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NAER called the information on gas prices disseminated by some persons erroneous and made a number of clarifications in this regard.

NAER called the information on gas prices disseminated by some persons erroneous and made a number of clarifications in this regard.

In particular, the National Agency for Energy Regulation reacted to the appearance in the public space of statements on some aspects related to the method of calculating the components of the structure of regulated prices for natural gas, approved on June 7, and requests for approval of tariffs for the provision of natural gas distribution services. Regarding the method of calculating the components of the regulated price structure for natural gas, NAER noted that regulated prices for the supply of natural gas are approved at the level of the annual regulation period (calendar year). The supplier's total expenses for the purchase of natural gas distribution services, which are provided at regulated prices, are determined in accordance with the current methodological bases based on the tariff for the natural gas distribution service provided by the distribution system operator in the year of regulation. Thus, the agency considered as an objective factor the adjusted amount of costs for the distribution of natural gas at the level of 2023 calendar year, based on both the current tariffs and the tariffs to be approved and applied in the second half of 2023, in order to avoid the accumulation of negative financial deviations. NAER notes that through its actions it creates conditions for the gradual opening of the natural gas market so that both operators and consumers can benefit from transparent, fair and non-discriminatory tariffs and prices. At the same time, the agency's actions are fully consistent with the current legislative framework and methodologies. Regarding requests for approval of tariffs for the provision of natural gas distribution services, the agency clarifies that, in accordance with the provisions of European directives, Moldovan legislation has been harmonized, especially in terms of the liberalization of energy markets. Thus, in accordance with the Regulations on the organization and activities of NAER, approved by Parliament Resolution No. 334/2018, one of the main functions of the agency is to promote a fair and adequate tariff policy that complies with the principles of a market economy, in such a way that consumer rights are equally protected and enterprises from industries regulated by the agency. Currently, there are 20 natural gas distribution license holders registered in Moldova, 12 of which are affiliated companies of Moldovagaz. Thus, in accordance with the provisions of the current legislation, NAER approves tariffs for natural gas distribution services separately for each gas company. In May, 12 operators associated with Moldovagaz submitted requests to NAER for the approval of tariffs for the provision of natural gas distribution services for 2023, which are public (published on the agency’s website in the section “Transparency of decisions / Projects subject to public consultations” ). NAER notes that tariffs for natural gas distribution services are set on the basis of costs strictly necessary for the conduct of activities, excluding from the calculation all economically unjustified costs and expenses and / or which, according to the technological process, are not necessary for the provision of natural gas distribution services. According to the NAER, the difference between the tariffs requested by the operators is due to the different architecture of the served distribution networks, as well as financial and technical indicators that differ for different operators and take into account a number of aspects: the length of the network, the volumes of distributed natural gas, the level of losses and technological consumption, and etc. In the near future, NAER will complete the analysis of submitted applications and consider the relevant issue at an open meeting. Given the above, the agency asks people who address this topic not to use the information and figures that the agency operates for interpretive purposes, and also not to mislead public opinion by gaining political capital. NAER reminded that it is an independent public institution that strictly observes the current legal framework and will not enter into political debates. // 08.06.2023 — InfoMarket

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