Footnote:
Europe and Central Asia
Moldova
English
en_US
Description:
The objective of the study is to: (i) assess the adequacy of the existing heat and electricity tariff levels for achieving financial viability of the energy sector operators; (ii) analyze the distributional implications of energy tariff increases; and (iii) assess the effectiveness of the existing social assistance programs and how to adjust them to mitigate the impact of energy tariff increase on the poor This report presents the key findings and recommendations for the Government of Moldova as well as other energy sector stakeholders. The report starts with a synopsis that summarizes the key findings and recommendations. The main report section starts with an introduction to country context, presents the design of tariff setting methodologies, and assesses the adequacy of tariffs based on constructed scenarios. Thereafter analysis of the distributional impact of projected range of tariff increases and the need to adjust the social assistance programs to mitigate the impact on the poor are presented. The report concludes with recommendations for the government on actions to be implemented on tariff setting methodologies and social assistance as well as areas for further research. Appendices include further background information of the analysis