A new rise in electricity prices might occur in November-December, Veaceslav Ionita stated.
According to the analytical material of the economic expert, published on his website, over the past 8 years the average monthly consumption of electricity grossly amounted to 368 million kWh, of which 21.8% was covered by local production, and the rest was purchased either in Transnistria or in Ukraine. In general, the difference between summer and winter electricity consumption is 25-30%. However, if we consider electricity consumption only by local production, in summer months Moldova generates 15-30 million kWh of electric power per month, and during the heating season the production increases 10 times, up to 150-160 million kWh. During the summer months, local production covers only 5-10% of demand, while during the winter months, local electric power production may cover 30-40% of demand. The price of local electricity is currently 4.33 lei per 1 kWh - and this is the highest price. For example, electricity from Transnistria is purchased at 1.22 lei per 1 kWh, which is 3.5 times cheaper than local energy. Another source of cheap energy was Ukraine - 1.5 lei per 1 kWh. However, due to military actions in Ukraine, Moldova was deprived of this source of energy. Under these conditions, the Romanian government decided as a matter of priority to offer Moldova at least 70 million kWh of electricity at a fixed price in a record-breaking 24 hours. This aid by Romania, as the expert notes, closes the gap created by impossibility to import electric energy from Ukraine - about 25-30% of our import in November-December. It is worth mentioning that Moldova receives electric power from Romania at a subsidized price, much lower than the market one. The support offered by the Romanian government amounts to 7 million euros per month and at least 35 million euros over the next 5 months. Veaceslav Ionita also draws attention to the fact that Romania is presently considering an increase in support for Moldova by 60%, which would cover 40% of the need for imported electric energy. Thus, at present Moldova is able to cover the necessary average consumption of electricity, but not the consumption during peak hours. The consumption of electricity during peak hours (morning and evening) is much higher, and Moldova faces a deficit which it can cover, according to Veaceslav Ionita, either through additional contracts at a price of at least 3.5 lei per kWh, or through emergency purchases without a contract, where the price can reach 6.67 lei per kWh, as it was in recent days. The expert notes that undoubtedly the average purchase price of electricity in November-December will be much higher, which will put enormous pressure on the energy sector, and there are likely to be new price increases. If the consumption management in this crisis period is faultless, then in Moldova in November-December the average purchase price of electric energy may amount to 2.6 lei per 1 kWh, although it is 2.6 times more expensive than the average price in the last 5 years. The high consumption during peak hours creates a huge pressure on the purchase price. Veaceslav Ionita emphasizes that there is a choice: reduce consumption during peak hours or pay a higher price for the pleasure of consuming electricity without restrictions. // 31.10.2022 – InfoMarket
