BUSINESS DEMANDS URGENT CONVENING OF NSAC DUE TO HIGH ELECTRICITY PRICES

On the eve of the moratorium on water, electricity and heating prices, the energy regulator will discuss a 14% increase in the price of natural gas from January.

Due to the price of electricity, the business demanded an urgent convening of the National Security Advisory Council.

The measures proposed by the state are not working, and the idea of a ceiling to compensate for energy costs will have devastating consequences, employers warn. The Ministry of Energy remained silent today.

In a letter to the media, the business described the electricity price situation as "extremely difficult". The price in the "day ahead" segment starts from BGN 411 per soft hour on December 19 and grows significantly over the next three days. As the holidays approach, the market begins to calm down.

Business analyzes show that the average price for this month will exceed BGN 500 per megawatt-hour. The record is currently held on December 22, when the price in the "day ahead" segment exceeded BGN 824 per megawatt-hour.

A difficult year for business, not only because of the pandemic effect, but also because of the drastic jump in the price of electricity on the free market, which leads to higher prices for other goods and services.

A survey among companies in Bulgaria reports that 62% have increased the price of finished products to cope with high energy prices. Another 41% cut costs, incl. for remuneration. 25 percent report reduced orders and customers. 14 percent admit that they had to lay off employees. Only 11 percent say that prices have not affected the business, but there are those who admit that they have temporarily stopped their activities.

Employers' organizations report that survival in this situation is on the verge of many companies. If there is no permanent mechanism for dealing with high electricity prices, the consequences will be severe for both businesses and consumers, according to the Bulgarian Industrial Association.

According to BIA, comprehensive energy reforms are needed to calm the market.