Moldovan gas TSO under sharp criticism over tariff hike

• European traders asked to pay difference for capacity booked prior to a sharp tariff increase
• The increase could wipe out transit on Trans-Balkan route
• Ukrainian TSO GTSOU says the latest increase could lead to a revenue reduction for Moldova

LONDON (ICIS)–Traders have lashed out at the Moldovan gas grid operator Vestmoldtransgaz (VMTG) for being asked to pay higher transmission tariffs for capacity booked prior to the price hike on 1 September.

At least ten companies active regionally and local traders who booked monthly or quarterly capacity for gas sourced in southern Europe and transiting Moldova to Ukrainian storage have been asked to pay the difference between the old and the new tariffs.

Traders say the increase is wiping out the competitiveness of one of the most attractive regional transit routes and will block Moldova and Ukraine’s access to non-Russian gas supplies in southern Europe.

An international trader told ICIS that beyond hurting the economic viability of the route the decision would also put a major burden on Moldovan consumers, who will have to face ever soaring bills.

Another trader said the increase would hit the entire region.

He questioned why VMTG increased tariffs by 50% since it hadn’t made any recent investments and the transmission assets it now operates have long been amortised.

MOLDOVAN LOSSES

In a letter sent to the Moldovan regulator, the ministry of energy, VMTG and the Energy Community and seen by ICIS, the Ukrainian gas grid operator GTSOU said reverse flows along the Trans-Balkan route linking southern Europe to Ukraine had ‘significantly facilitated cross-border trading opportunities in the region.’

VMTG, a company majority-owned by the Romanian grid operator, Transgaz, took over Moldova’s transmission operations in September 2023 following a government and regulator push to divest transmission from incumbent Moldovagaz. The transfer of operations via the lease agreement was pushed through after Gazprom, Moldovagaz’ majority owner, repeatedly requested the delay of transmission unbundling.

Immediately after the switchover, VMTG requested a tariff increase, which was approved by the Moldovan regulator.

This year VMTG has requested a further rise, with entry tariffs increasing from Moldovan Lei 20.9/MWh/h (€1.08/MWh/h) to Moldovan Lei 30.7/MWh/h (€1.59/MWh/h) on 1 September. Exit tariffs have also risen from Moldovan Lei 22.3/MWh/h to Moldovan Lei 35.5/MWh/h (€1.85/MWh/h).

GTSOU said in the letter that the sharp tariff increase requested by VMTG combined with an increase in transmission tariffs in neighbouring transit country Romania has led to utilisation rates for the route dropping from 83% in 2023, prior to VMTG’s takeover, to 10% in 2024.

The Ukrainian operator calculated that prior to the first VMTG tariff transit costs to ship gas from Greece to the Grebenyky on the border with Ukraine were around €3.00/MWh.

Following the first rise, the overall cost rose by 67% to €5.00/MWh, while now it has increased to €6.7/MWh, with Moldova being the most expensive transit country in the region and possibly across Europe, traders say.

The Ukrainian grid operator said the latest increase would ‘worsen’ the situation and lead to a revenue reduction for Moldova.

A source close to GTSOU said VMTG could alleviate the situation by introducing comparatively cheaper short-haul tariffs bridging cross-border points.

ANRE, Transgaz and VMTG did not reply to questions by publication.