Liberalization of Energy Market in Bulgaria Likely to Lead to Power Price Hike

Business » ENERGY | November 29, 2015, Sunday // 14:57| Views: | Comments: 0
Bulgaria: Liberalization of Energy Market in Bulgaria Likely to Lead to Power Price Hike Bulgarian Energy Minister Temenuzhka Petkova. Photo: BGNES

The forthcoming liberalization of the energy market in Bulgaria is likely to lead to an increase in the prices of the electricity in the country.

This was stated by Bulgarian Energy Minister Temenuzhka Petkova in an interview for the Bulgarian National Radio (BNR) on Sunday.

The hike in electricity prices could be expected immediately after the liberalization, which will take place from the beginning of next year.

Petkova was not in the position to give any figures of the likely increase, with the price eventually to be determined by the market.

According to her, no one is able to forecast what the price of electricity will be after the full liberalization of the energy market.

The international experience showed that in the first months after the liberalization, there was a trend for a slight increase of electricity prices, which was followed by a decrease.

She informed that a trial start of the Independent Bulgarian Energy Exchange (IBEX) will be given on December 11.

The minister explained that the full liberalization of the electricity market will take place gradually throughout next year as had been recommended by the World Bank.

The recommendation was issued due to the large number of energy poor households in Bulgaria.

Petkova assured that there were no grounds for concern regarding the country’s gas supplies.

In her words, there were regular gas supplies to Bulgaria both on the national gas distribution system and the transit gas network.

The minister noted that Bulgaria had two different plans for action, which could be implemented in the event of problem with the supplies.

One of them foresees increasing the extraction capacity from the Chiren gas storage to a maximum level, while the other involves the transit of natural gas from Greece to Bulgaria.

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Tags: Chiren, Temenuzhka Petkova, gas supplies IBEX, natural gas, market, energy, liberalization, price, electricity, Bulgaria
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