Sweden is contributing $US9.63 million to Moldova's Energy Vulnerability Reduction Fund (EVRF), through an agreement with the United Nations Development Programme (UNDP). The funds will enable the Government of Moldova to cover on-bill compensations in the 2023-2024 winter period for energy-vulnerable households. 

“In less than a year, Moldova has reshaped its energy politics and ended its dependency on Russian gas. This is remarkable. Sweden is a strong partner to Moldova on its path towards EU-integration. I am proud that Sweden for the second year in a row supports vulnerable Moldovan households by contributing via UNDP with a non-refundable grant to the Energy Vulnerability Reduction Fund of Moldova,” said Katarina Fried, Ambassador of Sweden to the Republic of Moldova.   

“This year, 91% of households receiving compensation on their energy bills will pay similar rates to last year. This would not have been possible without the support of our development partners, who are helping us face our challenges with dignity. I want to thank the Swedish Government for its generous financial support this year and also mention their significant contributions during the previous cold season. I look forward to continued fruitful cooperation with our Swedish friends, who support us on various social dimensions and contribute to the well-being of our citizens,” said Alexei Buzu, Minister of Labour and Social Protection.

In the 2022-2023 cold season, approx. 895,000 households benefitted from on-bill compensations. According to a UNDP impact assessment, the compensations reduced the level of energy poverty by 43% and had the greatest impact on the most vulnerable families; 83% of the costs for natural gas bills were compensated.

By the end of November 2023, more than 740,000 households have applied for compensation for the 2023-2024 heating season in the Energy Vulnerability Information System. 

“We are appreciative for the strong partnership and significant contribution of Sweden to the Energy Vulnerability Reduction Fund of Moldova. This funding, offered for the second cold season already, is coming to support families most affected by energy poverty,” said Daniela Gasparikova, UNDP Resident Representative to the Republic of Moldova.

Also in 2022-2023 cold season, UNDP has facilitated a $10 million contribution to EVRF from Sweden, and of $6.67 million – from Switzerland. 

Recently, Italy has signed an agreement with UNDP that includes €5 million contribution for on-bill compensations for the current heating season. 

The Energy Vulnerability Reduction Fund was established in 2022 by the Government of Moldova, with the support of the European Union, the Government of Slovakia and UNDP. 

Since then, UNDP and the European Union have supported the development and upgrading of the information system, as well as the training of social workers and librarians that help with the registration process, the creation and operation of the call centre, as well as the information campaign dedicated to the fund.