Businesses warn that they are in danger of shutting down due to high electricity prices, and economists are warning of high inflation. Nearly BGN 650 per megawatt-hour – this is the average price of electricity today on the Bulgarian Independent Energy Exchange.
Yesterday, record values were set in some hours of over BGN 1,170 per megawatt-hour. At the same time, the futures market is also growing by more than 50 percent.
Against this background, unions and employers forecast growth of up to 30% on some staple foods, BTV reported.
The director of a metal products plant cannot make a plan for more than two weeks due to changing electricity prices. At the same time, he does not want to lay off workers.
“Since the war in Ukraine began, there has been an increase in steel … only today by 20%, there has been an increase in paint, transport – the whole cost chain has increased significantly,” director Kiril Yakov told BTV.
And employers and unions are adamant that expensive electricity for businesses, combined with rising inflation, projected at 15 percent, will be in everyone’s pocket.
“We are talking about unemployment, we are talking about mass impoverishment of the nation, the extreme burden on our social system and social tensions,” said Dobri Mitrev, chairman of the BIA.
“Some goods will increase by more than 20 percent and these are essential goods that are present at our table,” added Violeta Ivanova from CITUB.
For its part, the state will facilitate the procedures for the construction of renewable energy plants, so that the various industries can rely on their own electricity. However, the business wants the help of BGN 250 from the cabinet to increase dramatically.
“A price that is valid for hours or days, and from which to derive rules for compensation, is not the most reasonable thing,” said Economy Minister Alexander Nikolov.
“Compensation for business is scheduled for March 31, after which we will have a new regulator of the electricity exchange, which is developing a new market segment at low prices so that businesses can buy,” said Finance Minister Asen Vassilev.
According to the Minister of Energy, the price of household electricity is not expected to increase, but Minister Nikolov linked the price of heating to that of natural gas, and it has been growing in recent days.
