EC APPROVES BUSINESS SUPPORT SCHEME BECAUSE OF EXPENSIVE ELECTRICITY

The European Commission (EC) has approved a business support scheme due to expensive electricity, according to the Ministry of Energy. Brussels’ assessment is that the BGN 110 allocated per megawatt-hour required does not constitute inadmissible state aid.

“We understand that the measure will benefit all consumers other than those subject to regulated prices,” reads a letter from the head of DG Competitiveness, Olivier Gersent, to the Ministry of Finance and forwarded to the Ministry of Energy.

The caretaker government has decided to allocate funds to support businesses due to high electricity bills. Similar measures are applied in other EU countries. The Bulgarian scheme will be financed with funds from the profit of Kozloduy NPP.

The Action Guidelines on Expensive Electricity from Brussels recommended that the proceeds from the sale of emissions be used to protect vulnerable consumers. In our country, however, this step is not possible because there is no functioning parliament to approve the amendment in the legislative framework. Kozloduy NPP is making big profits from the high price of electricity, as expensive carbon allowances do not weigh on the price.

The decision to allocate the funds to the business was made at the end of October and 630 thousand companies are expected to benefit from the aid. Initially, the amount of BGN 50 per megawatt-hour was discussed, but the business complained that this amount was extremely insufficient.

The caretaker government also commented that a working parliament was needed to approve the redistribution of funds in order to provide the aid. Eventually, however, the companies will receive the relief in their October bills. The approved scheme is temporary - for the period October 1 - November 30.

The total planned funds amount to BGN 450 million.