site.btaEmployers Organizations Warn that New Price of Electricity Will Cause Loss of Jobs, Push Up Retail Prices

Employers Organizations Warn that New Price of Electricity Will Cause Loss of Jobs, Push Up Retail Prices

Sofia, August 2 (BTA) - The increase of the price of electricity for industrial consumers will lead to lower incomes, loss of jobs and higher retail prices, which will be felt already in the coming months, Chairman of the Association of Industrial Capital in Bulgaria Vassil Velev told a BTA-hosted news conference on Sunday. The event was attended by representatives of the nationally representative employers organizations and trade unions: the Bulgarian Industrial Association, the Bulgarian Chamber of Commerce and Industry, the Confederation of Employers and Industrialists in Bulgaria, the Confederation of Independent Trade Unions in Bulgaria and the Podkrepa Labour Confederation.

The new price became effective on August 1. As of the same date, the public obligation surcharge to electricity prices was equalized for both household and industrial consumers.

Velev described as "blatant manipulation" the implications that until the equalization, household consumers paid a higher public obligation surcharge than industrial ones. He said it was "inadmissible" to make such an opposition.

The joint proposals of employers and trade unions are for Parliament to impose a moratorium on the joining of any producers which sell electricity at preferential prices, to review the latest amendments to the Energy Act and to create a roadmap of reforms in the sector. If these demands are not heeded, employers and trade unions said they are holding national protest actions in September. They are also discussing the idea to demand the resignation of head of the Electricity and Water Regulatory Commission Ivan Ivanov.

Bulgarian Industrial Association deputy head Kamen Kolev said that the new price will mainly hit small- and medium-sized enterprises.

Confederation of Employers and Industrialists in Bulgaria Chairman Kiril Domouschiev said the employers organizations urge for market principles in the energy sector, for putting an end to misuse and thefts. He said that the public obligation surcharge in the EU is the highest in Bulgaria and Denmark.

The trade unions pledged support to the business and readiness to take part in the planned protests.

Commenting the new electricity prices in Sliven, Southern Bulgaria, on Sunday, Prime Minister Boyko Borissov said that the higher prices of electricity for the business will not increase the prices of staple goods. Approached by a reporter, Borissov said this will not happen because the market regulates the prices. The Prime Minister said that many ill-advised moves were made in the sector in the past twenty years and once again recalled the debt of the National Electricity Company. He also said that the government undertook a number of measures to limit the losses. Borissov said that control was missing in the link between the facilities with renewable energy sources and the electricity-distribution companies, so that a new unit is going to be set up comprising representatives of the prosecuting magistracy and the State Agency for National Security who "will monitor the movement of the invoices".