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Energy Subsidy Reform in the Republic of Moldova

Energy Affordability, Fiscal and Environmental Impacts

image of Energy Subsidy Reform in the Republic of Moldova

This report looks at the fiscal, environmental and social impacts of energy subsidy reform in Moldova with a particular focus on energy affordability. Reduced value added tax (VAT) rate on natural gas consumption and a VAT exemption on electricity and heat consumption by domestic users represent the largest fossil-fuel consumer subsidies in Moldova. Reforming these will imply an increase of the VAT rate, which will lead to an increase of gas, electricity and heat tariffs for households, and will in turn affect household consumption levels, related expenditures and energy affordability. If reform measures are to work, they will need to be accompanied by a carefully-designed social policy to protect poor households.

English Romanian

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Avoiding energy poverty in Moldova

Based on the review of measures aimed at protecting customers at risk of energy poverty that are used in the European Union and elsewhere, this chapter identifies possible measures that can be implemented in Moldova. The advantages and disadvantages of these measures are then analysed in detail. As a result, six compensation measures are selected for further modelling and analysis.

English Romanian

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