The Association of Bulgarian Employers’ Organizations (AOBE) and the Minister of Energy Zhecho Stankov discussed the creation of special compensatory instruments that would be automatically activated in crisis situations with the price of electricity. The AOBE’s proposal is to develop two instruments – one universal for all non-household consumers and one special for energy-intensive companies.
For the AOBE, the instruments should be part of a mechanism that would be regulated in a permanent law and would be activated and deactivated automatically when price crises begin or stop. The aim of this mechanism is to guarantee predictability, sustainability and competitiveness in the medium term, thus encouraging investments in Bulgarian industry. According to the representatives of the employers’ organizations, it could also be the most significant anti-inflationary measure, as well as a significant support for the incomes and employment of workers and specialists in the country.
A proposal was discussed whereby the universal instrument for non-household consumers would have a lower threshold below which contributions to the Electricity System Security Fund (ESSF) would be made by consumers and compensation would be received by electricity producers, and an upper threshold above which contributions to the ESSF would be made by producers at appropriate thresholds by generation type, and compensation would be received by electricity consumers.
One of the options for energy-intensive companies is to provide support against commitments made by the companies for investments in renewable energy sources, the electricity from which would be returned to the Bulgarian market. Other mechanisms will be discussed within a working group.
"I will appoint a responsible deputy minister as soon as possible and convene a working group in which we will start developing this mechanism together. I believe that it should be part of a long-term policy regarding the electricity market in Bulgaria. I have already held a meeting with representatives of the Electricity System Operator (ESO) and the electricity distribution companies, with whom we discussed the possibility of preparing large joint projects to improve the infrastructure," said Minister Stankov.
During the meeting, the possibility of the countries of Southeastern Europe requesting compensation from the European Commission due to the extremely high electricity prices in the region was discussed. Enterprises from the region suffer enormous negative consequences from the imperfections in the pricing of the European electricity market, the lack of sufficient connectivity with Western and Northern Europe, as well as the burden of ensuring energy security and electricity deficit for Ukraine and Moldova.
The Minister of Energy committed to discussing the problem with his EU colleagues during a meeting on February 17-18 in Brussels.
