ANALYTICAL NOTE: The lack of transparency in approving new tariffs for electricity and natural gas

8 September 2015

The Institute for European Politics and Reforms (IEPR) believes that ANRE has violated the law on public consultations organization, and this constitutes grounds for annulment of the decisions to increase tariffs for electricity and natural gas.

According to an analysis, conducted by an IEPR expert, Sergiu Tofilat, new tariffs were approved in violation of several legal provisions on transparency in decision making, and ANRE should organize debates repeatedly.

Under the law, the Agency should have published draft decisions, briefing notes and other materials, under which the decisions on tariffs increase have been developed. The analysis contains notes on the fact that ANRE voted other values ​​for gas tariffs in public session on July 18, compared to those published in the Official Gazette, which are higher.

The author of the analytical note also states that operators can ignore the recommendations of the Agency regarding the audit, because the Agency is empowered under the law to carry out inspections on license holders. Sergiu Tofilat believes that ANRE must select a specialized company that would carry out the audit of all operators throughout the period of their activity, with the participation of civil society representatives.

According to IEPR moderator, tariffs are set incorrectly, because many state institutions, not only ANRE, do not exercise their functions conscientiously.

“The Parliament has amended the Law on natural gas in August, 2014. Thus, all costs of gas transportation, which the Republic of Moldova transits, were attributed to consumers. Citizens are forced to pay additional 320 million lei every year,” states the Analytical note of IEPR.

According to the report, the Ministry of Economy should expedite the connection to the power system of Romania, from which we can import cheaper electricity by over 40% compared to the current price, offered by the Cuciurgan power station.

“Likewise, the Government should develop a compensation mechanism for socially vulnerable population to ensure their access to basic conveniences,” shows the IEPR analysis.

However, IEPR has realized a graphic video, which explains people, how electricity prices are formed and why we are paying more. The video is a continuation of the series of videos, made ​​by the Institute, to tell people in simple words what happens in the most complex areas.

The video and the analytical note within the IEPR project on policymaking together with citizens, which is supported by the European Endowment for Democracy, based in Brussels.

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