The electricity market will become more organized, more transparent and coupled to European markets, these are the basic provisions of the amendments to the Law No. 107/2016 on electricity, adopted today by the Cabinet of Ministers.

The legislative initiative promoted by the Ministry of Energy contains new articles that refer to the criteria for designating the operator of the electricity market (power exchange). This will make it possible to organize the day-ahead market, day-ahead market, centralized market of bilateral contracts, and in the perspective, it will be ensured the coupling of the local electricity market with similar integrated markets at the European level.

Another set of amendments transposes into national legislation the European standards on the integrity and transparency of the electricity market and the avoidance of possible manipulation of the electricity market, so that, when the regulator finds abusive behavior of electricity market participants, it is able to apply sanctions that correspond to the violation detected and the damage caused. To this end, the National Agency for Energy Regulation (ANRE) will be given additional powers to monitor, investigate and sanction wholesale electricity market participants that engage in abusive and irregular behavior.

The detection and management of possible exceptional situations in the electricity sector are also regulated. The regulator will thus be able to intervene promptly to identify and remove possible malfunctions by mitigating their effects.

Once the legislative amendments are voted, ANRE will have the following tools at its disposal:

(a) temporary suspension of the operation of the relevant market until the dysfunction is removed;

b) temporarily limit or prohibit the export of electricity;
(c) the establishment of a public service obligation to sell electricity in quantities and at

regulated prices;
(d) the imposition of a public service obligation for the centralized purchase of electricity

required from universal and last resort service providers and system operators, through tendering or direct negotiation;

(e) obliging one or more electricity generators to participate in the balancing electricity market and the market for system services or to provide balancing and system services in regulated quantities and at regulated prices.

Some of these provisions are covered by the provisions of the Commission for Exceptional Situations and are thus also included in the basic law.

The proposed amendments are intended to ensure that consumers and other market participants can have confidence in the integrity of the electricity market, that prices set on wholesale energy markets reflect the balance between supply and demand and that profits cannot be made through market abuse.

The draft law has been prepared with the support of the EU High Advisers Mission assisting the Government of the Republic of Moldova and has been widely consulted with all stakeholders in the electricity market.