Bulgaria: EVN requests 15% electricity price increase from regulator, SEE Energy News
Electric utility EVN Bulgaria, subsidiary of Austria’s EVN, has requested from the State Energy and Water Regulatory Commission (SEWRC) that the power price for household consumers in its area of supply go up with 17.9% as of October 1.
7.2% of the price hike would go directly to the Bulgarian power incumbent NEK due to the artificially lowered power price for covering technical loses, a statement of EVN read. The steep price hike is aimed at “correcting the mistakes of previous regulatory pricing decisions”, Jorg Joerg Sollfelner, CEO of EVN Bulgaria explained additionally to Serbia Energy.
The steep price hike is aimed at “correcting the mistakes of previous regulatory pricing decisions”, Jorg Joerg Sollfelner, CEO of EVN Bulgaria said before Bulgarian media representatives Tuesday.
In 2013 electricity prices for households which are regulated by SEWRC were decreased on three occasions below the actual cost level, EVN argued. Furthermore the regulator cut the percentage of acknowledged technical loses to 8 percent, while the actual number is 10.8%. Highly restricted operational expenses, of which only 5 percent are meant for staff salaries, have hampered EVN’s ability to invest in grid maintenance, Sollfelner said, warning that the company might not be able to guarantee the security of supply, as well as planned upgrades to a higher percentage of underground power lines.
Sollfelner stressed that EVN made its calculations based on the current price it pays NEK
CEZ and Energo-Pro, subsidiaries of the Czech companies of the same names, are yet to announce the price correction they will request from the regulator.