Moldovan Cabinet of Ministers approved measures to prevent and mitigate the consequences of the energy crisis in case of gas supply cuts and preparations for the heating season 2022-2023.
The document was adopted taking into account the risk of cuts of gas supplies to Moldova during the heating season 2022-2023, based on the contracts in force. The Cabinet provides for the creation of a governmental commission on the coordination of measures to prevent and alleviate the consequences of the energy crisis, in case of the gas supplies cuts and preparations for the heating season of 2022-2023. The commission will be headed by Prime Minister Natalia Gavrilita, while Deputy Prime Minister and Minister of Infrastructure and Regional Development, Andrei Spinu, will be the commission’s deputy chairman. Also, the government approved an action plan meant to prevent and mitigate the consequences of the energy crisis in the event of cuts in the supply of natural gas and preparations for the heating season 2022-2023. It was agreed that the ministries, departments and enterprises named in the action plan will develop and approve internal plans for taking the necessary actions, as well as submit to the Ministry of Infrastructure and Regional Development before September 15, October 15 and November 15, information on the implementation of the envisaged measures. As Deputy Prime Minister, Minister of Infrastructure and Regional Development Andrei Spinu noted, the approval by the government of the necessary measures to prevent and mitigate the consequences of the energy crisis is aimed at the good organization of the operation of the heads of energy consumers and heat and power supply systems, in particular: accelerating the implementation of energy efficiency programs; taking the necessary measures to facilitate the import of raw materials for the production of solid biofuels; identification of measures for the application of tax incentives to promote renewable energy and energy efficiency; taking measures to meet the demand for firewood for the heating season 2022-2023. According to him, the 27 approved measures to reduce and mitigate the effects of a possible gas crisis were developed taking into account the analysis of 3 scenarios with a 35%, 50% or 100% probability of reduction of natural gas supplies. The first 5 reduction measures are mandatory, regardless of whether there will be restrictions on natural gas supply or not. The others will be applied incrementally, depending on the actual scenario of natural gas supply cuts. Among them: reduction by 10% of the temperature of heat carrier supplied to centralized heating systems; transfer of Termoelectrica to fuel oil; use of natural gas reserves in national transportation networks; use of available strategic natural gas reserves, etc. As noted, regardless of Gazprom's decision on gas supply, the Moldovan authorities will take measures to reduce gas consumption during the cold season by at least 15 per cent. Necessary measures to prevent and mitigate consequences of energy crisis in case of gas supplies cuts will be established. It is planned to increase the number of protected consumers by including into this category all small and medium enterprises with average daily consumption of less than 600 cubic meters of gas per day, as well as thermal power plants, which supply heat to protected consumers and cannot use other types of fuel. It is planned to increase and replenish state stocks of fuel oil, which is an alternative to natural gas for Termoelectrica to produce electricity and provide heat to Chisinau municipality. The necessary amount is 216,000 tons and can replace approximately 312 million cubic meters of gas, which according to calculations will ensure consumption for October-April 2022-2023. A contract has already been signed for the purchase of the first volumes of fuel oil, which will be sent to the state reserve. In addition, the population's access to the purchase of firewood at previous prices will be ensured. In addition, the import of coal will be simplified. It is stipulated that in Moldova, in order to save gas during the heating season, it is possible to switch to remote education and turn off the street lighting at night, but this will happen only in case of extreme necessity. It is planned that switching to remote education process online (at least 10 days a month) will save approximately 13 million cubic meters of gas, turning off street lights at night (after 11 p.m.) will reduce gas consumption by 1.4 million cubic meters and reducing the temperature of the heating carrier in the centralized heating system by 10%, while observing the minimum normative values, will reduce the consumption of natural gas by 13 million cubic meters. It is also proposed to limit the temperature in the premises of private and public institutions to a maximum during non-working hours and weekends, and in hotels, restaurants, commercial and public buildings and households to limit the temperature in the premises to 19 °C. Employees of institutions and companies will also work in shifts at home, or their working hours will be reduced. The government intends to purchase the volumes of gas necessary to cover consumption from alternative sources or on the spot market. According to the estimates of the relevant ministry, with the help of the EBRD loan and all measures to save gas, at the calculated average purchase price of 1,500 euros per thousand cubic meters, it will be possible to cover the gas deficit until January and partially cover the consumption in February. In the short and medium term, the Moldovan government intends to give priority to strengthening security and energy efficiency. In addition to the changes made to the natural gas and electricity legislation, a large-scale project aimed at improving the energy efficiency of public buildings is to be launched in 2022. Following consultations with state authorities, responsible for the implementation of measures that will affect the state budget, it is expected that additional budgetary expenses of about 1 billion 355 million lei will be required in 2022, and financial resources of about 5 billion 348 million lei will be planned in the state budget for 2023 in order to achieve the measures provided in the relevant plan. At the same time, at this stage, it is difficult to forecast the expenses for each precautionary/mitigation measure with an impact on the budget, due to the existence of several uncertainties, such as the level of energy crisis (for instance, the level of natural gas supply cuts of 35%, 50%, 100%), or even the absence of gas supply cuts; weather conditions during the heating season 2022-2023, which have a direct impact on energy consumption; high volatility of prices for energy resources during this period, etc. // 25.08.2022 - InfoMarket.
