ESO, electricity distribution companies express a position on the moratorium on electricity prices

The electricity distribution companies in Bulgaria - CEZ Bulgaria EAD, EVN Bulgaria AD, ENERGO-PRO Varna EAD and the state-owned Electricity System Operator (ESO) have published an official position on the moratorium on electricity, water and heating prices imposed by the Parliament.

Bulgaria’s Parliament imposed moratorium on electricity prices for household consumers

"In connection with the Decision of the National Assembly of 15.12.2021 to impose a moratorium on the price of electricity, water and heat services, electricity distribution companies in Bulgaria and the Electricity System Operator, we strongly oppose attempts to conduct state social policy through mechanisms for artificially keeping prices low.The support of households and vulnerable social groups 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 Labour and Social Policy," they write.
ESO, electricity distribution companies express a position on the moratorium on electricity prices

They emphasize that the energy regulator’s estimates for changes in electricity prices, as of 01 January.2022, will not lead to an increase in revenues of network operators, as the pricing includes the values ​​of services provided by electricity distribution companies in Bulgaria and the Electricity System. operator pay electricity producers.

"Last but not least, we must warn again that all network operators in the country are in a serious liquidity crisis since September, caused by rising electricity prices on the power exchange market, where network operators buy electricity for their technological costs. There is a real danger of inability to make payments in the generation-transmission-distribution-supply chain. The investment and repair programmes of the network operators are threatened by non-fulfillment," the statement said.

According to them, this threatens the collapse of the entire electricity system, and hence the entire economy of Bulgaria.

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

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

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