EBRD RECOMMENDS ELECTRICITY PRICE INCREASE

Business | November 21, 2001, Wednesday // 00:00

The European Bank for Reconstruction and Development (EBRD) recommends electricity price in Bulgaria and the countries in Eastern Europe and Central Asia to be raised at least to its U.S. level. The bank sees the increase as the only way for the Eastern European countries to attract investments and prevent electricity waste. The average electricity price in Eastern Europe is four cents, in the United States – eight cents and in Europe – fifteen cents. Only Slovenia and Croatia meet the EBRD criteria for electricity price close to that in the U.S. Representatives of the EBRD said that the governments are cautious about the social effect the measure would have. According to them however a big part of these countries’ populations can afford such an increase. Subsidies are to be granted to all the rest. If the companies from the sector are privatized by big strategic investors, the payments of electricity bills will become far more regular, representatives of EBRD claim.
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