04.08.2021

TO

MR STEFAN YANEV, 

PRIME MINISTER 

REPUBLIC OF BULGARIA

 

DEAR MR PRIME MINISTER,

 

In recent days, from August 1, 2021, the situation has worsened and expanded in volume, dramatically damaging the competitive position of companies and the industrial electricity consumers in Bulgaria in the context of the European market, which is unacceptable and irresponsible the competent institutions.

The average base price of active electricity, market "day ahead," according to the Bulgarian Independent Energy Exchange EAD for the period, is 130.95 Euro / MWh for tomorrow and is 169.10 Euro / MWh for tomorrow, August 4, 2021 (crossing the limit of 200 Euro / MWh).

For comparison, the electricity prices in Bulgaria for the period exceed those of the main export markets of Bulgarian industrial products (Germany, Italy, France, Austria) by over 50%, and the average excess for tomorrow exceeds 70% !!!

Energy-intensive industrial consumers comply with their requests, considering climatic conditions, commercial activity, and high energy consumption levels. However, the behaviour of state and municipal companies, including inadequately assessed periods for the implementation of repair programs, provoke systematic market distortions.

Instead of adequate measures, right now:

 

  • the capacities of the state company TPP Maritza East 2 EAD are loaded below 25% - in the absence of technical, resource and organizational obstacles for full load;
  • the export of electricity to Greece is in total capacity - direct and indirect (through the Republic of Northern Macedonia);
  • there is a lack of capacity for integration with the pan-European electricity market through Romania, Hungary, the Czech Republic and Slovakia.

DEAR MR PRIME MINISTER,

As responsible, nationally represented employers' organizations, we have repeatedly signalled and warned about the potential risks to the electricity market in Bulgaria. The tolerance limit has already been crossed. Following the discussions with the management of major energy-intensive companies, our members hereby inform you that we are starting a phased shutdown of production facilities, starting at 0.00. on August 4, 2021

We insist, through the operational capabilities of institutions such as the Ministry of Energy, Bulgarian Energy Holding EAD, Electricity System Operator EAD and in coordination with the regulatory authorities, to take the necessary urgent and adequate measures to:

 

  • ensuring full load of the state company TPP "Maritsa East 2" EAD;
  • temporary restriction on electricity exports - by the way, Greece has already taken action with such regard to its cross-border exchange capacity with Italy;
  • support of the affected energy-intensive industrial consumers, due to their objective inability to function because of the inadequate and non-market institutional solutions - note that the demand and supply of electricity on the market "day ahead" does not form equilibrium prices in front of aggregate curves. Constraints also result from market associations, which is beyond the management and planned behaviour of the Bulgarian non-state economic entities.

As the responsible institutions and their directors cannot deal with the situation, you should demand immediate resignations and provide resources, incl. personnel to deal with the problems that have arisen so that the Bulgarian business can be provided with enough energy for the normal functioning of the economy.

We declare our firm readiness to organize national protests to protect the interests of the hundreds of thousands working in the industrial sector in Bulgaria.

We are awaiting your immediate reaction,

 

WITH RESPECT,

 

VASIL VELEV, / P /

Chairman of the Board of the Association of Industrial Capital in Bulgaria

 

RADOSVET RADEV, / P /

Chairman of the Board of the Bulgarian Industrial Association

 

TSVETAN SIMEONOV, / P /

Chairman of the Board of the Bulgarian Chamber of Commerce and Industry

 

KIRIL DOMUSCHIEV, / P /

Chairman of the Board of the Confederation of Employers and Industrialists in Bulgaria

Date: 04.08.2021

Source: Association of Bulgarian employers' organizations

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