The price shock in the field of energy was a leading problem, for the solution of which employers' organizations directed all their efforts during the past few months. In the period from May 15 to August 15, the Association of the Organizations of Bulgarian Employers (AOBE)[1] prepared and distributed a total of 16 opinions and open letters to all responsible institutions and the media, with the aim of ensuring the supply of natural gas at reasonable prices, as well as for fair compensation for the excessively high electricity prices for non-household consumers.

Numerous meetings were also held with representatives of the responsible institutions - the President of the Republic of Bulgaria, the National Assembly, the Council of Ministers, the Ministry of Energy, the Ministry of Economy and Industry.

For months, AOBE has been proposing mechanisms and estimates to help find a quick solution. It is thanks to the activity of the AOBE that at the end of June, when the State Budget was updated, funds were provided to compensate non-household consumers of electricity above the threshold of 250 BGN/MWh.

At the end of July, the AOBE alerted that the voted update of the State Budget could not be implemented without a decision of the Council of Ministers for additional funding of the Electricity System Security Fund. The lack of such a decision prevented the conclusion of contracts between the Ministry of Energy and electricity traders, and this meant that traders would charge non-household consumers the full price in their monthly invoices, without the expected compensation.

Throughout the period, AOBE actively demanded information on the available quantities and price of natural gas in order to ensure predictability for business and to ensure the stability of the Bulgarian economy. AOBE has repeatedly insisted on the restoration of supplies under the existing contract with Gazprom. It is a firm belief of the members of AOBE that the diversification of supplies does not mean limiting suppliers, but using all possible sources, taking into account the price conditions offered by them.

 

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[1] Members of AOBE are the nationally representative employers’ organizations: Bulgarian Industrial Capital Association (BICA), Bulgarian Industrial Association (BIA), Bulgarian Chamber of Commerce and Industry (BCCI) and Confederation of Employers and Industrialists in Bulgaria (CEIB). In 2022 BIA holds the rotating presidency of AOBE.

Date: 02.09.2022

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