Bulgaria, Energy Ministry proposes rising compensation ceiling price

, SEE Energy News

Bulgarian Ministry of Energy has proposed an increase of the state aid ceiling for non-household consumers of electricity from 128.4 to 154 euros/ MWh as of 1 April.

Earlier this week, the Government said that it will continue compensating the business in April. The scheme remains the same аt 75 % of the difference between the real market price for the respective month on the day-ahead market of the Independent Bulgarian Energy Exchange (IBEX) and the real market price for July 2021 (94.7 euros/MWh). All 633,000 non-household consumers who are supplied with electricity from the free market will be able to benefit from the aid.

The continuation of compensations in April and the increase of the aid ceiling are among the measures with which the Government addresses the consequences of the unprecedented rise in electricity prices and aims to reduce the inflationary pressure on consumers.

The state and the business agreed on forming a working group of stakeholders by the end of March, which will propose within a month medium – and long-term solutions for predictability of the electricity market in Bulgaria.

The Energy Ministry recalled that the aid being provided to businesses to offset high electricity prices began in October 2021, and different types of customers were included gradually – industry, network operators due to their technological costs, as well as natural gas consumers. The amounts paid for electricity alone are expected to almost 720 million euros by the end of March: 230 million euros for October and November, 235 million for December and January and 270 million euros for February and March.