Executive summary

The energy policy agenda of the Republic of Moldova (Moldova) is driven by several interrelated factors. The first key driver is high dependence on imports from limited sources and subsequent energy security considerations. Moldova’s energy self-sufficiency is among the lowest in the world: only around 25% of its energy demand is covered by domestic production, consisting almost entirely of solid biomass and variable renewable energy sources. Moldova imports 100% of its gas and coal consumption, nearly all of its oil consumption and around 80% of its electricity (including electricity procured from the Moldavskaya GRES [power station] situated in Transnistria).1

Second, Moldova has obligations stemming from its aspirations for European integration. In 2010, the country became a member of the Energy Community and in 2014, it signed an Association Agreement with the European Union, which implies a commitment to transpose the core EU acquis communautaire2 into national legislation. One of Moldova’s long-term objectives is to gain access to the network of the European association for the cooperation of transmission system operators for electricity (ENTSO-E) by interconnecting its national electricity network with that of Romania.

Third, the country’s energy policy integrates Moldova’s international and internal commitments in the areas of climate change mitigation and environmental protection.

Since the last IEA review of Moldova’s energy policies (IEA, 2015), the country has made significant progress towards meeting the three key objectives of the Energy Strategy of the Republic of Moldova to 2030: 1) ensuring the security of energy supply; 2) developing competitive markets and their regional and European integration; and 3) ensuring sustainability of the energy sector and climate change mitigation.

Commendable efforts have been made towards the diversification of supply sources and increasing the security of both electricity and gas supply. Notable actions were taken, in particular, to avoid the potential gas crisis resulting from the interruption of Russian gas supply through the Ukrainian gas network at the end of 2019. By interconnecting with Romania through the Ungheni-Chisinau pipeline, Moldova has created the possibility of alternative gas supply from Romania. The modification of the gas network to allow the reverse flows from the Trans-Balkan system, actual testing of deliveries to Ukraine and the use of its gas storage capacities have created additional possibilities of supply diversification and access to the EU markets, including potential access to liquefied natural gas (LNG) supplies through Greece. Moldova has adopted the full set of security of supply rules, even beyond the current Energy Community acquis.

The Moldovan government is also to be praised for the efforts focused on market reforms and aligning the national legal framework for energy with that of the EU. Moldova has successfully adopted several legislative acts, which transpose the EU’s Third Energy Package3 at the level of primary legislation; related secondary legislation is also being developed and partially adopted. Moldova is also on the right path to developing a sound institutional structure in the energy sector, informed by better statistical data. The National Bureau of Statistics (NBS) is commended for its efforts to improve energy data collection and reporting. Efforts have also been made to adjust national legislation in the field of renewable energy and energy efficiency and to enhance regional cooperation.

Over several years, Moldova has successfully removed cross subsidisation of electricity and gas tariffs for households, though this has been politically difficult. It has also introduced targeted support schemes for the most vulnerable consumers. The National Agency for Energy Regulation (ANRE) and the government should be praised for this major achievement. It is also encouraging that ANRE has approved market rules for the procurement of electricity on forward, day-ahead, intra-day, balancing and ancillary service markets, as well as gas market rules and network codes. Considerable progress in attracting investment to modernise the country’s district heating systems is also to be noted.

After signing the Paris Agreement on climate change in 2016, Moldova was among the first countries in the EU4Energy region to develop and approve its Low Emissions Development Strategy (LEDS) in December 2016 and the National System of Monitoring and Reporting of Greenhouse Gas Emissions in 2018. The country is to be commended for its decision to set more ambitious targets in its updated nationally determined contribution (NDC2), which was submitted in February 2020. The new economy-wide unconditional target is to reduce GHG emissions by 70% below the 1990 level by 2030, instead of 64-67% as committed in the NDC1. The updated NDC raises the conditional target to 88% (compared to 78% committed in the NDC1). The government plans to update the current LEDS in order to implement the targets stated in the new NDC. Moldova is also one of the first countries in the EU4Energy region4 that has pledged (by a Government decree adopted in December 2019) to develop, by 2022, a new mid-century Low Emissions Development Strategy, outlining the policies for accelerating GHG reductions by 2050.

Despite all of these notable achievements, the Moldovan energy sector still faces major challenges which need to be addressed in a timely manner in order to improve energy security, accelerate the transition towards a more sustainable, clean and efficient energy system and support the development of free and competitive energy markets.

As a matter of priority, the adoption of sound primary legislation should be followed by the adoption and effective implementation of secondary legislation and regulations. This process, which has been partially achieved, is hindered primarily by the lack of human and institutional capacity in the state institutions responsible for energy policy implementation. The number of staff seems insufficient to fulfil all the assigned responsibilities in a timely manner, and the salaries are reported to be too low to attract qualified specialists. In addition, insufficient coordination among the government institutions – and between the state bodies and other stakeholders – puts further stress on the limited human resources.

To facilitate and accelerate the implementation of the ongoing energy reforms, the government should ensure that the Energy Policy Department of the Ministry of Infrastructure and Regional Development (MIRD), the Energy Efficiency Agency (EEA) and other key institutions have sufficient capacities to fulfil the energy policy objectives. In addition, cooperation should be enhanced among the government agencies.

Proper communication and coordination between the public and private sector are of vital importance in developing fair and efficient energy markets and the related enabling environment. It is therefore necessary to develop a communication strategy to explain the key benefits and challenges of the ongoing reforms to energy stakeholders and the population. The private sector, civil society and academic community should be involved in the development of a legal and regulatory framework, for example through creation of working groups reporting to the highest levels of government and supported, where possible, by the donor/International financial institutions (IFI) community.

The energy regulator has a significant role in the further development of the energy sector. The independence, competence and accountability of ANRE are crucial for the development of the energy sector. It is therefore very important to ensure that the regulator can perform its functions without political pressure to effectively balance the needs to both protect the end users, and to attract investment to, and ensure the financial sustainability of, the energy sector. At the same time, the most vulnerable consumers should be supported by targeted social protection measures.

Moldova will derive numerous benefits from the development of free, liberalised, competitive markets for electricity, gas and oil products: these markets would stimulate investments in generation facilities and infrastructure, provide comfort to investors, suppliers, traders and consumers, contribute to overall increased energy security and decrease upward pressure on energy prices in the long run. To create such markets, the government and the ANRE should accelerate the pace of implementing the legal and regulatory provisions in line with the Third Energy Package.

It is necessary to finalise the unbundling and development of independent market operators in the electricity and gas sectors, implement transparent and fair market rules, and minimise state interference in trading. As regards electricity, providing access to neighbouring and regional markets, regional traders and suppliers will stimulate liquidity on the Moldovan market. It will be necessary to develop spot markets in order to allow market coupling with the Romanian and Ukrainian Day-Ahead/Intra-day Markets. Development of balancing markets will create a favourable environment for the optimal technical and economical operation of the energy system.

Regarding the gas sector reforms, Moldova has adopted several regulations, including the network code and market rules, as a step towards the establishment of a competitive gas market. Unbundling of network and trading activities has been implemented at the distribution level, where 12 regional Distribution System Operators (DSOs) were separated from supply activities. Unbundling at the transmission level is underway. Moldovagaz – currently a vertically integrated company controlling almost the entire chain of gas business (import, transit, transmission, wholesale supply, distribution and retail supply) – is expected to be unbundled through the Independent Transmission Operator  (ITO) model.

The retail market was declared open as of the adoption of the Gas Law in 2016. Most customers had been supplied by Moldovagaz under the Public Service Obligation (PSO), but trading at non-regulated prices started in 2020 and the number of independent suppliers grew from 17 to 24.

Moldovagaz has accumulated a large debt to Russia’s state-owned energy corporation, Gazprom, for the gas provided to Transnistria5 (reportedly USD 7 billion as of the end of 2019). Although the debt does not accrue to the Moldovan government or the right bank consumers, the unsustainable business model harms Moldovagaz’ credibility as a trusted, financially healthy player, especially in view of its role as a major importer, Public Service Supplier and Supplier of Last Resort. To ensure the sustainable operation of Moldovagaz and to secure uninterrupted gas supplies in the future, a solution should be found to resolve the issue of debt accumulation and to establish the gas trade according to commercial principles.

The removal of cross subsidisation of electricity and gas tariffs for households and the introduction of targeted support schemes for the most vulnerable consumers are very positive steps. There is room for further improvements and potential for innovative approaches to the distribution of benefits within the energy taxation system and for phasing out tax distortions. Also, the Public Service Obligation regime applicable to all residential gas consumers is hardly compatible with the establishment of a competitive market and needs to be gradually reduced and refocused on vulnerable customers only.

Moldova is highly dependent on imports for most of its energy supplies – about 75% of energy demand is covered through the imports of electricity, gas and oil products. The sources of electricity and gas imports are not diversified and crucially depend on gas supply from Russia and electricity supply from the Moldavskaya GRES power station, which operates beyond the control of the Moldovan government. Absence of alternatives gives the monopolistic suppliers potential leverage to exert strong economic/political pressure, which may be used to limit new entrants to the market.

The security of gas and electricity supply can be enhanced through further diversification of routes/sources of supply, development of local energy production, development of cross border/regional infrastructure and harmonisation of cross-border trading rules and regulations with Romania and Ukraine, with further integration and market coupling goals for the longer-term future. Moldova’s integration in the regional market and diversification process will make the relationship with Transnistria more sustainable and mutually beneficial.

Opportunities for alternative supplies of natural gas now exist, as stated above, thanks to the Iasi-Ungheni-Chisinau pipeline, possible reverse flows from the Trans-Balkan system, and the possibility to buy gas from EU markets and store it in Ukrainian underground gas storage facilities. However, Moldova still procures natural gas almost exclusively from Gazprom through the traditional route from Ukraine: the Iasi-Ungheni-Chisinau pipeline remains mostly idle, and the Trans-Balkan reverse flow has not yet resulted in any significant flow to Moldova. Such high dependence on a sole gas supplier may constitute an energy security risk, not only for the supply of gas but also for the security of the electricity supply because most of the electricity is generated from natural gas (including in Transnistria). Moreover, the throughput of gas transit pipelines has dropped dramatically after construction of the Turk Stream pipeline, which redirected the gas flows to South-East Europe away from transit through Ukraine and Moldova.

The future of the gas sector in Moldova will depend on the progress made on the full application of the EU’s Third Energy Package, opening of the internal market, implementation of transparent and equitable transit regulations, as well as active engagement with neighbouring countries to encourage improved regional cooperation, interoperability, trade and exchange.

In the electricity sector, Moldova’s long-term objective was to fully interconnect with the European Network of Transmission System Operators for Electricity (ENTSO-E). This was achieved significantly earlier than planned, due to Russia’s invasion of Ukraine in late February 2022. After an urgent request by Ukraine and Moldova for emergency synchronisation, ENTSO-E was able to accelerate the process and successfully connect Ukraine and Moldova’s power systems to that of Continental Europe. They are now disconnected from the Integrated Power System/Unified Power System of Russia (IPS/UPS). Moldova and Ukraine are now working with ENTSO-E on full synchronisation, as the current emergency mode does not allow for full-fledged commercial electricity trade. The government of Moldova, with the support of the European Bank for Reconstruction and Development EBRD), European Commission (EC), European Investment Bank (EIB) and World Bank, is pursuing interconnections with Romania through an initial back-to-back converter in Vulcanesti in southern Moldova and a 400 kV line between Vulcanesti and Chisinau. Further interconnection points are also being explored. These interconnections, along with the ENTSO-E synchronisation, will strengthen electricity security through diversification of sources and reduce Moldova’s reliance on imports from Ukraine and the Transnistria region.

Another challenge for the electricity sector is the integration of variable renewable energy (VRE) sources as their penetration is expected to increase significantly in the coming years as one of the government’s objectives is to develop local generation, including from renewable energy sources. A 168 MW cap on the development of renewable energy capacity (mainly wind and solar PV plants), which was put in place in 2018, was updated in December 2021 for the period up to 2025, raising the maximum capacity to be supported by promotion mechanisms tentatively to 460 MW. The country plans to install an additional 400 MW.

The Moldovan power system is currently based on an inflexible domestic generation mix, and the country relies on Ukraine both for reserves and for balancing its generation. This reliance severely limits its ability to integrate large shares of VRE sources into the grid. As international experience demonstrates, a country’s ability to integrate VRE depends on the flexibility of its power system – which is largely determined by its infrastructure, such as interconnectors, electricity storage and flexible power plants. It is equally important to have appropriate policies, including regulatory and market frameworks. Electricity market rules approved in 2020 create conditions for improved forecasting from large renewable energy plants, which would decrease imbalances in the system. In addition, a market framework with shorter scheduling intervals would allow scheduling to be closer to the real-time delivery of power and increase the accuracy of forecasts. Investment in flexible infrastructure in Moldova could include: storage, e.g. batteries and thermal storage; retrofitting and modernising of existing generators, e.g. regulation of power output from cogeneration plants; and increased interconnection and use of demand-side resources, e.g. smart-charging electric vehicles or time-of-use tariffs.

In the heating sector, Termoelectrica and CET-Nord JSC have secured loans from the World Bank and EBRD to improve operating efficiency and financial viability in the district heating systems in Chisinau and Balti, respectively. Energy efficiency measures, such as the modernisation of pumping stations and the rehabilitation of segments of the distribution network, have been implemented. Nevertheless, heat losses remain high, at around 19%, well above the level of 5 to 10% in more modern district heating systems of a similar size. There is a great need for further investments in the district heating infrastructure in Moldova, including new heat-generation plants and insulation of grids.

District heating is subject to regulation in setting tariffs and approval for investment projects. The tariff setting methodology, however, differs from the methodologies applied to electricity and gas tariffs. For district heating companies to be financially viable, tariffs should be set at a level that allows companies to recover costs related to improving the efficiency of operations and maintenance, and fuel and capital costs (including depreciation and financing costs). At the same time, protection of vulnerable customers should continue by targeted social policies.

Moldova faces a significant challenge to comply with the requirement to create strategic stocks of crude and/or petroleum products. As of early 2021, Moldova had limited oil stocks. The country drafted a Law on creating and maintaining a minimum level of oil product stocks in 2017, but its completion and adoption were still pending. There remain significant issues in terms of the appropriate mechanism to meet this legal obligation and the available facilities and compliance costs depending on the approach. This uncertainty and delay will only increase the potential negative impact (e.g. pressure on prices) if reserves are to be increased over a short period of time. 

As the energy sector is the key emitter of GHGs and of air pollutants, energy policies should be closely coordinated with both climate change and environmental policies. A working group has been established by the MIRD and the Ministry of Environment (ME) to prepare jointly the National Energy and Climate Change Action Plan. Coordination and information exchange between these two ministries should be further enhanced: for example, the energy demand and supply modelling prepared by the MIRD is helpful for the ME’s work on climate change projections, while the forecasts related to impacts of climate change on the Moldovan economy should inform the energy sector development strategies.

The government has created a multi-stakeholder Climate Change Coordination Mechanism to foster dialogue, coordination, collaboration and coherence among sectors. The National Climate Change Commission (NCCC) has been established to ensure cross-sectoral coordination of all climate-related components: adaptation, GHG emissions and mitigation. This is a very positive initiative. Since this Commission – as a formal body with a permanent secretariat and Technical Committees on specific thematic areas – has been established at a high decision-making level, it is ensured to get sufficient policy attention. The Commission was built upon the lessons learned from the operations of the previously established inter-ministerial bodies, such as the Committee on Sustainable Development and the Committee on Green Economy.

Following the adoption of the EU’s “Clean Energy for all Europeans” package and the amendments in the relevant directives, Moldova needs to further adjust its legislation to the more ambitious EU framework. This includes preparing an integrated 10-year National Energy and Climate Plan (NECP) outlining how the country intends to meet the energy efficiency, renewable energy and other targets for 2030.

As regards energy efficiency (EE) and renewable energy (RE), Moldova has made commendable progress in adopting a legal and regulatory framework aligned with the relevant EU directives, in compliance with the country’s commitments as an Energy Community Party. One praiseworthy example is the nearly complete transposing into national legislation of the EU acquis on eco-design and labelling of energy-related products. Moldova still needs to adopt several necessary by-laws to fully transpose the EU acquis related to energy efficiency and renewable energy. Most of the missing regulations have already been developed (with the support of the Energy Community Secretariat and other development partners), and the key challenge for the Government of Moldova will be their full implementation and enforcement. It is also important to establish national legally binding energy efficiency and renewable energy targets beyond 2020, which are absent in national legislation as of early 2021. Establishing legally binding targets for a relatively long period of time would give clear signals to market players.

Despite numerous strategies, action plans, programmes and an extensive body of legislation, progress in improving energy efficiency has been limited. Moldova needs to make additional efforts to ensure the effective implementation of energy efficiency strategies, policies and programmes. This can be done through better enforcement of legal and regulatory requirements, enhanced public awareness of energy efficiency benefits and related possible improvements, facilitated access to financing, support for developing an energy service companies (ESCO) market, and further legal and regulatory improvements particularly to facilitate decision-making and enable energy efficiency improvements in condominiums. The government should also consider how it can amend residential energy price subsidies and create additional incentives to provide proper price signals for energy efficiency improvement while avoiding exacerbating inequality and energy poverty.

According to the official methodology (Directive 2009/28/EC), renewable energy accounted for 25.1% of final energy consumption in 2020 compared to the binding 2020 target of a 17% share. However, this is mainly due to the traditional use of biomass for heating, which used to be underestimated until the revision of the data for the period 2010-2016. Moldova has successfully promoted the use of biomass in the heating sector over the last decade with the support of development partners. However, the available biomass – especially wood – is limited and the use of the different sources should be coordinated to be deployed in an efficient and sustainable manner. Adopting a comprehensive approach which would develop a clear strategy on biomass deployment based on a thorough study is therefore recommended. This study would investigate (among other things) best use of agricultural and municipal waste, wood and the option of an increased use of energy crops. The soil degradation resulting from the lack of soil regeneration and from potential depletion should be considered when implementing the strategy on the use of biomass residues. It is important to strive for a sustainable and balanced biomass deployment, thinking about all possible side effects.

According to the Law on the Promotion of the Use of Energy from Renewable Sources, which entered into force in 2018, RE-electricity can be supported by three legal instruments: net metering and feed-in tariffs (FITs) for smaller-scale installations, and auctions for larger plants. The net metering and FiT schemes have already been implemented resulting in growing electricity generation from renewable energy sources (RES). The government is now encouraged to finalise auction implementation details, and conduct initial RES auctions in accordance with best international practices.

The 10% mandatory target for RE in the transport sector is far from being met, as almost no action has taken place in this area. The government is encouraged to develop as soon as possible a clear strategy for the transport sector, supported by legal and regulatory instruments.

Implementation of Moldova’s energy policy objectives will require deployment of new energy technologies. Moldova’s research, development and demonstration (RD&D) system – with the presence of a strong scientific tradition, a network of industrial research institutes including the Academy of Sciences – provides an opportunity for the country to secure a certain share of the technology value chain, rather than import all of the necessary equipment and technological components. It is encouraging that energy efficiency and renewable energy were identified as one of Moldova’s priorities in the EU Smart Specialisation Platform. However, the reduced state funding of research and development over the last several years is of concern. To enhance the relevance of energy technology R&D to the energy policy priorities, it is important to maintain adequate funding and to improve the cooperation of research institutions and scientists with public authorities. This can be done, for example, by establishing a joint scientific and technical council for setting up specific tasks on energy RD&D with subsequent project financing of the necessary developments.

The vulnerabilities of the energy sector to climate change, as well as related challenges and opportunities are recognised in the Moldovan official documents submitted to the UNFCCC. It is encouraging that the government is planning to update the Climate Change Adaptation Strategy that was approved in 2014. Further efforts could be made to ensure that the energy policy integrates the possible impacts of climate change on the development of energy supply and demand trends, such as increased summer demand due to air conditioning, possible decrease of biomass use and increase in solar and wind energy.

The government has also made substantial reforms in the area of environmental protection, which can influence energy sector operations. Following the adoption in 2014 of the Environmental Strategy for the years 2014-2023, institutional reforms have been implemented and several new laws and regulations have been enacted related to Environmental Impact Assessments and air quality, among other areas. More efforts could be given to the integration of environmental policies into sectoral policies, such as energy and transport.

The 2015 IEA review encouraged the Republic of Moldova to “continue to develop improved energy statistics and the collection of accurate data relative to consumption, renewable energy production and energy efficiency indicators.” Since then, energy data collection has expanded to cover new relevant topics for data users. In parallel, public access to user-friendly energy information has improved.

The NBS is commended for its efforts to share energy statistics in a timely manner with international organisations, to present Moldova’s energy balance in accordance with international standards and to translate international best practices into national documentation.

Moldova has started to develop energy efficiency indicators to track progress towards its energy policy goals., The relevant stakeholders are encouraged to continue cooperation to produce an expanded set of such indicators for all consuming sectors (residential, industry, services and transport) in order to monitor the impact of the EE actions taken by the Government To contribute to the work of other public entities and gain public support for energy efficiency measures, the data and analysis on energy efficiency should be communicated to the public.

Continued development of digital reporting is another praiseworthy accomplishment, which is expected to reduce the burden on respondents and simplify data exchange between public and private institutes.

The Government of Moldova should:

Enhance the institutional capacity and the staffing of the state bodies responsible for energy policy development and implementation and improve coordination and cooperation between them.

Further improve energy security through regional cooperation, regional market integration, diversification of routes/sources of supply in gas and electricity sectors and continue providing suitable conditions for developing local energy infrastructure and increasing energy efficiency.

In updating energy strategy and setting up specific targets, enhance institutional capacity in energy data collection, modelling and forecasting, resource assessment, and system integration of renewable energy to allow informed decision-making.

Continue the efforts – in cooperation with the energy regulator – to develop free, liberalised, competitive energy markets:

  • Accelerate the implementation of the legislation and regulations to transpose the provisions of the Third Energy Package.
  • Ensure transparent and fair market rules and minimise state interference in the market operations.

Strengthen the independence, transparency and accountability of the Regulator (ANRE) to make sure it can adopt regulatory practices and methodologies that enable the much-needed private sector investments in the energy sector infrastructure without putting additional pressure on the state budget.

Make sure that vulnerable energy customers are protected by efficient targeted social protection measures.

Enhance the relationship between the energy policies and climate change, environmental and RD&D policies, and strengthen cooperation between the public and private stakeholders, civil society and academia, including through effective permanent working groups and policy dialogue.

Reinforce the public-private dialogue on energy policy matters and develop a communication strategy for sector stakeholders and population on energy strategy and challenges for/ benefits of the ongoing reforms.

Further develop national energy statistics to improve the data quality and to inform policy decisions:

  • Ensure that the development of the unified electronic data reporting portal objectively reduces the burden on respondents, respects the confidentiality of the data and allows for amending the forms based on current needs. Transferring the responsibility of the active portal to the National Bureau of Statistics (NBS) would allow for independent amendments and compliance with the principle of confidentiality.
  • Liaise with the EEA and NBS to ensure that appropriate data are available for energy planning and for the development of energy efficiency indicators (e.g. gross value added by manufacturing subsector, building stock and transport activity data).

Eurostat (2020), Shares (Renewables), https://ec.europa.eu/eurostat/web/energy/data/shares (accessed 30 May 2022)

IEA (2015), Energy Policies Beyond IEA Countries: Caspian and Black Sea Regions, International Energy Agency, Paris, https://www.iea.org/reports/energy-policies-beyond-iea-countries-eastern-europe-caucasus-and-central-asia-2015

RoM (Republic of Moldova) (2021), Official website of the Republic of Moldova, https://moldova.md/en (accessed14 May 2021). 

  1. In this publication, the statistical data related to the energy sector refer to the Republic of Moldova without Transnistria. The breakaway region of Transnistria, a strip of land between the Dniester River and the eastern Moldovan border with Ukraine, is not recognised by United Nations (UN) states. The Moldovan government considers Transnistria to be a territorial administrative unit with a special status, which is part of the Republic of Moldova, but not controlled by its government (RoM [Republic of Moldova], 2021).

  2. Acquis communautaire (French): The body of Community legislation by which all EU member states are bound.

    Countries joining the EU must have implemented the existing acquis communautaire by the time of accession.

  3. The European Union's Third Energy Package is the energy market legislation for an internal gas and electricity market in the European Union that was adopted in 2009. The package aims at accelerating investments in energy infrastructure to enhance cross border trade and access to diversified sources of energy. It covers the following areas: unbundling, independent regulators, cross-border cooperation and open and fair retail markets. 

  4. The EU4Energy region includes the following countries taking part in the EU4Energy Programme: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan​

  5. The gas transmission, distribution and supply entities in Transnistria are a part of the Moldovagaz structure. The gas supplied through Moldovagaz to Transnistrian consumers (including the Moldova GRES) is not paid for and the collections go to the local budget.