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.
|Moldova's energy subsidy reform: key analytical premises|
|Measuring energy poverty and ways to protect vulnerable groups in the European Union|
|Moldova's energy prices and energy affordability|
|Avoiding energy poverty in Moldova|
|Modelling the impacts of energy subsidy reform in Moldova|
|Conclusions and recommendations for Moldova|