Moldovagaz: Natural Gas Supplies Are at Risk of Being Terminated

The members of the Emergency Situations Commission (ESC) held a meeting on Tuesday evening, January 11, at which they adopted a number of decisions concerning the situation on the gas market and risks for Moldovan consumers. Thus, it was decided that Moldovagaz JSC will initiate a discussion in the Supervisory Board on the possibility of extending the bill payment deadline until the end of January 2022, zdg.md reports. The government’s press release says that the meeting heard a report of Moldovagaz JSC on the progress of paying bills for gas purchased from the supplier due to the increase in the purchase price for January. Further, the Ministry of Infrastructure and Regional Development reported on the situation in the international natural gas trading markets and implications for the Republic of Moldova. The submitted reports helped reveal difficulties in accumulating funds necessary for Moldovagaz JSC to pay the supplier in full. This is due to negative financial variances provoked by the January hike in prices with the previously approved tariffs preserved. “SA Moldovagaz notified the Emergency Situations Commission that, although the contractual payment terms remained unchanged, the supplier no longer accepts negative financial deviations and, thus, natural gas supplies are at risk of being terminated if payments are not made in accordance with the contractual terms. The meeting participants discussed a number of solutions to avoid such a risk for the Republic of Moldova, including the possibility of attracting a commercial loan. Compensating bills to consumers was also debated since the tariff may be increased,” the governmental press release reads. Thus, the Commission members adopted the following decisions: - State institutions will take measures to rationalize gas and electricity consumption based on the recommendations of the Ministry of Infrastructure and Regional Development; - Moldovagaz JSC initiates discussion in the Supervisory Board as to the possibility of extending the bill payment deadline until the end of January 2022; - Moldovagaz JSC will continue negotiations with commercial banks on attracting a commercial loan and will officially inform the Commission members about the banks’ response; - The Ministry of Finance will analyze the existing legal options regarding the postponement of VAT payment by Moldovagaz JSC for a short period, thereby providing the company with the necessary liquidity for current payments; - The Ministry of Labor and Social Protection together with the Ministry of Finance will analyze the situation with the increase in the natural gas tariff and how it affects consumers, as well as submit proposals to improve the compensation system; - The Ministry of Infrastructure and Regional Development will continue to monitor the situation and will regularly inform the Commission members about further developments. The Emergency Situations Commission will reconvene at the meeting to assess the situation on the natural gas market and, if necessary, make new decisions in order to avoid major risks for consumers. Point