Ukrhydroenergo to cover 30% of Moldova's electricity shortages in May
CHISINAU. May 11 (Interfax) - The Ukrainian company Ukrhydroenergo will deliver 30% of the electricity Moldova lacks in May, the Moldovan government's Public Property Agency said on Wednesday.
"Talks were held directly with Ukrainian electricity companies (including Energoatom, D. Trading, and so on) with a request for offers to ship 30% of the needed consumption. Energocom concluded a contract with Ukrhydroenergo, whereby the Ukrainian company will supply Moldova with 30% of electricity needed in May. Under the terms of the contract, at the demand of the Ukrainian side, the purchasing price is a commercial secret and not to be disclosed, but I can confirm that it is lower than the bids received at the previous tender," Energocom's Acting General Director Vladimir Sadovoi was quoted by the Agency as saying.
The deliveries will begin as early as May 12, the Agency said.
Sources in Moldova's Ministry of Infrastructure and Regional Development told Interfax that Ukrhydroenergo had offered to supply Moldova with electricity at $83.5 per 1MWh. After direct talks in in late April, Energocom signed a contract with the Moldavskaya GRES power plant to deliver electricity at $59.5 per 1MWh. The plant, in turn, undertook to meet 70% of Moldova's May demand. With this agreement with the Ukrainian company, average prices could be around $67 per 1MWh.
Moldova buys electricity from Moldavskaya GRES in Transdniestria. Since March, only one-month contracts have been signed because of the energy crisis and unstable gas prices. Because Gazprom cut gas supplies to Transdniestria in May, Moldavskaya GRES warned Chisinau that this month it could only deliver 70% of the needed electricity to the right bank of the Dniester river.
According to preliminary data, under the current purchasing price of electricity the effective rates for the end consumer will not increase. However, the National Agency for Energy Regulation intends to analyze all market variations to determine whether an adjustment of the rate was needed.
Energocom is Moldova's main supplier of natural gas and electricity at unregulated rates. At the decision of the Emergencies Commission, Energocom signs purchase contracts and after that with suppliers and distributors.
Ukrhydroenergo is Ukraine's biggest hydropower generating company, which is among the 15 largest state-owned enterprises and owns 70% of all public assets. The company comprises ten power plants on the Dnieper and Dniester rivers, including the Dniester hydropower plant on the border with Moldova. The company covers needs at peak times, regulates frequency and capacity, and provides a mobile emergency reserve in Ukraine's united energy system.