The parliamentary Energy Committee on Wednesday voted, 11-3 with no abstentions, to move October 23, 2023 amendments to the Energy Act unrevised to the full house. On October 19, President Rumen Radev vetoed these amendments which envisage full liberalization of the electricity market for household consumers by 2026.
The reasons for the veto, read out at the Committee meeting by the President's Secretary for Legal Affairs Krum Zarkov, stressed that the law has been distanced from the goals of the social state and that its adoption was not accompanied by a full impact assessment, despite the fact that it introduced provisions directly affecting the welfare of Bulgarian citizens and the sustainability of the energy system.
The reasons argued that the law proposes the regulation of a transitional market model, which will enter into force in July 2024 by compensating domestic consumers and will be in force until the introduction of full liberalization of the retail market, i.e. until the end of 2025. However, there is currently still a significant price differential between the regulated and free electricity markets. A real rebalancing of regulated prices to bring them in line with free market prices should take place within a short period of 18 months, which risks leading to a sharp price spike for final household customers by the beginning of 2026, Zarkov argued.
BSP for Bulgaria MP Dragomir Stoynev said that the President's reasons cover the opposition's concerns. He added that his parliamentary group would support the veto.
Continue the Change - Democratic Bulgaria MP Radoslav Ribarski expressed belief that the veto should not be considered in Parliament on Friday but after the elections. "If the model that was applied to businesses is applied to household consumers, it will be successful and will not increase the price of electricity for households," he argued.
Vazrazhdane MP Yordan Todorov estimated that the prices of energy futures after 2026, when the compensation will not apply, will be BGN 250 per megawatt-hour.
There Is Such a People MP Pavela Mitova stated that the overall market liberalization policy, which is being implemented with these changes in the Energy Act, contradicts the logic for protecting citizens.
Energy Committee Chair and GERB-UDF MP Delyan Dobrev noted that he understood the President's reasons. "However, the problem is that our country is currently in a situation where the liberalization of the electricity market is hostage to the money under the National Recovery and Resilience Plan. If the changes provided for in this bill are not passed, the money under the Plan will not be disbursed. Yes, we have concerns too, but we have time to overcome them," he explained.
/RY/
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