MGRES resumes power supply to western bank as price for end users expected to drop

The state company Energocom signed a deal with the Kuchurgan Power Plant (MGRES) for electricity to be supplied to the western bank in December, with the possibility of renewing the agreement for another three months. This was announced by Deputy Prime Minister Andrei Spînu.

According to Spînu, the contracted amount of 204,000 MW, bought at a price of $73/MW, plus the volumes received from Romania, should be enough to cover the western bank’s needs in December. As part of the deal, the eastern bank, including MGRES, will receive 5.7 million m3 of gas daily.

Spînu further suggested that the lower wholesale price of $73/MW will enable the authorities to reduce prices for end users as well.

The deputy prime minister described the deal as “a reasonable compromise for ensuring people of both banks of the Nistru River with electricity and gas supplies”.

“The western bank will be using the gas that we have accumulated in our storages. For the first time, the western bank does not depend on the gas supplied by Gazprom. Additionally, with this contract signed, the risk of massive power outages is being reduced. We are doing our best to keep the country on the grid”, declared Spînu.

MGRES halted supplies to the western bank on November 1, leaving the authorities in Chisinau scrambling for alternatives on the international market, sometimes at much higher prices.

Earlier this week, Energocom made a historic purchase of a sample amount of gas from the Mediterranean via the Trans-Balkan Corridor, marking the first time ever it has been used in reverse-flow mode.

Meanwhile, Romania today started supplying gas through the Iasi-Chisinau pipeline.

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