site.btaEmployers' Association Urges Government to Do Something about Skyrocketing Electricity Prices, Threatens Protests

Sofia, August 4 (BTA) - In a letter to caretaker Prime Minister Stefan Yanev Wednesday, the Association of the Organizations of Bulgarian Employers (AOBE) asks the government to take urgent action to contain skyrocketing electricity prices. The organization says that the excessive electricity prices are forcing businesses to resort to stoppages and threatens national protests "to protect the interests of the hundreds of thousands working in the industrial sector in Bulgaria".

The average price on the day-ahead market segment on the Independent Bulgarian Energy Exchange on Wednesday was
132.07 euro/MWh and the total trades were for 72,557.30 MWh. On the intraday segment, the average price was 205.05 euro/MWh and the volume of trade was 8,573.10 MWh.

The price levels in the past three days were more than 50 per cent higher than in Germany, Italy, France and Austria, and on August 4 alone it was 70 per cent higher, the employers say.

''As responsible, nationally represented employers' organizations, we have repeatedly warned of the potential risks to the electricity market in Bulgaria. Alas, the limit of tolerance has already been passed and after discussions with the managements of major energy-intensive companies we inform you that we are starting a phased shutdown of production facilities, starting at 12 am on August 4, 2021,'' the letter to the Prime Minister reads.

The Association calls for urgent action by the Energy Ministry, the Bulgarian Energy Holding (BEH), the Electricity System Operator and the regulators to make sure the state-owned Maritsa East 2 power plant, which procuces cheap electricity, starts operating at full capacity; that temporary restrictions are set in place for electricity export; and that support is provided for the worst-hit energy-intensive industrial consumers.

According to BEH, three of the eight generating units of Maritsa East 2 are currently in operation and a fourth one is ready to be switched on.

The Association further says that the leaders of the competent state institutions have proven unable to cope with the crisis which is why the Prime Minister should ask them to resign and ensure resources to address the problems that prevent the normal functioning of the Bulgarian economy.

At a news briefing in Parliament on Wednesday, energy expert and MP Ivan Hinovski (There Is Such a Peope) said the expensive electricity was killing the Bulgarian industry. He said the price has gone through the roof due to low supply on the electricity marrket and called the supply shortage "artificial".

According to him the main problem was that Maritsa East 2 is working at a fraction of its full capacity. This power plant sells its output on the regulated market (for household users) where electricity is much cheaper than on the free market (for industrial and business users), or exports it.

Hinovski said that the Bulgarian Energy Holding, which is the owner of Maritsa East 2, is "oddly inactive" in this situation.

In a statement on the situation in the energy market, BEH said that the shortage in supply is caused by export. The power generating facilities currently in operation have a total capacity of 5,800 MW and the export stands at some 900 MWh, said BEH.

It said further than its daughter companies have operational independence and that it has no power to influence their market behavior. RY/DT/LN/