Bulgarian government subsidizes businesses with EUR 51 per MWh

Bulgaria’s interim government has decided to double the subsidies for the industrial consumers from EUR 26 to EUR 51 as relief for high electricity prices. It said it would start payments as soon as possible.

Almost a month ago, the interim government proposed to pay EUR 26 per MWh for the electricity that would be consumed in the first six months of next year. At the time, officials said the measure would need to be adopted as part of the draft budget for 2022 by the new parliament after the elections scheduled for November 14.

Aid for companies is increased from EUR 26 to EUR 51

Now the government has raised the subsidy to EUR 51 and revealed it would cover October and November. It said the compensation would be paid by the end of the year. Today the electricity price on the day-ahead market of national power exchange IBEX is EUR 219 per MWh, 85% higher than at the end of last year.

Caretaker Prime Minister Stefan Yanev said the government would compensate about 630,000 non-domestic end-consumers of electricity.

Subsidies will be paid to 630,000 consumers for October, and November

The subsidies will be granted automatically on the basis of a contract concluded between the Ministry of Energy and electricity traders, Investor.bg reported.

The scheme is expected to cost about EUR 230 million. It is intended to be financed from the profit of nuclear power plant Kozloduy.

The funds for aid are secured from the profit of nuclear power plant Kozloduy

Prime Minister Stefan Yanev said the government would continue to discuss the issues with businesses and trade unions.

Of note, Greece and Romania also decided to help companies cope with soaring power prices.