Moldova government considers privatising RED Nord and FEE Nord
The government of Moldova is considering privatising two electricity distribution companies, RED Nord and FEE Nord. Several companies have expressed interest in the privatisation, including Premier Energy and strategic investors from Romania.
Energy Minister Victor Parlicov said that the government is looking for a diversified portfolio of investors and wants to strengthen the strategic collaboration with Romania. A final formula for the privatisation has not yet been decided, but the government is considering signing an international agreement.
RED Nord is a joint stock company that was created in 1997. It serves about 500,000 consumers in the northern districts of Moldova and provides distribution of 30 percent of the country's electricity.
FEE Nord was founded in 2015 to implement the Energy Package 3. It is responsible for liberalising the market and separating the distribution operator from the electricity supply operator.
Energy expert Sergiu Tofilat said that the state is not always the best administrator and that the authorities need to ensure that the two enterprises are managed efficiently.
