Transdniestrian government steeply raises energy tariffs due to changed gas supply scheme
CHISINAU. Feb 25 (Interfax) - The Transdniestrian authorities will steeply raise tariffs on all types of energy for households and industries on March 1 given the region's new gas supply scheme and loan-based gas procurement, the government of the unrecognized Transdniestrian Moldovan Republic said.
"We are buying gas today. We are buying it, I emphasize this, with a loan. The money has to be repaid. You need to understand this. The very structure of the gas price has changed. The supply cost has changed, as well. We do not receive it directly any more, it comes through many countries. Every time it crosses the border there are costs to be borne," Transdniestrian Prime Minister Alexander Rozenberg said in a statement published on the government website.
"Previously, the cost of gas for certain categories of consumers stood at 1 ruble per 1,000 cubic meters. Now it reflects current economic realities and amounts to 1,156.65 rubles per 1,000 cubic meters. A proportionate increase is envisaged for certain types of industrial and other consumers, which used to have smaller tariffs," the statement said.
Local media said that the gas tariff will now double, while heating and electricity tariffs will increase 1.8-times and 1.5-times respectively.
"The changes derive from a number of factors, including the terms of gas supply, the amount of generated electricity, and electricity exports. They are also related to the amount of electricity generated by the Moldovan GRES, which has fallen three times," Transdniestrian First Deputy Prime Minister, Economic Development Minister Sergei Obolonik said.
The changed cost of public utility services also affects businesses, including agriculture, the statement said. "Previously, the state supported agricultural producers, but in the current circumstances, companies should adapt to the market environment by introducing modern methods business practices," the statement said.
Industrial production halved in January due to the absence of gas supply to Transdniestria and downtime of large enterprises, Rozenberg said. Therefore, "the government, as well as businesses, should rapidly respond to the changed energy situation and forward the spare amounts of gas to the largest taxpayers. Smooth operation of the real sector will provide the payment of taxes to the budget in order to meet all social obligations," he said.
As reported, the Hungarian company MET Gas and Energy Marketing AG has been supplying gas to Transdniestria since February 14. The supply, funded by a Russian loan and organized by the Russian Energy Ministry, will last for 16 days.
