Caretaker cabinet allocates BNG 450 million to help businesses cope with increased electricity costs

Bulgaria’s caretaker cabinet on October 21 approved to allocate BGN 450 million to financially support more than 630 enterprises.

The measure is aimed to reduce the electricity costs of non-household consumers.

Each businss will receive BGN 110 per a MWh, for electricity bills for October and November.

The budget of the programme amounts to a total of BGN 450 million. The support period will be from October 1 this year to November 30, 2021 inclusive, and the compensations will be paid by the end of the calendar year 2021, Stefan Yanev, caretaker PM, said.

The funds will come from the state-owned nuclear power plant Kozloduy to the state budget. The money will be deducted from the plant’s dividend payments over the next few years.

The aid will be granted through standard contracts, which the Ministry of Energy will prepare within the next 5 days.

The BGN 110 is separate from the BGN 30 per megawatt-hour, which the cabinet has already offered to the business.

The relief measure does not require a Budget revision, which at the moment is not possible as there is no sitting Parliament.

By giving this help to the business, we do not set conditions. We do not negotiate with the business and we do not open a contract in which we say: "We grant this aid, but in return we ask you for this. We rely on their good faith, on their solidarity with their owners, with the chain of their suppliers, so that this aid is used rationally and does not lead to additional pressure on the prices of the finished products they produce, said Stefan Yanev, caretaker PM.

Aid contracts will be signed between the Ministry of Energy and electricity traders.