EWRC Chairman Ivan Ivanov: Our decisions were perfect. They were stopped. Now we will see the negative consequences

Energy / Bulgaria
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"The independent regulator makes its own decisions. Every state institution, every party, even during public debates, and every citizen can ask us questions and ask for clarification. We have never refused. Our decisions were perfect, and we will only now see the negative consequences. " This was stated by the Chairman of the EWRC Ivan Ivanov in the program "Drive straight" on Nova TV. He was adamant that the EWRC had done a perfect job, and the model could have had a zero increase in electricity prices. Now, the risk is that if the state does not intervene, especially after the lifting of the moratorium, the price of electricity will increase. "Compensation cannot be used all the time because it distorts the market model," said Ivan Ivanov.

The chairman of the energy regulator was adamant that the application for the reduction of the gas price from February 1 is on the old board of Bulgargaz.

"It is an indisputable fact that the application for the price of natural gas for approval from February 1 is on the current board of directors of Bulgargaz. The newly appointed members of the new board have not yet been entered in the commercial register of the Registry Agency, "said Ivan Ivanov.

Asked how he explained the fact that the prime minister had said something that was not in fact true, he said he was very embarrassed by the prime minister's statement, "because I think he has to, because the position he holds is well-informed and in no way presents false and unverified information to Bulgarian citizens, because this calls into question the competence and information of the highest head of state in the country - the Prime Minister of the Republic of Bulgaria. It is inadmissible to deceive the Bulgarian society in this way ", Ivan Ivanov was categorical.

The chairman of the regulatory commission also explained why the increase in the price of natural gas was necessary from January 1 this year. "The truth is that the application for the price of natural gas from February 1, as well as the application for the price from January 1, are determined by the same methodology. The difference is in the data obtained from international exchanges. I do not think that a 30% increase in the price of natural gas from 1 January should surprise those who watched the price move in December. There were extreme values. The increase is based on objective facts, data and the methodology used, "Ivanov said.

"We had proposed from January 1 a model that could realize a zero increase in the price of electricity for household consumers, without leading to the introduction of a moratorium, which is an unacceptable measure for a market economy and which administratively restrains prices," also said Ivan Ivanov.

Asked who stopped this, the chairman of the energy regulator replied: "The National Assembly", in which, in his words, the ruling party and the opposition "had united", with the exception of the MRF. "For me, it was a mixture of misunderstanding the matter, because no one turned to us to ask why and how, since the price of electricity had to increase by 64%, we managed to reduce this increase to only 11%. “

"Our decisions were perfect. However, they were stopped. We will only now see the negative consequences, "he said.

"The price of electricity will not increase by 64% now. This was a calculation as of January 1. We reduced it to 11%. "Our proposal was to reduce VAT on energy by 10%, and in practice the increase would be 0%, a method used in the United States during the great oil crisis of 1973 and currently used in many EU countries." the head of the energy regulator.

Ivan Ivanov also commented on the statement of the Minister of Interior about the energy regulator.

"I read the statement of the Minister of Interior. What he noted about the EWRC is that it has come to the conclusion that it is no coincidence that the way the commission works. I don't know what he includes in the words "it's no accident." Of course, this is no accident. The Commission complies with the law, complies with all regulations and this is not accidental, "said Ivan Ivanov.

"Mr. Boyko Rashkov's tone is not that of an interior minister, but of a prosecutor. Because not him, the prosecutor's office can bring charges. Secondly, with unspoken doubts, he creates a wrong impression among Bulgarian citizens. If it turns out that the EWRC has no doubts about the strictness and fulfillment of its obligations, such as those prescribed by law, I ask - who will take responsibility that for a week, maybe two families of these employees were under stress, that their father or their mother is under investigation and there is a public suspicion that they have broken the law,” Ivanov asked.

He said the scheme with intermediaries removed in 2012 cannot be returned. "But if you change the name of an intermediary with a trader who stands between the external supplier and the Bulgarian consumer, especially large industrial companies, then this thing could eventually happen. Just as there are electricity traders, so there can be natural gas traders. But this will lead to a significant increase in the price of natural gas, especially for industry. That is why the employers' organizations strongly protested with a letter to the Prime Minister. Because at the moment they use the price that Bulgargaz sets for the regulated market as a public supplier, but due to the long-term contracts with the business, it provides natural gas for the business at the same price. This will disappear if this scheme is discussed, "said the EWRC chairman.

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