The Prime Minister Kiril Petkov, the Deputy Prime Minister for EU Funds and Minister of Finance Asen Vassilev and the Minister of Energy Alexander Nikolov at a meeting with representatives of employers’ organizations and trade unions in the Council of Ministers. It discusses the compensation scheme for May, as well as legislative proposals related to the Energy Act, the Council of Ministers announced.
The government is proposing the following measures:
1. Short-term measures – compensations for the month of May at high electricity prices – 85% of the increase in the price of electricity over BGN 225. No ceiling! According to current data from the BNB, this means that in May the compensation for the business will exceed BGN 160 / MWh, which is above the amounts paid so far.
2. Short-term measures for natural gas prices – The government has provided the necessary quantities for both Bulgarian business and the public supplier. The price achieved in May was 14.3% higher than in April. In view of this, the government will apply the full amount of compensation from April + 100% of the price increase in May. That is, the price for both Bulgarian citizens and businesses in May compared to April will be the same as before the decision taken by Gazprom Export to suspend supplies to Bulgaria.
3. Long-term measures through legislative proposals – automation of the process of compensating Bulgarian businesses for high electricity prices – legal changes to finance the Electricity System Security Fund – payment of “excess profits” from companies under BEH, as well as contracts for difference with consumers who receive a guaranteed return on current contracts with the state. In this way, the business will receive the corresponding amounts on a monthly basis in case the market instability continues.
If necessary and in case of continuing difficulties with the supply of natural gas, such measures will be considered to compensate for these costs, but from the state budget, the press release of the Council of Ministers said.
