Bulgaria, The imposed price cap crushed a very well-balanced decision of KEVR

, SEE Energy News

Chairman of the Bulgarian Commission for Energy and Water Regulation (KEVR) Ivan Ivanov said that Bulgarian Prime Minister Kiril Petkov should respect the regulator’s independence, expressing his disbelief for the Government’s lack of interest in KEVR’s decision on energy prices and what the disadvantages of the price cap on electricity, gas and heating prices are.

According to Ivanov, the imposed price cap crushed a very well-balanced decision of KEVR and consumers will pay dearly for it once it is lifted. The initial estimates for electricity showed that the price should have increased by 64 %, but KEVR used legal regulatory instruments and reduced that increase to 11 %. At a meeting with caretaker Prime Minister Stefan Yanev, KEVR proposed a reduction of the VAT on energy to 10 from 20 % for a period of three to four months. This step would have led to an increase of electricity prices for households by 1 to 3 % on average, thus solving the issue for residential consumers without a price cap.

When it comes to heating prices, the Government will do everything within its power to avoid dissatisfaction among the citizens, said Ivanov,
adding that the state financial of heating utilities is very bad.

Ivanov said that he is expecting a letter from the European Commission commenting on these actions taken by the Bulgarian Prime Minister. The Commission has not been informed about these measures by the regulator, but by nongovernmental organizations in the energy sector.