Moldovan energy market regulator opposes introducing external management at Moldovagaz
CHISINAU. Nov 25 (Interfax) - The Moldovan National Agency for Energy Regulation (ANRE) has spoken out against changing national legislation in order to introduce external management of the Russian-Moldovan company Moldovagaz.
"The ANRE has reviewed a draft law proposing the introduction of a mechanism to appoint temporary management for energy enterprises. ANRE emphasizes that the current legislation provides adequate solutions to ensure the continuity of operations at Moldovagaz, including natural gas procurement. During this transitional period, Moldovagaz has continued purchasing gas in compliance with existing laws without operational difficulties," ANRE said in a statement published on its website on Monday.
ANRE issued a negative opinion on the draft law regarding external management, saying that the proposal is "unjustified and violates European Union directives." Such a change would be unprecedented not only for Moldova but also for the European market, it said.
"Any deviations from existing norms must be clearly substantiated and well-argued. Furthermore, granting ANRE the authority to appoint temporary management for regulated enterprises would create a conflict of interest, jeopardizing the agency's position as an impartial arbitrator," ANRE said. The agency will not comment on political statements, it said.
The terms of all nine Moldovagaz board members expired on June 25. A temporary composition for its board was in place from June 25 to September 25. A new board was expected to be approved on September 25, but representatives of Gazprom , which controls five of the nine seats on the Moldovagaz Supervisory Board, did not support the candidates proposed by the Moldovan Energy Ministry following a competition. Long-time Moldovagaz head Vadim Ceban continues to lead the company as acting chairman of the board. Other board positions remain vacant.
The proposed board candidates can only be approved after they are presented to Gazprom, Ceban previously said. The issue of appointing the new Moldovagaz board could be resolved by the end of 2024, he said.
Sergiu Tofilat, a member of the Moldovagaz Supervisory Board, proposed amending legislation to allow for the appointment of temporary management and external administration if necessary on social media on November 22. Justifying his proposal, he said that Moldovagaz has been "without leadership for two months, raising the risk that the company may be unable to procure gas." Tofilat compared the situation to the banking sector, where external management is introduced when banks face certain governance issues. Such amendments to legislation would ensure that Moldovagaz's operating activities, including gas purchases, could not be blocked, he said.
Moldovagaz's board is a collegial executive body comprising nine members appointed at the suggestion of its major shareholders for a three-year term. The Moldovan Energy Ministry selected its candidates for the new board through an open competition for the first time. In particular, Dorin Junghietu has been proposed as the board's new chairman. He has previously worked abroad, including in major international companies.
The approval of Moldovagaz's new board will be among the topics discussed during a Moldovan delegation's scheduled negotiations with Gazprom on November 25. Acting board chairman Ceban and Junghietu are expected to join the energy minister for talks in St. Petersburg.
JSC Moldovagaz, founded in 1999, is Moldova's biggest energy company and one of the largest taxpayers. The company, together with its subsidiaries, provides services to 740,000 customers in Moldova, and also organizes natural gas transit to the Balkans. Gazprom owns 50% plus one share, the Moldovan government has 35.33%, Transdniestria's Property Management Committee 13.44%, and minority stockholders 1.23%.