“For about 30 years, water losses are about 60% – these are physical losses and thefts.” This was stated by the economic adviser of the Bulgarian Chamber of Commerce Shteryo Nozharov on Nova TV.
“Any increase in the price must be accompanied by a reduction in these losses. Because otherwise this increase is not justified,” he added.
“For the price of gas, about 25,000 companies will be affected. The latest increase is 14%, but in the long run it will be about 25%. It will burden sectors that are important to the population. This increase is quite high for business,” he said.
According to him, the biggest problem is the lack of predictability. “The increase for May was determined with a very long delay. It is not known what the prices will be in the coming months. We are also counting on the gas from the prime minister’s agreement with the United States.
Problems with energy prices began long before February. The war only complicated the problem, did not cause it. “Problems with market liberalization began last summer with electricity prices,” he added.
According to him, the government can react by diversifying gas supplies.
“The government could have foreseen that. Private companies have reserved, respectively the state structures have not reserved quantities. We could move towards rapid diversification with our partners from Romania and Greece. At the moment, he can take such measures, but with a significant delay, “he added.
“For the business, the bigger problem is electricity prices, but an additional problem is the price of gas. All essential goods are expected to rise in price. Lack of predictability forces businesses to enter into contracts for high supply prices. insurance against the surprising cost of resources. Lack of predictability is a bigger factor in price increases than physical growth, “Nozharov said.
“What the business wants – support measures to continue as needed. Currently, companies include a resource to insure,” he said.
According to him, in the protest, which they announced for May 18, it is not known how many people will join, but only the 5 nationally recognized employers’ organizations represent 86% of Bulgaria’s GDP and somewhere 77-78% of workers in general.
“The non-household consumers affected by the price of electricity are 633 thousand companies in this energy market. The protest is also supported by the unions. Employers are not happy with the intensity of dialogue with the government,” the expert said.
“Eliminating VAT on energy goods does not solve the problem. In the case of excise at a price of BGN 360, this would reduce the price by about BGN 2, and for VAT – different companies work according to competition,” he calculated.
“The Romanian example is a good example. There is support from the state. Why not with us, when we have force majeure circumstances – first the pandemic, and then the war,” he asked rhetorically.
According to him, what the government can do to cancel the protest is the intensity of the dialogue. In recent days, none of these expert meetings has been realized with the active participation of business. There is no dialogue, which leads to a lack of predictability, and the business is working for a long time, “Nozharov said.
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