Energy Crisis

Bulgaria extends subsidies for businesses to pay high electricity, gas prices

Bulgaria extends subsidies for businesses to pay high electricity, gas prices

Rime Minister Kiril Petkov (photo: Bulgarian government)

Published

May 17, 2022

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Published:

May 17, 2022

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Companies in Bulgaria will continue to receive subsidies for paying electricity and natural gas bills in May and June.

The Bulgarian government, employers, and unions have agreed in a meeting on compensation for high energy prices, the government said.

For May and June the support will be equal to 80% of the difference between BGN 200 (EUR 101.8) per MWh and the electricity price paid by the company receiving the subsidy. The previous limit was BGN 185.59 (EUR 94.16) per MWh.

For natural gas, companies will get full compensation for the difference above the April prices, said Minister of Energy Alexander Nikolov.

The government is preparing a long-term support mechanism for businesses

Of note, the country started introducing subsidies for businesses in September last year. The government earlier said that the total amount distributed to businesses, energy companies, and consumers was set to reach EUR 1 billion for the entire winter season.

Apart from these short-term measures, the government is working with trade unions and employers to draft legislative solutions for a long-term support mechanism. The proposals should become a reality in the coming weeks with the intention to create predictability for businesses in the event of market volatility, the ministry said.

According to the ministry, from July 1 Bulgaria will be receiving the agreed amounts of natural gas from Azerbaijan, of 1 billion cubic meters per year.

This will happen regardless of whether the interconnection Greece – Bulgaria is finished and put into operation, said the Prime Minister Kiril Petkov, adding that all possible alternative routes will be used for shipping the deliveries to Bulgaria.

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