Business and government have agreed to greater compensation due to high electricity prices. The increase in the price of electricity and natural gas has an extremely negative impact on the enterprises in our country, according to the latest study by the Bulgarian Chamber of Commerce and Industry.
74 percent of companies state that they cannot plan the prices of their goods and services, and 63 percent fail to increase the salaries of their employees, despite high inflation. They can't cover their expenses that much.
If the price crisis continues, some businesses are preparing to lay off staff, others are reporting losses. About a quarter say they may close.
Only 4 percent of the companies report a positive impact.
The high price of electricity makes it difficult to determine the cost of production in a Stara Zagora enterprise that produces cast iron products. Electricity already forms 60-70% of the price of products. They have been operating at a loss for several months:
"Purely economic logic is that when something works at a loss or when we become uncompetitive, most of our customers would give up on us," said its financial director Galin Kirev.
After today's online meeting with the authorities, business concerns have decreased, large employers' organizations reported. A new agreement has been reached as a ceiling for compensation.
"The compensation for October and November was BGN 110, for December it will be BGN 129, and for the first quarter there will be a ceiling of BGN 250, but it is a function of the established price - 250 ceiling is reached at a stock exchange price of BGN 520, we hope not to touch this ceiling ", said Vasil Velev from BICA.
However, businesses acknowledge that this compensation will help keep inflation in check, and companies will be able to plan their sales at certain prices.
"We have agreed with the prime minister on the following, if any, works on the market, to monitor and if there is tension and escalation of prices, to consider another type of compensation," said Dobri Mitrev of the Bulgarian Industrial Association (BIA).
The business expects today's agreement to be formed as a decision of the Council of Ministers.
