ANRE approves the regulated tariffs for the natural gas transmission service provided by Vestmoldtransgaz

ANRE approves the regulated tariffs for the natural gas transmission service provided by Vestmoldtransgaz

On August 23, 2024, the Administration Council of the National Agency for Energy Regulation (ANRE) approved the regulated entry and exit tariffs for the natural gas transmission service provided by Vestmoldtransgaz as follows:

• For the entry points group - into the natural gas transmission network from interconnections with the transmission networks of neighbouring countries: 323.7 MDL/1000 m³;
• For the exit points group - from the natural gas transmission network to the interconnected transmission networks of neighbouring countries: 374.3 MDL/1000 m³;
• For the exit points group - from the natural gas transmission network to the natural gas distribution networks and to the natural gas installations of final consumers connected to the transmission network: 311.1 MDL/1000 m³.

The factors that prompted the tariff adjustment include: a 30% reduction in the volumes of gas transported (from 1.8 billion m³ in 2023 to 1.3 billion m3); the application and update of the basic expenses of the TSO Vestmoldtransgaz with macroeconomic indicators (modified by ANRE Decision No. 93 of February 23, 2024); the update of the values of the Lease Contract and the Maintenance Contract for the natural gas networks; the need to recover the tariff deficit accumulated during previous regulatory periods.

Additionally, ANRE has approved the Report on the implementation of provisional balancing measures by Vestmoldtransgaz, valid until December 12, 2025. The report provides the application of "tolerance" and "provisional imbalance payment" as provisional balancing measures, which will allow the TSO to continue using a provisional balancing mechanism.

When approving the Report, ANRE took into account the gradual development of the balancing regime. These steps are part of the latest market developments that promote higher competition and regional market integration. The proposed measures will ensure a smooth transition to a market model that is correlated with the balancing mechanisms provided by the Gas Networks Code and the Gas Market Rules.

ANRE has also approved the Regulation on Imposing Public Service Obligations on natural gas suppliers. The regulation will be applied by natural gas suppliers who express their interest and participate in the selection procedure of the public service supplier (to supply gas to certain types of consumers and ensure the last-resort supply) organised by ANRE.

The objectives of the draft Regulation are the following:

• Establish the eligibility criteria and a competitive selection of public service suppliers;
• Select the suppliers on the basis of a competitive procedure, impose public service obligations for the supply of natural gas, including certain types of consumers, ensure the supply of last resort;
• Encourage the participation of as many suppliers as possible in the selection procedures organised by ANRE.

The recovery of costs related to regulated natural gas supply for public service providers will be guaranteed, based on the prices approved by ANRE.

The decisions will take effect upon publication in the Official Gazette of the Republic of Moldova.

During this meeting, ANRE has also issued the Notice on tariffs for public water supply, sewerage, and wastewater treatment services provided by Î.M. "Apă-Canal Cantemir" (public water supply service – 23.05 MDL/m³; public sewerage service – 26.66 MDL/m³, and the) and the tariff for public water supply services provided by Î.M. "AQUA Basarabeasca" (29.55 MDL/m³).