Vladimir Ivanov, Chair of the Commodity Exchanges and Wholesale Markets State Commission, has argued that the power price hike for industrial consumers as of August 1 will result in an increase of 1-1.5% in retail prices.

Ivanov told the Bulgarian National Radio on Tuesday that the increase determined by the Commission for Energy and Water Regulation (KEVR) would increase the cost price of products by around 5%, meaning that retail price tags would add BGN 0.01-0.02.

“We should not expect an increase in retail prices as a result of the power price hike. If there is such an increase, it will be triggered by something else,” he declared.

Ivanov explained that prices of food products were subject to cyclical changes, with the autumn period characterized by a slight upward trend due to the end of the harvesting season.

He noted that the dissemination of negative expectations led to a speculative increase in prices, adding that it would only have a short-term impact.

Petar Stoyanov, Chair of the Bulgarian Association of Microenterprises, insisted that small businesses would be worst hit by the power price hike.

He was adamant that the chain reaction triggered by the increase in electricity prices for industrial consumers would deal a serious blow to small businesses.

Stoyanov did not agree with the suggestion that retail prices would remain unaffected by the power price hike as of August 1.