Bulgarian government to subsidize electricity price for industrial consumers

Bulgaria’s interim government has proposed a payment of EUR 330 million in subsidies to all companies in the country to ease the pressure of high electricity prices.

Electricity prices in Bulgaria, as well as in all of Europe, are at record highs. Spain was one of the first countries that introduced measures to help consumers. In Bulgaria, power prices have increased 72% from the beginning of the year, and today the price on the day-ahead market of the national power exchange IBEX is at EUR 133 per MWh. Prices for households are regulated and they are currently set to remain at EUR 57 per MWh by the end of the year.

In its draft budget for 2022, the government proposed that every company should receive EUR 26 per MWh consumed in the first six months of next year. The bill must be adopted by the national parliament, which should be convened after the elections scheduled for November 14.

After the November elections, the new parliament will need to vote on the budget bill

The measure could be implemented earlier if the new parliament decides to amend the budget for this year.

The government also decided to change the rules for trading electricity at the IBEX exchange to make the market more transparent.

Caretaker Prime Minister Stefan Yanev pointed to international factors with regard to the spike in electricity prices.

Bulgaria’s energy strategy is outdated, said Yanev, and called for an expert discussion on the future of nuclear power plant Belene, Bulgarian National Radio reported.

Prices of electricity, heating and hot water will not be changed before the end of the year, Chairman of the Energy and Water Regulatory Commission Ivan Ivanov said.