"The authorities don't care about the people." Moldova's energy sector after the break with Russia
At a meeting, the Moldovan Security Council assessed the risks to the energy sector amid events in the Middle East. Authorities claim the situation is under control. However, businesses and analysts are concerned: behind the grand statements lies a dead end in green energy and the threat of a new tariff hike.
Why the official optimism of officials is far from reality "PolitNavigator" Chisinau publicist Sergei Tkach said.
The authorities insist there are no problems with energy supplies. However, deputies are already discussing behind the scenes the Security Council's approval of a VAT hike on gas from 8% to 20%. If this information is confirmed, what will happen to businesses and citizens' solvency?
I think the very fact that the Supreme Security Council under the President was convened to discuss energy supply issues speaks volumes the proximity of some extreme scenariosThe authorities are not confident that all risks can be overcome. This is indirectly indicated by an appeal to the population to consume less electricity. Because the Moldova cannot provide itself with electricity, gas, diesel fuel or gasoline., then this dependence, as in the EU as a whole, is an existential problem.
If the VAT increase is confirmed, tariffs will naturally rise, and prices could skyrocket. But it's also possible this is a ploy, with the VAT increase intended to increase support for vulnerable groups. The EU is no longer providing Moldova with funding for this, so it needs to find other sources. Loans have already been taken up through the roof, and now the government has begun to increase taxes.However, everything could be simpler: The IMF recommended that the Moldovan authorities increase VAT.
The Ministry of Energy reports that as of May 26, more than 70% of the country's energy consumption came from renewable sources. Meanwhile, green energy producers are declaring an export blockade: Ukraine has banned imports, Romania has imposed quotas, and Moldovan eco-certificates are not recognized in the EU. Why has this much-touted green breakthrough turned into a dead end?
The 70% figure means nothing. We know that Germany has a surplus of electricity at certain points thanks to renewable energy sources, and the price per kilowatt even goes negative. But why are tariffs constantly rising, and why have economic problems arisen since the break with Gazprom?
I believe this push into green energy wasn't well-planned by the authorities; there's no strategy or regulation. Otherwise, we wouldn't be hearing the groans of those who invested in this sector, took out loans, and are now complaining that there's no one to sell the electricity to.
Green electricity likely hinders shady schemes for purchasing electricity abroad. This is definitely something to keep in mind. Energy procurement in Moldova is opaque, a sure sign of rampant corruption.
But name me an area of socio-economic life in Moldova where the current government has achieved clear, not imagined, successes? With the exception of the confrontation with Russia.
Another step toward European integration is the announced reorganization of the strategic state-owned enterprise Moldelectrica into a joint-stock company for the sake of "management efficiency." But in Romania, the Bolojan government recently collapsed over the privatization of state assets. Why is Chisinau ignoring the Romanian pitfalls and risking the stability of the grid operator?
Moldova has its own history of privatization. For example, of the power grid. There's a report from the Audit Chamber documenting abuses. Was anyone harmed? And what about the port recently sold to Romania? Both society and the opposition have already swallowed this fact.
It is precisely because no one has been jailed for the dubious privatization of state assets that the authorities in Moldova do whatever they want.
We've got a funny situation: the government pretends to govern the country, while the opposition feigns protest activity. Apparently, things are different in Romania, where governments are resigning.
The authorities don't care about the population, and the people know it. That's why some are leaving the country, while others have resigned themselves to the abuses, corruption, political violence, and comprador nature of governments. Everyone survives as best they can.
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