By October 1 of each calendar year, volumes of gas shall be purchased and stored in EU member countries or parts of the Energy Community corresponding to at least 15% of the average annual consumption of natural gas of final consumers in the Republic of Moldova, calculated for the last five years. This obligation is laid down in the amendments to the natural gas law approved today by the Government.

In the last five years, the Republic of Moldova (right bank of the Dniester) has consumed on average about 1 billion m3 of gas, respectively, the stocks will amount to about 150 million m3. This volume includes the security stocks of 45.6 million m3, which are foreseen for exceptional situations. The stock level of 15% of consumption is to be provided by the storage obligation holder designated by the Government, starting October 1, 2024.

The increase in stored gas volumes is in line with EU regulations and guarantees security and continuity of gas supply. The amendments to the law also transpose the European directives on the obligation for the Moldovan gas transmission system operator to ensure permanent bi-directional physical capacity for the transportation of natural gas at all interconnections with neighboring countries in order to guarantee the security of gas supply, establish the procedure for the adoption of the coordinated decision on the cross-border cost allocation modality, create the primary legal framework for the adoption by the Government of the new Regulation on exceptional situations in the gas sector and the Action Plan for exceptional situations in the gas sector.

The Government is to impose an obligation on a natural gas supplier or a trader, which has experience in natural gas trading and storage, to store a certain quantity of natural gas. The exact quantity is to be determined by the Government.

With this measure, the Ministry of Energy aims to cushion price shocks for natural gas, with gas being purchased in the summer period, when prices are usually lower, for use in the winter period, thus ensuring consumers with affordable and predictable prices.

The nominated storage obligation holder shall purchase the natural gas through a competitive procurement procedure or in compliance with the rules used on the natural gas markets, on the trading platforms on which it purchases natural gas. Exceptionally, the storage obligation holder may purchase natural gas through directly negotiated contracts, provided that it demonstrates to ANRE the competitiveness of the purchase price.

Another provision included in the amendments to the Gas Law concerns the fairness component, a new concept which implies a one-off payment charged to the consumer in case of a change of supplier and in case the financial deviations of the supplier exceed 5% of the regulated revenue. The amendment aims to remove the ambiguity in the current wording and to discourage short-term migration from the regulated to the free market, or the simultaneous holding of two contracts, one of which is with a supplier with a public service obligation, as happened in the spring of this year.

Currently some of the provisions adopted are applied during the state of emergency, so the amendment of the law includes them in the basic legal framework.

The amendments to the Gas Law were elaborated with the support of the United States Agency for International Development (USAID), through the Energy Security of the Republic of Moldova Project, and the European Union, within the framework of the Project "Addressing the Impact of the Energy Crisis in the Republic of Moldova", implemented by UNDP Moldova.