site.btaEnergy Minister Nikolov: Shock Electricity Price for Businesses Has Not Materialized Yet

January 4 (BTA) - "The shock increase of the price of
electricity, anticipated by the business, with prices of over
700 leva per MWh, is not a fact for the moment," said Energy
Minister Alexander Nikolov on Tuesday in response to demands to
scrap the compensation cap of 30 per cent of the actual market
price.

Earlier in the day the nationally representative employer
organizations in an open letter said that the measures proposed
by the government are ineffective in view of the situation with
the prices of natural gas and electricity in economies which are
 competitors of Bulgaria. The scheme for electricity
compensation for non-household consumers capped at 30 per cent
of the market price renders meaningless promises that that
businesses will be compensated with 75 per cent of the
difference between the market price in July 2021 (185.59 lv/MWh)
 and the actual market price for the respective month if the
price is higher than 300 lv/MWh.

"With prices of 800 lv/MWh the compensation will be equal to 240
 lv/MWh and business will have to pay an intolerable 560 leva
per MWh. In such a situation many first echelon and key
structural enterprises will have to suspend operation," said the
 employer organizations.

In the open letter they call for an urgent meeting with Prime
Minister Kiril Petkov to discuss "the extremely critical to the
economy and the social peace situation". RY/PP


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