2024-08-01 13:12:39
The cabinet adopted a program for compensation of non-domestic end customers of electricity in case of expensive electricity. The National Assembly tasked the government with its decision of July 26 to prepare the document within 7 days.
Businesses and other non-residential customers will receive compensation at exchange prices above BGN 180 per megawatt hour. They will be in the amount of 100% of the difference between the real average monthly exchange price for base load of the “day ahead” segment of the “Bulgarian Independent Energy Exchange” for the relevant month and the base price of BGN 180 per megawatt hour for non-domestic end customers, regardless in which network they are connected, the announcement of the government press office says.
The compensations are for the period from July 1, 2024 to December 31, 2024, subject to state aid rules. No compensation will be paid to non-residential end customers with prices below base. Customers whose price exceeds the base price by an amount less than the compensation amount will be compensated at a reduced rate per megawatt hour so that the resulting price after compensation is not less than the base price.
The funds for payment of the compensations are provided by the targeted contributions from electricity producers collected in the Electricity System Security Fund.
The program will compensate part of the electricity costs of non-domestic final customers, with the exception of the operators of the electricity transmission and distribution networks, for which a mechanism for compensation of non-reimbursable costs is regulated in the ZE, as well as for objects of final non-domestic customers that already receive compensation .
The new program is a measure to protect economic balances and macroeconomic stability by preserving the competitiveness of enterprises and limiting inflation, the announcement also states.
From the beginning of July 2024, there is a tendency to increase electricity prices on the free market in Bulgaria and the region. The average price of electricity in the country is the third highest in the EU after Hungary and Romania. The increase is a result of electricity shortages in some regional markets, reduced intersystem transmission capacities in the region, breakdowns and planned repairs of base capacities, as well as extreme temperatures.
High prices create an economically unfavorable environment, adversely affect industry and generate additional inflation, the government argued.