Every sector, whether heat, electricity or gas distribution, has high future investment needs, which makes it important to attract capital with a fair return. Through ANRE, the government of Moldova has several options for inducing subsidies: • not adjusting tariffs for an extended period, as was the case with natural gas tariffs between 2011 and 2015 • approving district heat and natural gas tariffs separately, which carried the risk that increased heat tariffs might lead to disconnections from the district heating system • approving the tariff using a weak definition of the rate of return. This puts centralised production of heat and electricity at a disadvantage compared to small-scale boilers.