Prime Minister: No risk of sharp increase in electricity prices after market liberalization for household consumers

There is no risk of a sharp increase in electricity prices after the household consumers start buying electricity from traders on the free market, Prime Minister Nikolai Denkov said on October 19. This morning, President Rumen Radev vetoed the amendments to the Energy Act, which provide for liberalisation of the electricity market for household consumers as of 2026. According to the head of state, the changes create a risk of a sharp increase in electricity prices for household consumers.

"There is no risk of a sharp increase in prices. I guarantee it 100%. They may increase by a very small percentage, like 2%, but they may also decrease significantly, because the new technologies will generate much cheaper electricity than the one we are currently using. The problem with them is that they do not run continuously like a nuclear or coal plant and therefore modern power generation requires combining baseload capacity with others that produce cheaper electricity, but not continuously," the prime minister said.

He also pointed out that the law provides for mechanisms that can be used in case of an adverse scenario. He added that the European Commission is also preparing mechanisms that are related to seizing excess profits from electricity producers and directing them to vulnerable groups.

Nikolai Denkov also reminded that according to the commitments Bulgaria had made, the liberalisation of the electricity market should have happened several years ago.

"I don't expect there to be any problems with the re-voting of the law, because firstly - it has to be done and secondly - there are mechanisms in place through which this will not create problems for either electricity producers or consumers."

"I can't think that anyone would play on people's fears about such serious things, but looking at what the opposition is doing, they are doing exactly that - trying to scare people. I hope the President has not got into this rut," Denkov added.

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