Moldovan authorities to allocate 186 mln euros from EU funds to subsidize energy tariffs

CHISINAU. Feb 4 (Interfax) - The Moldovan government will use 186 million euros from the EU's 250 million euro aid package to subsidize electricity tariffs, Prime Minister Dorin Recean said.

"One hundred and fifty one million euros will be allocated to compensate electricity costs for the entire Moldovan population until December 2025. Each household will pay for the first 110 kWh on their bill at the tariff that was in place before the electricity price increase," Recean was quoted as saying by the state news agency Moldpres.

In addition, 15 million euros will be directed towards covering 50% of additional electricity costs for agricultural enterprises. Another 20 million euros will be allocated to fully cover the increase in electricity bills for socially significant institutions, such as schools, kindergartens, hospitals and social centers.

A further 50 million euros will be allocated for financing energy efficiency projects, with funds being used as part of small business support programs.

At the end of January, the EU provided 30 million euros in emergency aid to overcome the energy crisis caused by the cessation of Russian gas supplies. This includes 20 million euros for gas purchases for Transdniestria and 10 million euros for electricity purchases for the right bank of the Dniester. Energy resources will be procured through authorized trading platforms in the EU.

On Tuesday, February 4, the European Commission and Moldova agreed on a two-year energy independence strategy for the country, which includes 250 million euros in support in 2025. Of this, 100 million euros will be provided by mid-April. In addition, residents of Transdniestria are offered 60 million euros in aid "subject to conditions," the European Commission said. This support "is subject to steps being taken on fundamental freedoms and human rights in the Transdniestrian region and excludes energy intensive activities," it said.

As of January 10, electricity tariffs in Moldova have increased by 75% for Premier Energy consumers and by 65% for FEE-Nord consumers. The rise is linked to the cessation of electricity supplies from the Moldavskaya GRES power plant in Transdniestria, which was caused by the halt of Russian gas deliveries to the region.