The increase in the price of heating and electricity, which the working group at the KEVR proposes, is well balanced and has its own logic. This was stated in the program “Face to Face“ by Anton Ivanov, an energy expert from the Bulgarian Energy and Mining Forum.
“I think it is inevitable. It can probably move a little, but inflation creates the need for price increases, not the other way around. The production of electricity is related to the input of products, and they have already absorbed part of the inflation. The proposed increase is lower than the average inflation. That's why I claim that there is a reasonable balance," he explained.
According to him, the proposal is lower than what all the companies wanted. "The most loudly discussed case was with "Toplofikatsiya Sofia" - a 30% increase. Now we see a 5% increase."
"The companies open their balance sheets and give their picture. And the EWRC recognizes some expenses or advises not to make them. But this is already a matter of balancing," Ivanov added.
Ivanov pointed out that according to the commission's report, over 50% of district heating companies end up with financial losses. "It's not just Sofia. It's very large, but all district heating companies are financially bad for last year. And this is clearly expressed in numbers in the working group's report“.
According to him, a solution can be sought, but it requires serious changes in the way of working.
„The proposal of the Bulgarian Energy and Mining Forum is that a concession can be made. However, this is denied. I cannot understand why. But it is true that if there is no professional management, it will not happen“, he believes.
According to him, a civil servant cannot be appointed. “The best person you can appoint will still be under pressure from the Municipal Council. I have seen it. It will not happen“.
„We import electricity not because of the membrane of a unit in the “Kozloduy“ nuclear power plant, but because the electricity market in the region has become very tied and competitive. Separately, many producers have entered, who are strongly financially supported. They can afford lower prices to stay on the market“, explained Ivanov.
In his words, in this sense we see a totally changed market compared to what we are used to seeing back in the years. “I claim that it is very difficult for us to track the cost centers along the supply chain now. It is not like it used to be. Back then, it was very easy to track where there were higher costs along the chains and the spotlights were directed there“.
“Now it is impossible, because in fact we do not know on whose exchange we trade energy and on which exchange our energy is offered. But what we see is that from an exporter we are gradually turning into a balancer on the regional market. The production of our conventional power plants, unfortunately, has a very difficult time finding a market niche“, he pointed out.
The expert explained that the working group's report also shows a strong decrease in the production of our conventional power plants, including those of the “Kozloduy“ NEK and the “Maritsa East 2“ TPP.
“It is good that their energy is successfully marketed for households, in order to ensure that the “Maritsa East 2“ TPP also maintains a minimum staff this year. Otherwise, we would be in a very bad situation“, he commented.
According to him, long-term solutions are related to the search for new capacities to replace the departing coal-fired power plants.