Procurement of electricity in Moldova needs serious improvement

Electricity
4 April 2018

The 2018 procurement of electricity in Moldova ended with the win of the state-owned company Energocom, with a final price of 52.8 USD/MWh (average). In spite of clear guidelines proposed by the Secretariat and adopted by the Ministry of Economy and Infrastructure, little progress was made compared to last year. Most importantly, the Ministry actively supported the interests of Energocom, especially in the last stages of the procedure. The 2018 procurement procedure also raised suspicions regarding a possible concerted action between Enercogom, MGRES and DTEK – as the last two companies decided to negotiate directly with the state-owned company Energocom outside the formal procedure.

Based on the 2018 experience, the Energy Community Secretariat will suggest amendments to the procurement guidelines: enhanced transparency, an electronic platform, a system of penalties or guarantees for participation are only some of the changes proposed. Most importantly, the Ministry of Economy and Infrastructure should cease supporting the interests of Energocom, and make Energocom comply with stricter rules on corporate governance and transparency to ensure operational independence and separation from the Ministry.

The 2018 procurement of electricity has been monitored by a Group of Observers led by the Energy Community Secretariat.

In Scope:

  • Moldova Moldova