05.01.2012

 

Bulgarian public and large industrial electricity consumers are seriously concerned about the unclear policy on building free market relations in the Bulgarian energy sector. Quantity of electricity produced by NPP Kozloduy offered at auction for consumption by the industry in the first half of 2012 have been reduced substantially over the same period last year. The other large producer of electricity - "Maritza East" 2 does not offer adequate amounts of the free market. This creates a real danger of speculative increase of prices of electricity for industrial users in the first half of 2012.

Increasing pressure from NEC is regarding to expand the volumes of the same regulated energy sources to compensate for inflated prices and for electricity from thermal power plant-sand renewable energy and consequently the implementation of conditional efficiency. Sequential transfer to industry of all negatives, further management of the sector poses a serious threat to the competitiveness of Bulgarian economy.


Such a policy of state-owned companies, creating an artificial shortage of electricity for domestic and industrial consumption naturally leads to an expected price increase. Realized prices on the open market for 2012 so far show increases between 7-8%. This directly affected the deterioration of the business climate in our industry and businesses can not agree on the necessary quantities of electricity at reasonable prices.

In view of the consumed volumes of Bulgarian industry, there is a serious change. This increase is expected to have a major impact on cost of production of energy-intensive sectors - steel, chemicals, mining and others. However these are sectors in which significant degree form the country's exports. Such a risky environment is a prerequisite for reducing the volume of production or even closing down production and elimination of jobs. Bulgarian production will be under pressure from its competitors, which will directly affect exports, which is one of the key factors to overcome the ongoing crisis.

Changes in electricity prices are an objective process. The only possible regulator is the market with its two sides - supply and demand; otherwise it is possible economic and social turmoil. In practice, however, again the behavior of monopolies, whose principal is the state is non-market. This leads to serious conditions to reduce the competitiveness of Bulgarian industry.

We analyze again the possibility and the quantities of electricity for domestic industrial users of the Kozloduy NPP and TPP "Maritsa East" 2 at least maintain their levels of last year. This should prevent sharp fluctuations in prices and give more opportunities the Bulgarian industry to overcome the negative effects of economic crisis. we are convinced that the state will take action to balance domestic consumption by industry and real market prices.

 

Date: 05.01.2012

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