Bulgaria Braces for 9% Electricity Price Hike in 2023
Bulgaria is bracing for a significant increase in electricity prices as the new year approaches, with the State Commission for Energy and Water Regulation (KEVR) confirming a planned hike of around 9%. This predicted rise, announced in a recent KEVR statement, is attributed to the increased consumption during the colder months.
The final decision on the exact price increase will be made on January 1, as authorities work to mitigate the impact on consumers. However, industry experts warn that the inevitable hike will have significant repercussions.
Kaloian Staykov, chairman of the Institute for Energy Management, warned that the disparity between projected and current market prices has led to substantial losses, which are now threatening the sustainability of energy companies. "The delay in increasing the prices has caused significant stress in the regulated market," Staykov said in a television interview with "Zdravei, Bulgaria" on Nova TV.
Staykov also highlighted a shift in heating trends, with consumers opting for air conditioning over traditional steam heating systems to manage their energy costs.
Victor Minchev from the "Free Energy Market" Association echoed Staykov’s concerns, citing the inflexibility of Bulgaria’s energy system as a contributing factor. "Our market can’t react to global changes, which is why we’re asking why we’re raising electricity prices again after six months," Minchev explained, pointing to inefficiencies in production, management, and the failure to adopt new technologies as underlying issues.
Minchev also noted the presence of covert subsidies in the energy sector, highlighting an opaque distribution of funds, including those funneled to "Maritsa East 3" (ME 3) through the National Electricity Company (NEK). He argued that the current system, overseen by KEVR, contributes to these unclear money movements.
The upcoming price hike serves as a reminder of the global energy crisis, which has seen European electricity prices surge by an average of 30-40% in 2022 and by an additional 10% since then. As the continent grapples with the fallout, Bulgaria’s efforts to insulate its citizens from sharply rising energy bills face their stiffest test yet.
