site.btaEmployers, Energy Regulator Discuss Electricity Price, Do Not Come to Specific Terms

Employers, Energy Regulator Discuss Electricity Price, Do Not Come to Specific Terms

Sofia, October 15 (BTA) - Representatives of the four nationally representative employers' organizations in Bulgaria and senior officials of the Energy and Water Regulatory Commission (EWRC) conferred on Wednesday to discuss the electricity price for business customers but failed to reach specific arrangements, it emerged from their statements for the media after the meeting.

The employers presented their proposals for a reduction of the public obligation surcharge, which was set at 38 leva/MWh for both household and non-household users, effective August 1, 2015. Until then, the surcharge was 18.93 leva for non-household users and 40.21 leva for household users. The EWRC will consider the proposals and, if it finds untapped reserves for a price cut, will come up with a new pricing decision as from November 1.

"I am disappointed with the meeting, we failed to reach more serious to-the-point solutions, we have consensus on less important matters," Confederation of Employers and Industrialists in Bulgaria Board Chairman Kiril Domouschiev commented to journalists. "I learnt that the EWRC is unable to do anything, it lacks administrative capacity and the resources necessary to carry out its activity in full scope the way we expect it," he added. In his words, the Commission "merely rubberstamps bills coming from NEK [the National Electricity Company], renewable energy sources, high-efficiency cogenerations and US-owned power plants. The way things are going, we will obviously have to protest because the future is bleak, exports are shrinking, the only thing that is growing is the grey economy." he argued.

Bulgarian Industrial Capital Association President Vassil Velev said that the employers submitted to the EWRC their estimates, according to which the electricity price for industrial users can be cut back to its pre-August 1 level. He sees reserves for this in the reduction of the natural gas price and the inclusion of proceeds from electricity exports in the public obligation surcharge which would bring it down. "We insist that the decrease of the natural gas price translate into a reduction of the feed-in tariffs paid to the cogenerations and electricity producers from renewable energy sources," Velev added. "If the State has agreed to make a present to the two US-owned power plants in the Maritsa East complex, let it make it from the state budget and not from the electricity price because this makes Bulgarian industry non-competitive," he insisted. He was referring to AES Maritza East 1 TPP and ContourGlobal Maritsa East 3 TPP.

"We agreed on getting an answer from the EWRC to our proposals, including an amendment of legislation, setting ourselves the joint task of bringing the public obligation surcharge down to an average European level, because it is now the highest in Bulgaria," Velev explained.

EWRC Chair Ivan Ivanov singled out, as the most important result of the meeting, "the establishing of a dialogue between the EWRC and the employers' organizations." "The only ground for a review of the price for the time being is the cheapening of natural gas," Ivanov said.