Bulgarian Businesses Demand Compensation amid Surging Electricity Prices

Business | November 15, 2023, Wednesday // 10:14
Bulgaria: Bulgarian Businesses Demand Compensation amid Surging Electricity Prices

Energy-intensive industries in Bulgaria are facing a severe threat of curtailed operations or potential closures due to the soaring electricity prices. Dobri Mitrev, the head of the Bulgarian Industrial Association (BIA), highlighted this pressing issue, revealing that the budget for 2024 lacks provisions for energy compensations across various sectors.

Mitrev conveyed the BIA's communication with the government, emphasizing the urgency of addressing the European Commission's proposal to extend temporary crisis measures for state aid. This extension aims to mitigate the impact of escalating electricity prices expected until March 31, 2024, or potentially until the end of 2025. The proposal advocates for preserving the mechanism ensuring 100% compensation from the Electricity System Security Fund for prices surpassing 100 euros per megawatt-hour.

The BIA's appeal stresses the vital need to retain this compensation mechanism or establish an equivalent solution in collaboration with the government. The absence of funds for energy compensations in crucial sectors like hospitals, schools, kindergartens, and other non-household users raises concerns about the sustainability of operations under the current economic strain.

The looming threat to energy-intensive enterprises and essential institutions underlines the criticality of prompt government action to address the impact of escalating electricity costs.

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Tags: Bulgaria, electricity prices, Business Compensation, Energy-Intensive Sectors

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