Facilitation of negotiations over gas distribution losses in Moldova successfully concluded

Facilitation of a dispute over costs associated with losses in gas distribution networks in Moldova was finalised this week within the framework of the Secretariat’s Dispute Resolution and Negotiation Centre.

According to a Memorandum of Understanding signed in May 2020, a Working Group was established between the Moldovan regulatory authority, ANRE, and the holding company of distribution companies in Moldova, Moldovagaz, in order to determine the volume of technological consumption and technical losses in the gas distribution networks for the period 2011-2019.  During the last decade, the company questioned the applicability of ANRE’s methodology for calculating technological consumption and technical losses.

The closing meeting of the Working Group took place on 5 August 2020. Moldovagaz agreed to submit to ANRE the calculations and data regarding technological consumption and technical losses for the period 2011-2019. On the basis of this newly-submitted information, ANRE will approve the final amount of technological consumption and technical losses for the purpose of distribution tariff calculation in the following months.

Both ANRE and Moldovagaz are committed to resolve this issue as a matter of priority and determine the volume of technological consumption and technical losses in the following regulatory periods on the basis of a new methodology, currently under development.