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Bulgaria Sees Smaller Electricity Price Hike at Utilities' Expense

Business » ENERGY | June 20, 2010, Sunday // 17:00

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Bulgaria: Bulgaria Sees Smaller Electricity Price Hike at Utilities' Expense

DKEVR head Angel Semerdzhiev (left) and Prime Minister Boyko Borisov gave a news conference Sunday on the three power utilties. Photo by BGN

The electricity price in Bulgaria will be increased by 2% as of July 1, instead of the planned 5%, the head of the State Commission for Energy and Water Regulation announced (DKEVR).

The DKEVR Chair Angel Semerdzhiev spoke Sunday at a joint press conference together with Prime Minister Boyko Borisov presenting preliminary findings of the audit report of the country's three power utilities CEZ, E.ON and EVN.

Semerdzhiev announced that the Commission had decided on Saturday to reduce the recognized maintenance expense of the power utilities by 3%, down to 15% from the current level of 18%. In his words, this allows for the smaller price hike as of July 1.

“This reduction is irreversible. It is necessary for Bulgaria to be able to achieve the average EU percentage of recognized expense,” declared the DKEVR head.

In his words, the audit report commissioned in April by PM Borisov has shown that the electricity distribution networks of the three utilities meet EU standards but the companies have been practicing outsourcing of their services, which increased their spending in a nontransparent way and reduced their income.

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