EVN to Demand 7-9% Power Price Increase

Business » ENERGY | February 4, 2014, Tuesday // 15:26
Bulgaria: EVN to Demand 7-9% Power Price Increase

EVN Bulgaria EAD will propose a 7-9% power price increase for end consumers as of July 1, the company announced Tuesday.

By the end of February, EVN will submit a formal proposal to Bulgaria’s State Commission for Energy and Water Regulation (DKEVR).

The company warned of possible electrical grid breakdowns in case the end prices remain the same.

Joerg Sollfelner, Chief Executive Officer at EVN Bulgaria EAD, claimed that a minimum of BGN 130 M for operational costs in the electrical grid are needed, compared to the currently approved operating costs of BGN 106 M.

Last year’s investments amounted to only BGN 73 M, the reason being the three-fold cut in the end price of electricity in eight months, according to Sollfelner.

EVN Bulgaria has made total investments amounting to BGN 1.051 B in the grid for the period 2005-2013, which resulted in power outages decreasing by 40%,” Sollfelner said warning that “in case investments stop, the electrical grid will deteriorate to the state it was in 2005”.

The company noted that as of 30 December the state regulator has reduced the recognized technology costs of EVN from 10% to 8 %, while the realistic levels achieved by the company were 10.8 %.

EVN Bulgaria reminded that in 2005 the costs came up to 20.5% and to reduce them the company has invested more than BGN 1.1 B.

This steady rate of investment has not been acknowledged by DKEVR in the last pricing decisions which have deprived the investment and maintenance programs of EVN Bulgaria of nearly BGN 50 M, the statement said.

The economic imbalance puts the company’s performance and investments at risk, EVN warned.

The company points out that Bulgaria 's energy industry needs expert solutions in order to avoid future damage.

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Tags: EVN Bulgaria, DKEVR, State Commission for Energy and Water Regulation, power price cut, Joerg Sollfelner
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