A tough test is coming in the winter due to the rising cost of energy resources in Europe and the accumulated problems in the Bulgarian energy sector. Former Energy Minister Alexander Nikolov warned about this in the program “Face to Face“ on bTV.
According to him, the increase in natural gas prices creates pressure on electricity and heating and leads to additional inflation. Against this background, the financial condition of “Toplofikatsiya Sofia“ and “Bulgargaz“ will complicate the regulator's decisions on prices after January 1.
Nikolov outlined two main scenarios – holding prices for end users at the expense of new debts and losses in the companies or an increase in price, which will further accelerate inflation.
“Both scenarios ultimately come at the expense of the population“, he said and warned that socially vulnerable groups will be particularly affected.
Regarding the forecast for a 25% increase in the price of heating, Nikolov did not confirm the specific amount. According to him, under normal market mechanisms and without the decisions of the Energy Regulatory Commission, which according to him artificially mitigate the price for users of “Toplofikatsiya Sofia“, the increase could be even greater.
The former minister emphasized that the problems of the capital company have been postponed for years. According to him, the concession is not the only possible solution. He believes that the assets and potential of “Toplofikatsiya Sofia“ allow investments that will be repaid through future revenues, but this requires joint actions by the state and the municipality.
Nikolov also expressed doubt that part of the funds in the system are being used for “political engineering“. He linked the lack of a lasting solution to political dependencies, weak control and a lack of expert potential.
In the interview, the former minister also commented on the future of “Lukoil“. According to him, the state should participate in the talks about the strategic asset or at least be duly informed. He recalled that Bulgaria has a “golden share“ and legal control mechanisms that the administration must use effectively.
Nikolov criticized the way in which the figure of the special manager was introduced, defining its powers as too broad. According to him, the ban on fuel exports was also unjustified, worsened the company's financial results and damaged the state budget.
He pointed out that the removal of the restriction was necessary, but in his opinion, it did not in itself eliminate the risk of possible arbitration claims. Nikolov insisted that direct talks should have been held to resolve this issue.
According to the former minister, the assessment of the refinery's management should not be limited to whether supplies are continuous. It is necessary to be clear about how the final prices of fuels are formed, what expenses are recognized, how revenues are distributed and what the effect is on the budget.