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Home NewsAnalysisEventsJoint Statement of Bulgarian electricity distribution companies and the Bulgarian state Electricity System Operator

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Joint Statement of Bulgarian electricity distribution companies and the Bulgarian state Electricity System Operator

Joint Statement of Bulgarian electricity distribution companies and the Bulgarian state Electricity System Operator

In relation to National Assembly Decision, dated 15 Dec 2021, to impose a moratorium on prices of electricity, water supply and sewerage services and thermal energy, the Bulgarian electricity distribution companies and the Electricity System Operator express unequivocally our objection to the attempts of implementing state social policy via mechanisms involving electricity price artificial containment. Support to households and vulnerable social groups, affected by energy services prices, is to be provided by the appropriate means and tools set forth in the relevant legislation regulating Ministry of Labour and Social Policy operations.

It is important to emphasise that EWRC estimates on electricity price change, coming into force on 1 Jan 2022, will not lead to increase in network operators’ revenues because pricing calculations incorporate values of services, paid by electricity distribution companies and Electricity System Operator to power producers.

Last but not least, we should, yet again, ‘blow the whistle’ about all network operators in the country because since September this year, they have been facing a serious liquidity crisis caused by electricity price surge at the exchange market where they purchase electricity for their technological needs. There is an imminent danger of rendering the generation-transmission-distribution-supply chain incapable of performing on payments. Under threat is also the implementation of investment and repair programmes of network operators.

All this puts in jeopardy and eventual collapse the entire electricity system, ergo, the entire Bulgarian economy.

As purchasers of electricity at the exchange for covering the technological costs, network operators are the sole end-users that did not receive a compensation of BGN 110 per MW/h. This compromises the measure and turns it into a state aid for a target group, which is in violation of level-playing-field market principles.

We trust that the coming days will witness our joined efforts and constructive dialog aimed at finding a solution that will tackle the crisis in the sector, secure a non-interrupted electricity supply, and provide effective protection of energy vulnerable consumers.

Sincerely yours,

Angelin Tsachev      Karel Kral                      Alexander Sipek        Angel Angelov
ESO EAD                  CEZ Bulgaria EAD       EVN Bulgaria AD      Energo-Pro Varna EAD

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