Bulgaria's Watchdog Forecasts More Energy Price Shocks

Business » ENERGY | July 2, 2012, Monday // 11:28| Views: | Comments: 0
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Bulgaria's Watchdog Forecasts More Energy Price Shocks: Bulgaria's Watchdog Forecasts More Energy Price Shocks DKEVR Chair Angel Semerdzhiev has reiterated that the 13% electric power price spike is attributed to the surcharge for renewable energy. Photo by BGNES

After the July 1 13% electric power price hike, the cost of electric energy will continue to grow, but will not exceed 20%.

The forecast was made Monday by Angel Semerdzhiev, Chair of Bulgaria's State Commission for Energy and Water Regulation (DKEVR), speaking in an interview for bTV in the aftermath of his earlier announcement that electricity prices will increase by 13%, rather than the anticipated 10%.

The shocking news turned into reality Sunday while experts explain that the full effect on consumers is yet to be seen since all prices are expected to go up over the fact that electric energy is linked with all other goods and services.

Semerdzhiev reiterated Monday his view that the price hike can be attributed mainly to the increased production of renewable energy. According to him, the higher increase in power tariffs had been triggered by the fast-track launch of photovoltaic plants necessitating unexpected extra payments by the national power utility – the National Electric Company, NEK.

He says that "green energy" is expensive due to expensive technology, which is expected to gradually become cheaper leading to reduction of the average price. His forecast calls for a 16% share of "green energy" in the country's energy sector by 2020.

The DKEVR Head further explained that beginning 2013, the country will have to pay fees for harmful emissions and they have been included in the electric power price for the first half of the same year.

He pointed out as another problem the fact that a number of Thermal Power Plants, TPP, in the country are failing to undertake any measures to increase their effectiveness because their energy is purchased under strictly determined prices, thus they have a guaranteed profit.

Semerdzhiev gave as a good example in the direction of effectiveness the Maritza-Iztok 2 TPP.

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Tags: prices, price, State Commission for Energy and Water Regulation, DKEVR, Angel Semerdzhiev, electricity, hot water, heating, renewable energy, National Electric Company, NEK, TPP
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