The government is preparing a €2 billion package of measures to support households, businesses, non-household consumers and energy-intensive industry. Deputy Prime Minister and Minister of Economy Alexander Pullev announced that the package is the result of meetings with representatives of industry, employers’ and sectoral organizations, as well as trade unions.
“We categorically will not allow prices to increase,” Pullev said regarding household electricity and heating prices during the heating season. According to him, the support will also cover various types of energy sources, including natural gas.
€500 Million for Businesses
Energy Minister Iva Petrova presented a separate €500 million program. It is aimed at traders, small and medium-sized enterprises, and energy-intensive industry.
For energy-intensive companies, the intensity of support is expected to increase from 50% to 70%. The change must be coordinated with the European Commission, as it is related to the state aid regime.
Other non-household consumers will receive support through a combination of funds from the Electricity System Security Fund and the Bulgarian Development Bank. The amount of monthly compensation will be increased when the electricity price for baseload exceeds €180 per megawatt-hour.
Support for Households Using Natural Gas Is Forthcoming
A new element in the package is a compensation program for household consumers who use natural gas directly. Petrova said it should be announced within a week and will support bills during the heating season from November to March.
According to the energy minister, the existing compensation mechanisms for households through the Electricity System Security Fund are secured. Electricity volumes and prices have been hedged through contracts on the special segment of the Bulgarian Independent Energy Exchange.
Petrova also said that “Bulgargaz” had adopted a strategy to maintain competitive prices for Bulgarian industry. According to her, the expected margin compared with TTF market prices is between 30% and 40%.
The €2 billion package still includes measures that need to be finalized and coordinated with the European institutions. The nearest deadline announced by the government is the launch of the program for household natural gas consumers within a week.
Sources: news.bg