site.btaState Budget to Offset Electricity System Security Fund Deficit - Energy Minister

Meeting on Wednesday, Bulgaria's caretaker Cabinet adopted a decision according to which the deficit in the Electricity System Security Fund (ESSF) will be offset by the State budget, Energy Minister Vladimir Malinov told a news briefing at the Council of Ministers.

The ESSF deficit amounts to BGN 449 million as of May 28 and is expected to reach some BGN 50 million until the end of the regulatory period, Malinov specified.

The ESSF was established to cover the costs of the public electricity provided in respect of household customers and to cover the costs of the producers of electricity from renewable sources. The Fund's surplus in the 2021-2022 period was spent on offsetting the high prices of electricity and natural gas according to Council of Ministers decisions and programmes. In the current regulatory period (between July 1, 2023 and July 1, 2024), the Fund's expenditures have significantly exceeded its revenues, the Energy Minister explained.

Wednesday's decision will enable the Energy and Water Regulatory Commission not to increase the price of household electricity for the next regulatory period in order to offset the ESSF deficit, Malinov said further.

He was adamant that the budget allocation will offset the entire deficit that the Fund has built up, but its final amount can be identified only after the end of the current regulatory period. "The Council of Ministers decision gives the Fund until July 30 to submit a to-the-point analysis regarding the exact amount of the deficit accumulated by the end of the regulatory period," the Minister pointed out. Based on this analysis, he will propose measures and the Government will adopt a decree on offsetting the deficit within the framework of the budget year 2024.