site.btaBulgarian Industrial Capital Association Expects Brussels to Compensate Southeastern European Countries for High Electricity Prices

Bulgarian Industrial Capital Association (BICA) Board of Directors Chair Vasil Velev called on the European Commission to compensate the countries of Southeastern Europe for high electricity prices for non-household consumers, BICA reported on Friday.

Velev met with MEP Tsvetelina Penkova, President of the Brussels-based European Energy Forum, to discuss sustainable solutions to the challenges to Bulgarian industry related to high electricity prices for non-household consumers.

Velev commented: "European business sources estimate that by 2050 electricity production costs in the EU will exceed those in the United and States and China by at least 50%. This makes European companies uncompetitive to US and Chinese enterprises and should shine a very bright warning light for the entire EU. We need urgent measures at the European level, an all-European compensatory mechanism, extra compensations for the countries of Southeastern Europe and postponement of the industry-stifling Green Deal regulations on non-financial reporting, which are arguably unnecessary and are targeted by the European People's Party."

The employer organization finds it critically important for Bulgaria to establish a national compensatory mechanism for high non-household electricity prices by a permanent law which can be set on and off automatically when a price crisis starts and ends. "This is crucial for making it safe for companies to invest in Bulgaria," Velev argued.

The future national mechanism could use a lower electricity price limit of BGN 60 per MWh, below which non-household electricity consumers will pay contributions to the Electricity System Security Fund (ESSF) while electricity producers will receive compensations, and an upper limit of BGN 180 per MWh, above which contributions to the ESSF will be paid by electricity producers while compensations will be granted to non-household consumers, BICA proposes.

Penkova said: "From now on, all approaches should be pro-active and aligned with our European partners so that we can ensure energy stability and security." She vowed to continue to raise these issues before national and EU institutions and to insist for concrete and urgent actions in support of Bulgarian businesses and the country's economy.

Explaining his call on the European Commission to compensate the countries of Southeastern Europe for the high prices of electricity, Velev said these nations bear all negative consequences of imperfect pricing on the European electricity market and poor connectivity with Western and Northern Europe, and are alone in helping Ukraine and Moldova offset their electricity shortages.

Velev plans to refer the issue to Bulgarian EU Commissioner Ekaterina Zaharieva, who is responsible for Startups, Research and Innovation in the European Commission, and also to the European Parliament, the European Economic and Social Committee, the European Committee of the Regions, the European Energy Forum, SGI Europe, the International Trade Union Confederation and the Bulgarian Ministry of Energy.

Velev and Penkova reviewed Bulgaria's commitments under the EU Green Deal and their adverse impact on the competitiveness of Bulgarian enterprises. They concurred on the need for urgent measures to recalibrate the Green Deal and to compensate Bulgarian enterprises for phasing out traditional energy resources and losing markets.