Vadim Ceban: Natural gas rates should be adjusted monthly

The president of the Administration Board of Moldovagaz confirmed the figures announced earlier by Deputy Prime Minister Andrei Spînu, who anticipated an eventual rise to 14.6-14.7 lei in the natural gas rate. Vadim Ceban said the rise in rates will be inevitable if the purchase price remains higher than US$600 per 1,000 cubic meters of gas. Moreover, he noted that the rates should be adjusted monthly given the permanent fluctuations in the purchase price of gas, IPN reports.

The chief of Moldovagaz said the company sustains losses in January as the purchase price is not covered by the rate. Representatives of Moldovagaz are negotiating the raising of a loan with commercial banks, but unsuccessfully for now.

“The rate has four main components: the purchase price, distribution costs, transportation costs and network losses. The purchase price is the largest component. At a purchase price of US$450, the rate covered all the costs and we closed December with our own forces. In January, the purchase price is US$647. It is not so easy to cover the difference of US$44 million,” Vadim Ceban stated in the program “Black Box” on TV8 channel.

The president of Moldovagaz said the natural gas market became very volatile, with a fully unpredictable purchase price, and the natural gas rates should be therefore adjusted each month.

“Even if we raise the rate, we will be unable to cover the difference during a month. If we raise the rate now, we will get the money in February. We can only ask the supplier to give us several more days for us to be able to pay for the gas consumed in January,” said Vadim Ceban, noting the oil prices change daily and the natural gas rates should be adjusted.

He noted that if the purchase price of gas in February remains above US$600 per 1,000 cubic meters of gas, the gas rate will be close to the figure announced by Deputy Prime Minister Andrei Spînu - 14.6-14.7 lei. If the price is lower, the rate will be lower. The National Agency for Energy Regulation is obliged to examine the situation and adjust the rates itself without waiting for a relevant request from Moldovagaz.

The natural gas rate with VAT included is now 11.08 lei.

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