13.05.2024

The acting Minister of Energy warns: Household electricity may become more expensive from July 1

There is a serious risk that household electricity will become more expensive from July 1. On this date, the Commission for Energy and Water Regulation (KEVR) must determine the prices for the next 12 months.

The warning was issued by the Acting Minister of Energy Vladimir Malinov on the air of FET.

"The condition of the Power System Security Fund is very serious." Within this month, I held three meetings with the management of the fund. The accumulated deficit is serious. At the moment, it is over BGN 450 million, and it is expected to reach BGN 550 million by the end of the regulatory period, which will end in June. There is no way that the accumulated deficit in the energy fund will not affect the price of household electricity , because in the next regulatory period, if KEVR strictly complies with the regulatory framework, this accumulated deficit must be compensated. There is a serious potential for an increase in the price of electricity from July 1, 2024," said Malinov.

However, the official Minister of Energy indicated that specific measures will be proposed next month to compensate for the deficit in the fund and to minimize the "price shock" for households.

The contract with Botash

According to Malinov, the renegotiation of the contract for access to the Turkish gas network with the state company Botash will not be easy. Still, he remains moderately optimistic.

"I am learned, so every decision of the National Assembly must be implemented. There is a decision to renegotiate the contract with Botash. I immediately held a meeting with the Turkish energy minister and stated our firm position. It will not be easy to renegotiate the contract, since Turkey has achieved an economic benefit from it, but we understand that the contract was signed in a different economic environment", explained Malinov.

The National Assembly obliged the Ministry of Energy at the end of April to renegotiate the contract with "Botash", which is for 13 years and stipulates that Bulgaria will pay more than 2,2 billion dollars under it. According to the agreement, our country is obliged to pay 500 dollars each day for access and transmission of gas through the Turkish gas system, regardless of whether it transfers quantities or not.

Malinov also announced that Bulgaria is currently conducting negotiations with Azerbaijan to increase the supply of natural gas to Bulgaria also through Turkey, and not only through Greece. Talks are also underway with South Korea for joint supplies of natural gas to both countries.

Minister Vladimir Malinov and the Ambassador of the Republic of Korea to our country Bae Jengin / Photo: Facebook/Ministry of Energy