Bulgaria, Government committed to extend the compensation mechanism until the end of April

, SEE Energy News

The Association of Bulgarian Employers’ Organizations (AOBR) sent a letter to Prime Minister Kiril Petkov claiming that the Government has failed to fulfill its commitments made in mid- March to compensate businesses for high energy prices. The letter calls for urgent measures to overcome the problems on the energy market.

On 14 March, following a meeting with the AOBR representatives, the Government committed to extend the compensation mechanism until the end of April 2022 with a raised ceiling of 150 euros/ MWh and to elaborate a mechanism guaranteeing long-term electricity supply at accessible prices for the 633,000 consumers on the free market, planned to go into operation on 1 May.

At the same time, the forecasted drop in energy prices is not happening and there is no readiness to implement the promises made. Businesses across the entire country do not know what awaits them after 1 May. There is no time, and there is obviously no readiness on the Government’s part to fulfill the commitment made, the letter reads.

AOBR requests the immediate extension of the existing mechanism for compensating businesses with a reference price of 94.7 euros/MWh and a ceiling of 150 euros/MWh, until a working decision is found to stabilize the market with the employers’ approval. Unless the Government takes immediate action, AOBR will hold a national protest in early May demanding the Government’s resignation.