Heat and electricity tariff-setting is based on a global good practice using rate-of-return methodology. Every sector - heat, electricity and gas distribution - has high investment needs, and therefore, attracting capital with a fair return is necessary. For example, in 2015, ANRE approved transport and internal distribution costs of natural gas at MDL 1 551.00 per 1 000 m3, as compared with MDL 616.92 per 1 000 m3 in 2011. This threefold increase in the costs of transport and internal distribution in the span of four years is significant (inflation in the period was only 27.12%) and suggests that in 2011, transport and internal distribution costs were set at a level that did not allow for proper cost recovery and an appropriate rate of return.