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Posted by: Alina Zlatov
News / Economic
05 July 2022 / 15:28
The government will develop a new mechanism to offset the price of natural gas
The government would present the new mechanism for compensating the price of natural gas by the end of this month. However, the government's ability to provide compensation will be limited, experts warned, Radio Moldova reports.
By the end of July, the Government will present the new mechanism for compensating the price of natural gas from bills, said PAS deputy Radu Marian in a TV8 show. According to him, for the time being, the authorities are waiting for ANRE's decision regarding Moldovagaz's request to increase the price of a cubic metre of natural gas by up to 23,57 lei.
"We are preparing a compensation mechanism for the winter and the Government has published the bill on particip.gov.md. There will be 6 categories of households depending on their energy vulnerability. We are already preparing this concept, by the end of the month it will be approved and people will know how to benefit, because it will be a little different, it will be based on demand. Last winter we compensated about 3,500 lei for the whole cold season per household, they received money and certain categories of households, which did not need it. Now it will be a little different," said Radu Marian.
The capacity and possibility of the Government to provide compensation in the cold season of the year will be much more limited compared to last year, because the state budget deficit is 20 billion lei, says economist Veaceslav Ionita. The expert suggests to the authorities to be more explicit and to communicate to the people who will be the beneficiaries and according to what criteria these compensations will be offered.
"This year, the execution of the budget in terms of revenues, we are doing relatively well, but we have the largest budget deficit - about 20 billion. What does the budget deficit mean? That we have approved expenses with 20 billion lei more than we have money, you have to borrow the rest. In the first five months, only two billion were borrowed, there are seven months left in which another 18 billion must be identified, provided that in the domestic market the debts reached a rate of 19%, and in the foreign market - no too much success. That is why the government's capabilities and possibilities will be limited. We have a situation in which the solutions really need to be identified," said Veaceslav Ioniţă.
TRM.MD recalls that MoldovaGaz has submitted a request to ANRE to increase the natural gas tariff for final consumers, starting with July 1. According to the document, after the increase, the citizens could pay the amount of 23,57 lei for a cubic metre of gas, without VAT.
ANRE has 6 months to come up with a final decision in this regard.
"We are preparing a compensation mechanism for the winter and the Government has published the bill on particip.gov.md. There will be 6 categories of households depending on their energy vulnerability. We are already preparing this concept, by the end of the month it will be approved and people will know how to benefit, because it will be a little different, it will be based on demand. Last winter we compensated about 3,500 lei for the whole cold season per household, they received money and certain categories of households, which did not need it. Now it will be a little different," said Radu Marian.
The capacity and possibility of the Government to provide compensation in the cold season of the year will be much more limited compared to last year, because the state budget deficit is 20 billion lei, says economist Veaceslav Ionita. The expert suggests to the authorities to be more explicit and to communicate to the people who will be the beneficiaries and according to what criteria these compensations will be offered.
"This year, the execution of the budget in terms of revenues, we are doing relatively well, but we have the largest budget deficit - about 20 billion. What does the budget deficit mean? That we have approved expenses with 20 billion lei more than we have money, you have to borrow the rest. In the first five months, only two billion were borrowed, there are seven months left in which another 18 billion must be identified, provided that in the domestic market the debts reached a rate of 19%, and in the foreign market - no too much success. That is why the government's capabilities and possibilities will be limited. We have a situation in which the solutions really need to be identified," said Veaceslav Ioniţă.
TRM.MD recalls that MoldovaGaz has submitted a request to ANRE to increase the natural gas tariff for final consumers, starting with July 1. According to the document, after the increase, the citizens could pay the amount of 23,57 lei for a cubic metre of gas, without VAT.
ANRE has 6 months to come up with a final decision in this regard.
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