Power Price Hike as of October is Unavoidable – Bulgaria’s Energy Minister

Business » ENERGY | September 26, 2014, Friday // 16:42| Views: | Comments: 6
Bulgaria: Power Price Hike as of October is Unavoidable – Bulgaria’s Energy Minister Bulgaria's caretaker Economy and Energy Minister Vasil Shtonov, photo by BGNES

Bulgaria’s caretaker Minister of Economy and Energy Vasil Shtonov has argued that the power price hike by 10% as of October 1 is an unavoidable step for the stabilization of the market.

Speaking Friday at an extraordinary briefing, Shtonov informed that the National Electric Company (NEK) had run up a deficit of around BGN 3 B, with BGN 1.5 B of the total generated by projects such as the Tsankov Kamak Hydroelectric Power Plant and the Belene nuclear power plant, and the remainder of the sum attributable to an imbalance.

Shtonov suggested that the increase in electricity prices was part of a plan to stabilize NEK, adding that the process was expected to take 3-5 years.

“We are aware of the fact that the purchasing power of Bulgarians is limited but this step is necessary in order to avoid turbulence in the economy,” he stated, as cited by the BGNES news agency.

He said that the stabilization of the sector involved renegotiating long-term contracts for purchasing electricity at preferential prices with the US-owned thermal power plants AES-3C Maritza East 1 EOOD and Contur Global Maritsa Iztok-3 and renewable energy producers.

Shtonov explained that the expensive energy produced by combined-cycle thermal power plants would be primarily used for their own needs and only the remainder would be purchased.

Bulgaria’s caretaker Energy Minister explained that these measures would be accompanied by a gradual increase in electricity prices.

He underscored that 95% of the experts at the Energy Board approved of the power price hike, adding that the deficit of NEK would increase by almost BGN 1 B a year unless steps were taken to rein it in.

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Tags: Vasil Shtonov, caretaker Economy and Energy Minister, power prices, electricity prices, National Electric Company, NEK, renewable energy
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» To the forumComments (6)
Ms. Dove - 27 Sep 2014 // 13:08:12

I can assure you I am neither a 'communist' or a 'retard' And name-calling undermines your point of view and civility.

People cannot exist at or below the poverty line. They need humanitarian aid. Being proactive and productive does not preclude support to those in dire straits.

Capitalism - 27 Sep 2014 // 11:02:56

Seems all you idiots on this forum want communism back. Bunch of retards.

What Bulgaria needs is not government spending on pensions or welfare. What it needs is to increase its PRODUCTIVITY and become COMPETITIVE.

Ms. Dove - 27 Sep 2014 // 10:47:37

Those on old age or disability pensions are last in government priorities.

Whatever contribution they have made to their country has been forgotten and like squeezed oranges are thrown in the garbage pile.

The European Union do not perceive a need for humanitarian relief.

The ultimate example of apathy and contempt was a statement last year in the newspaper stating that politicians were working OVERTIME to assist those on pension.

anon - 27 Sep 2014 // 07:22:08

What happened last time the prices went up? We had big protests as people could not afford to pay their bills. Yet they will spend EU funds on co operation projects with Serbia and Turkey. Why not use EU funds for EU citizens. Corrupt, all of them.

EDWARD - 27 Sep 2014 // 00:20:37

Seems all those wind turbines at the coast and across the country were a waste of money ?

EDC - 27 Sep 2014 // 00:18:02

Fantastic you can stay warm in the winter for an extra 10% ,just means on the basic Bulgarian pension you will starve as you had to pay bills instead of buying food ,
His salary a month is ????????????? and a pension is only pocket change to him typical polatican .thinks only about money and xxxx the people.

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