New gas tariffs were not approved in Moldova retroactively, from January 1, since the retroactive application of some decisions contradicts the law - NAER.
The National Agency for Energy Regulation stated this when commenting on some statements that appeared in the media regarding the establishment of regulated prices for natural gas. NAER emphasized that regulated prices for natural gas supplies are set annually. This means that any change also affects prices in the months leading up to the change. NAER calculates for the period before approval, starting from January 1, the component of adjustments to the supplier’s regulated income (“tariff deviations”) and includes them in the calculation of regulated prices for approval (“negative deviations”, in conditions of price increases, or “positive deviations”, in conditions of decline). The energy regulator clarified that when approving the new gas price for household consumers on February 21, NAER calculated the supply price at 14,677 lei per 1 thousand cubic meters compared to the current price of 16,730 lei per 1 thousand cubic meters, which means a decrease of 2053 lei (-12%). Applying the adjustment coefficient of regulated income for the previous period (January 1 - date of approval), NAER calculated the difference between the actual price paid by consumers and the estimated price (positive deviations) and included it in the approved prices until the end of the year. Thus, the final price approved by the agency is 13,398 lei per 1 thousand cubic meters, which is 3332 lei (19.9%) lower than the price valid until the moment of approval, and 1279 lei (8.7%) lower than the calculated one, up to the inclusion of the corrective component. As noted by NAER, thus, from a technical point of view, consumers are compensated for the difference from the prices actually paid since the beginning of the year. All calculations are publicly available and are displayed on the agency’s website in the section “Transparency in decision making/Projects subject to approval.” NAER also clarified why gas prices for 2024 were approved in February. The energy regulator noted that in accordance with the Regulations on the procedure for submitting and considering requests for regulated prices and tariffs, license holders in the field of natural gas and electricity submit for consideration to the Agency a request for approval of prices and/or tariffs, in accordance with the provisions of the current methodology, annually, by February 1 (when all final financial information for the previous year becomes available). Thus, the Moldovagaz company submitted a request for approval of prices on January 26. In addition to the request for approval of regulated natural gas prices, the agency also received and reviewed requests for approval of rates for 12 natural gas distribution system operators. After processing the information provided by operators and suppliers in the natural gas sector, a thorough analysis of all submitted data was required and it was re-validated through a labor-intensive process. NAER also drew attention to the fact that, as a rule, gas prices decrease during the warm season and increase during the cold season. The energy regulator clarified that regulated prices for natural gas supplies are annual. They are approved on the basis of a forecast of the annual weighted average purchase price of natural gas by the supplier with the obligation to provide utilities. According to current regulations, when the conditions for adjustment are met, the supplier submits a corresponding request. The main reason for the need for adjustment lies in the fluctuation of purchase prices for natural gas at sources. Normal international price dynamics tend to intensify during the cold season when there is higher consumption and demand, so adjustments may coincide with seasonality, but this is not necessarily the rule.// 21.02.2024 — InfoMarket.
