Common Position of Electricity Distribution Companies in Bulgaria and the State Electricity System Operator

In connection with the Decision of the National Assembly of 15.12.2021 on the imposition of a moratorium on the prices of electricity, plumbing services and heat energy, electricity distribution companies in Bulgaria and the Electricity System Operator, we strongly object to attempts to implement the state social policy through mechanisms for artificial retention of electricity prices. The support of households and vulnerable social groups of society, which are affected by the price levels of energy services, should be implemented with the means and instruments of the legislation regulating the work of the Ministry of Labor and Social Policy.

It is necessary to emphasize that the estimates of the EWRC for the change of electricity prices, as of 1.01.2022, will not lead to an increase in the revenues of the network operators, since in the pricing the values of the services that the electricity distribution companies in Bulgaria and the Electricity System Operator pay to the electricity producers are calculated.

Last but not least, we must warn again that all network operators in the country have been in a serious liquidity crisis since September, caused by the rise in electricity prices on the exchange market, from where network operators buy electricity for their technological costs. There is a real danger of not being able to fulfill payments along the production-transmission-distribution-supply chain. At risk of default are the investment and repair programs of network operators.

All this threatens the collapse of the entire electricity system, and hence the entire economy of Bulgaria.

As buyers of energy from the exchange to cover their technological costs, network operators are the only end customers who did not receive compensation of 110 leva per megawatt hour. This compromises the measure, turning it into State aid for a target group and violating market principles of equal treatment.

We hope that in the coming days, through joint efforts and constructive dialogue, we will find a solution to address the crisis in the sector, prevent supply disruptions and effectively protect energy vulnerable consumers.

ESO EAD

CEZ Bulgaria EAD

EVN Bulgaria AD

ENERGO-PRO Varna EAD