moment was usually in winter, when you most need energy resources – they would gradually reduce deliveries and give you no explanation – a dependency and a geopolitical weapon against those who are not obedient to them,” Grosu said.

Igor Grosu pointed out that the second component of the tariff is distribution and administrative costs, and they can be optimized through domestic decisions. At the plenary meeting on July 30, the parliament adopted, in the second reading, a law stipulating that, if two or more natural gas distribution system operators belong to the same founder, their administrative expenses will be recognized in the tariff only once, for one of the operators, and not separately for each. The measure aims to prevent the same administrative costs from being included multiple times in the uniform tariff, thereby avoiding double charging of consumers.

“Moldovagaz, beyond the excessive salaries – the director, 377–378 thousand in April, for example, or the members of the Board of Directors or advisers – around 90 thousand, I say this is excessive for Moldova. And this is not only the case of Moldovagaz; there are other institutions, and we will see what the State Chancellery will provide us. Twelve enterprises across the entire territory, 12 directors, 12 accountants, 12 deputy directors and so on. I believe a single enterprise would cope under current conditions. (...) This is where we can intervene to reduce administrative costs, which can have an impact on the tariff, in the sense of reducing it, that’s what I mean,” Igor Grosu said.

Referring to possible tariff increases, Igor Grosu assured that the cabinet would introduce support measures for the population.

“My answer is yes, obviously, the state will intervene and will help citizens. Just as we have done in previous years, in the cold season, over those five months, the government will come up with solutions, with proposals to compensate part of these costs. Obviously, we cannot leave people facing these price hikes and we are talking about the months of November–December of the current year and three months – January, February, March – of the next year. So, we will come, the government will come, the Labour and Social Protection Ministry will come with proposals, we will discuss them. We will see whether we improve and what we improve in the compensation process,” Igor Grosu said.

At the same time, Igor Grosu called for the responsible use of energy resources, both in public institutions and households. He recalled that the latest decision of the Commission for Crisis Management provides for a 20-per cent reduction in fuel expenditures in public institutions, in the context of the current economic and energy situation.