Moldova’s EU-backed energy compensation plan explained
Authorities in the Republic of Moldova are working on creating a mechanism, which will be announced soon, to ensure that every household receives compensation for electricity, with the support of the European Union.
This statement was made during the "IN CONTEXT" program by Radu Marian, President of the Parliament's Economy Committee, who believes that limiting compensation for energy consumption will encourage consumers to save.
"Compensation will be provided to all households for their electricity consumption. For the first 110 kilowatt-hours, the pre-increase tariff will remain in effect until the end of 2025. 80% of households in the Republic of Moldova consume up to 150 kilowatt-hours a month. To encourage people to use electricity more efficiently and save, we have set the limit at 110 kilowatt-hours, as this covers the consumption of the vast majority of households."
The official also discussed the conditions that will apply to the provision of free gas, including tariff adjustments, respect for human rights, and democratic values. "This is a crucial condition. We support the Transnistrian region, but we must not discriminate against citizens on the right bank, who pay taxes and bills, covering these expenses. They will need to implement a rapid plan, ensuring that both the population and businesses pay as the rest of the Republic of Moldova does. Otherwise, the region would not be economically sustainable because a large part of its budget was generated by payments made by the right bank."
Former Deputy Prime Minister for Reintegration, Alexandru Flenchea, noted that a strategy is needed not only to solve the energy crisis but also to address the country’s reintegration challenges. "The good thing is that both in Chișinău and Brussels, it has been understood that the support provided to the region cannot be directed towards maintaining this regime. Support must come with political changes. The biggest issue I see is the conditionality, which, although necessary, lacks any certainty or assurance of being implemented. Furthermore, Transnistria’s interest is zero. Another problem in the region involves large companies, enterprises that do not have access to energy resources, and thousands of employees who will not be able to pay the adjusted tariffs. We risk facing another humanitarian crisis in the region."
It is worth noting that the European Commission and the Republic of Moldova have agreed on a comprehensive two-year strategy for energy independence and enhanced resilience. As part of this plan, Chișinău will benefit from a new financial package worth 250 million euros. Additionally, the European Union has proposed allocating 60 million euros for the Transnistrian region to cover its energy needs. However, certain conditions will be attached to the funding.
Translation by Iurie Tataru
