OREANDA-NEWS. February 27, 2010. Deputy Prime Minister, Minister of Economy of Moldova Valerii Lazar said at the press conference in Chisinau that it was stipulated by the direct contract on electric power supplies to Moldova signed today in Chisinau by the leadership of the Moldovan Hydroelectric Power Station, situated in the Transnistrian region and belonging to the Russian company “Inter RAO EES” and the leadership of the RED Union Fenosa company – the largest electricity distributing company of Moldova uniting Chisinau, Central and Southern distributing networks of the republic. According to Valerii Lazar, the contract on electricity supply will become effective on March 1, 2010 and will be valid till the end of the first half of 2011.

It stipulates that the Moldovan Hydroelectric Power Station will supply to the RED Union Fenosa company about 2.4 billion kilowatt-hour of electric power at 5.5 cents for 1 kilowatt-hour. It is also planned that another about 1 billion kilowatt-hour will be purchased from the Moldovan Hydroelectric Power Station by the RED Nord and RED Nord-Vest belonging to the state. Valerii Lazar emphasized that the negotiations over the reduction in pries for electric power for Moldova had been held on the level of the Russian Government.

Valerii Lazar said the reduction of the prices had become possible thanks to the openness and constructive position of the Russian authorities and “Inter RAO EES” that found internal resources to cut the cost of electricity supplied to Moldova. Valerii Lazar emphasized the importance of the fact that the Russian party despite the growth of prices for gas agreed to cut the cost of electric power for Moldova and to guarantee the stability of supplies and prices till the end of the first half of 2011. The new contract will enable keeping the current fees for electricity for Moldova’s consumers.

The chairman of the Moldovan Hydroelectric Power Station’s Board of Directors Carina Turcan said at the press conference that the Moldovan-Russian inter-government commission for economic cooperation had played an important role in the decrease in prices for electricity for Moldova. According to her, the Moldovan Hydroelectric Power Station will reduce to minimum its production costs in order to cut costs for electric power. Besides, in case of the growth of gas prices, the Moldovan Hydroelectric Power Station being the universal station, may use the alternative kinds of fuel – coal and black oil.

The President of the RED Union Fenosa company Silvia Radu said the direct contract with the Moldovan Hydroelectric Power Station would ensure stability of the energy system management, solidity of electricity supplies at a stable price which won’t be changed for 13 months irrespective of prices for natural gas used for electricity production. She also said the cut in price for electric power would allow compensating financial deviations in the amount of 70 million leis accumulated this year because of the change in the leu’s exchange rate, as the rate of 12.2 leis for a dollar was fixed in the tariff with the current 12.7 leis.

Until now, Moldova purchased electric power from the Moldovan Hydroelectric Power Station at 5.83 cents for 1 kilowatt-hour through the state company Energocom. The company lost its monopoly status due to the beginning of liberalization of Moldova’s electric power market stipulating that electricity distributing companies will be able to choose electric power supplies on their own. Moldova produces about 30% of the needed electric power. The deficient volumes are purchased from the Moldovan Hydroelectric Power Station.

Earlier Moldova imported electric power from Ukraine, however it has preferred purchased from the Moldovan Hydroelectric Power Station since the beginning of the last year as Russia offered a lower price. Initially it was 4.69 cents for a kilowatt-hour, however, since January 1, 2010 it was increased to 5.83 cents. In this situation, talks with Moldova on electric power supplies were resumed by Ukraine, however, it didn’t offer a more attractive price.