site.btaParliament Rejects Proposal to Abolish Price Caps for Electricity Producers

The cap on electricity producers' revenues and compensation for companies' costs above a certain limit will continue to apply in 2024, MPs decided on Thursday, voting state budget bill texts on the second reading.

Parliament rejected the proposal of Vladislav Penev (CC-DB) with 32 votes in favour, 112 against, and 50 abstentions.

Electricity price caps were introduced at the beginning of Russia's war against Ukraine, when electricity prices exploded, Panev said, defending his proposal. 

Finance Minister Assen Vassilev thanked Parliament for not supporting the proposal for the abolishment of the price cap. "If this proposal had been supported, the price ceilings for all Bulgarian industrial producers of electricity, which are currently at BGN 200, would have been abolished. All Bulgarian industrial consumers would have been at risk of paying electricity above BGN 200 and this would have reignited inflation and impeded eurozone membership," Vassilev said.