Electricity Prices in Bulgaria Likely to Drop by 1-2% from July 2013
Angel Semerdzhiev, Chair of Bulgaria's State Commission for Energy and Water Regulation (DKEVR), has suggested that electricity prices are very likely to decrease by 1-2% from July 1, 2013.
He argued that the reason for the anticipated price decrease was the reduction in the surcharge for electricity generated by high-efficiency combined-cycle power plants (CCPP) after the reduction of natural gas tariffs.
Semerdzhiev informed that the so-called green surcharge, which aims to stimulate the production of renewable electricity, would most probably remain unchanged.
The DKEVR Chair claimed that renewable energy producers could wait for their big profits because they had signed 20-year contracts.
He added that there were no reasons for an increase in the non-recoverable expenses surcharge, which was introduced in July 2012 to compensate the expenses of the National Electric Company (NEK) for purchasing energy from thermal power plants AES Galabovo and Contur Global Maritsa Iztok-3 under long-term contracts.
- » Westinghouse, Gov't to Sign Final Deal on Unit 7 Next Year - CEO
- » Bulgarian Constitutional Court to Revoke 20% Fee on Solar, Wind Power
- » Ukraine Demands Changes to Gas Transit Deal with Russia
- » Bulgarian South Stream Section Issued Positive EIA Report
- » Westinghouse CEO Arrives in Bulgaria
- » EC Initiates Gas Supply Talks between Oettinger, Novak
what an utter bonehead.
expenses for wind and solar energy are 90% an upfront cost (running costs are minimal compared to the construction).
costs and income are planned over a full 20 year period, with most investors not being interested unless ROI is around 7 years or less - maybe 10 years maximum. otherwise it would be far more sensible to simply chuck the money in a bank account paying 5 or 6% interest and be able to invest it in something else more profitable.
therefore you don't have 20 years to "wait for your profit".
this is what happens when they put a bonehead with no clue of very very basic business concept in charge of something which could attract some reasonable levels of investment to Bulgaria if managed right.
No investor - either foreign or local is going to invest in something which gives a worse return than a 5 or 10 year government bond, and is more risky. Whatever you're attracting investment for, i'm afraid these "filthy foreign leeches" aren't going to put their money into the country unless they get something back. only the EU do that - maybe that's why the government are so intent on "absorbing EU funds" rather than constructing some kind of conscious plan on how to attract sensible and motivated foreign investors.